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  • Business Excellence Model (EFQM)
    help an organisation to better manage its financial capabilities The concept of delegation of financial control is a common theme shared by Excellent organisations also the development of financial control is linked with the individual s performance appraisal There are different criteria to plan the future and decide whether a particular investment is the correct one for example an estimate of costs capital expenditure customer benefits and an estimate of deadlines Excellent organisations deliver high levels of stakeholder confidence by ensuring financial risks are identified and appropriately managed One of the basic tenets of the EFQM Excellence Model is the concept of Assessment and Review The Model is a dynamic framework not a static one and it demands that no matter how good you think you might be there is always room for improvement The management of Buildings Equipment and Material in a sustainable way Apart from your people you need to know what your key assets are how to segment them and what percentage of your capital employed is given to fixed assets We can use different tools to help maximise assets some are the following that tends to be used in a Manufacturing environment Just in Time JIT Is a methodology for increasing productivity reducing throughput times inventory and time to market Total Productive Maintenance TPM It takes a preventative approach to maximising the potential output of your equipment by creating conditions for perfect production zero losses zero defects zero accidents The 5S Philosophy focuses on effective work place organisation and standardised work procedures 5S simplifies the work environment reduces waste and non value activity while improving quality efficiency and safety One of the biggest challenges facing organisations today is to identify how to get more out of the resources it uses than perhaps it currently achieves and at the same time recognising its responsibility to be a good corporate citizen minimise the harm it currently causes to the environment and manage any adverse effects A growing number of organisations are adopting the ISO 14000 standard to help them gain control in this area This standard does not specify levels of environmental performance and is not meant for specific business activity Instead it offers a framework for an overall strategic approach to your policies plans and actions A second framework is the Eco Management Audit Scheme EMAS The overall objective of this European Commission initiative is to promote continuous environmental performance improvement and provide relevant information to the public The management of Technology to support the delivery strategy The organisations that aspire to Excellence recognise the impact potential of technology embrace new technologies and use them to help keep ahead of the game They involve their people and other relevant stakeholders in the development and deployment of new technologies to maximise the benefits generated They use technology to support innovation and creativity The management of Information and Knowledge to support effective decision making Excellent organisations have processes in place that help them to manage this mountain of data

    Original URL path: http://bgma.eu/en/efqm.php?pages=7 (2015-11-07)
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  • Business Excellence Model (EFQM)
    strategy How do I identify my Key Processes Brainstorming people discuss all the business activities and then decide which are the most important Interviewing key Stakeholders those people affected by or having an impact on the processes Using the services of an external consultant A further option is to start with the generic Porter model and then customise it to the organisation In determining your key business processes a main question to ask yourself is from the perspective of my business strategy which process are key to achieving my business objectives It is worth mentioning here that when defining the performance requirements of your key processes as well as ensuring that the business objectives are met you take into account other considerations such as Key Stakeholders view of performance The organisation s desired future state and What the competition is doing Building a Process Model of the Organisation The next step is to build a top level Process Model of the organisation that begins to show the flow of activities and the inter relationships This top level view can be used to understand and describe the activities of the organisation Below that processes can be modelled in more detail This can lead to modelling of sub processes to describe at the working level the process operation and to allow both re engineering and step by step improvements to improve efficiency and effectiveness At the top level generally speaking most Good Practice organisations appear to segment their key processes into two categories Business or Customerfacing processes those processes that deliver the added value product or service to the customer and Support processes Management processes thoseprocesses that provide the resources required for the Business Customer facing processes to work in accordance with the overall strategy and objectives of the organisation The analysis of your key processes then continue as you decompose each key process into its component parts Typically organisations will break a key processes down to at least another two layers sub process level and procedure or task level where each task or procedure represents a step in the specific sub process level The Process Model and Process Mapping Tools The top level process model is really a container for the detailed key processes To extend it beyond a simple block diagram the descriptions need to represent the linkages in some way This is known as process mapping A simple way of representing a process is to use a flowchart that can link in a logical sequence the activities that make up the process The advantages of this method are that it is simple requires no significant investment in expensive software tools or training and is relatively quick A disadvantage is that on a flowchart it can be difficult to describe the resources required to carry out the activities A refinement is to use the technique known as deployment flowcharting The Role of Measurement in Process thinking If your organisation aspires to improve then measurement is critical in tracking progress Measures

    Original URL path: http://bgma.eu/en/efqm.php?pages=8 (2015-11-07)
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  • Business Excellence Model (EFQM)
    vendor ratings compliments and complaints represent the most important dimension of Customer Results and contain the majority of lagging indicators The first challenge facing an organisation is to decide on a relevant set of perception measures There are two main considerations The first is to ensure that the process of perception measurement provides information on the various activities undertaken by the organisation in its pursuit of fulfilling customerrequirements The second consideration is the importance and priority attached to the measures by the Customer The most sophisticated measurement system in the world is of little value if it does not deliver data that is relevant to the Stakeholder group Good results in irrelevant areas will not help an organisation to focus on improvement actions that will make a difference 2 2 Performance Indicators These measures are the internal ones used by the organisation in order to monitor understand predict and improve the performance of the organisation and to predict perceptions of its external Customers Organisations rely on lead indicators that will provide data on its operations by the day week and month that help to predict the response of Customers well before they are canvassed for their opinions 2 3 Range of Results Scope and Segmentation What does a comprehensive set of Customer Results mean for your organisation The answer is directly related to the range of Customers that you serve and the size and nature of your portfolio of products and services An incomplete set of Customer Results can have a dramatic impact on the value of the information collected for informing improvements future strategy and business results There are three potential mistakes To assume that Customers think alike and act alike Organisations that assume success because they receive positive feedback from a majority ofCustomers may be ignoring an important message from the minority that account for most of the revenue or who may be influential in the future allocation of public funds Segmenting Customers into meaningful groups ensures that the diversity of requirements and needs is identified and effective strategies determined for each group To canvass opinion and collect performance data on a limited or popular group of products and services neglecting other aspects of the organisation s offerings that might be high or low maintenance high or low revenue generating or key differentiators in the market place Asking only about the most popular products or services could prevent you from identifying some important opportunities To limit the collection or analysis of Customer Results to certain geographical locations or functions within the organisation 2 4 Setting Targets One component of assessing an organisation s performance in relation to Customer Results is to see the results matched against the targets set by the organisation Even then we might not be fully satisfied unless we know if the targets set are relevant in terms of an organisation s declared aspirations Effective organisations apply specific targets to specific indicators rather than setting one or two general targets to cover whole groups of

    Original URL path: http://bgma.eu/en/efqm.php?pages=9 (2015-11-07)
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  • Business Excellence Model (EFQM)
    everyone has different specific wants So in order to understand your People and the focus of their motivation you need to understand how they are acting and how they perceive themselves within the need hierarchy You also need to understand the specifics of what they want Measures that enable you to do this are the most useful and also help you identify how to improve your people results Within the EFQM Excellence Model two categories of measures are identified Perception Measures are of the People s perception of the organisation Performance Measures are the internal ones used by the organisation to monitor understand predict and improve the performance of the organisation s People and to predict their perceptions 2 2 Perception Measures Perception Measures are how People feel about themselves their job and about the organisation These are subjective measures but should be treated seriously as they provide you with a very useful indicator of the health of the relationship between the organisation and its People As these measures focus on the effect of what has already happened they are sometimes called Lagging Indicators People s perceptions of the organisation can be measured through their assessment of two main factors their motivation and their satisfaction It is important to understand that although motivation and satisfaction are inter related they do in fact have very different consequences A person who is happy with the terms and conditions of their job may be satisfied but not necessarily motivated Someone who agrees with the organisation s strategy and relates to its leaders may be highly motivated to succeed but may not be satisfied with the pay To measure your People s perception you need to look at the topics that are important to your organisation but it is insufficient to know what people think about an issue without understanding their view of the importance of the issue 2 3 Performance Measures Performance Measures are measures of independent internal indicators showing how well People are performing They can also be used to help predict future performance and perceptions and are sometimes called Leading Indicators Performance indicators identified in the EFQM Excellence Model are categorised into 5 sections Involvement and engagement Target setting competency and performance management Leadership performance Training and career development Internal communications 2 4 The Path to Excellent Results The Excellence of the Result is determined by the degree to which an organisation can demonstrate trends targets and comparisons numerically with clear references to causes and the presentation of a set of results that correspond to the range of activities and the size and nature of the organisations Setting Targets The targets need to be relevant in terms of the organisation s declared aspiration and should be demonstrably stretching in a direction that supports your business strategy and not easily achieved without effort Trends the EFQM Excellence Model encourages organisations to plan and manage for repeated durable good performance at least 3 years Benchmark data you can Benchmark processes organisations and or

    Original URL path: http://bgma.eu/en/efqm.php?pages=10 (2015-11-07)
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  • Business Excellence Model (EFQM)
    inside the organisation between different employees 1 3 Starting with the Enablers Policy and Strategy Practical experience has taught us that when organisations start to use the EFQM Model they find Society Results very challenging if they have not developed a strategy for managing their relationships with the different groups in Society To develop that strategy you need to follow a process following the steps suggested below 1 Identify your society Stakeholders and determine the desired relationships and policies 2 Create approaches processes and measures to deliver the desired relationships 3 Ensure that society stakeholders management has full support of leaders 4 Ensure that staff are appraised and recognised for supporting the strategy 5 Measure your success from the perspective of society customers and people 6 Consider the results in relation to your strategy and business plan budget 7 Learn lesson review and revise your society strategy approaches and targets Making your approach to Society and the environment an explicit part of your Strategy conveys a powerful message to all of your Stakeholders But one significant difference between Good Practice organisations and other is the degree to which Society strategies are made tangible and relevant to everyone involved Producing Tangible Results 2 1 A Culture of Non Measurement Experience shows that organisations undertaking Self Assessment often find themselves with low scores in the area of Criterion 8 because even though they perceive themselves to be environmentally friendly and society aware they have never quantified their efforts and have only a general sense and a set of assumptions about the impact they are having Some organisations take the attitude that measurement is not important but Good Practice organisations apply the same rigour to their relationships with Society Stakeholders that they apply to other Stakeholder groups 2 2 Perception Measures The EFQM Excellence Model separates Society Results into two distinctive groups of measurements Society s Perception of the organisation obtained for example from surveys reports public meetings public representatives governmental authorities and Performance Indicators such as quantity frequency volume or weight measured by the organisation There are two main ways of collecting data in relation to Society s Perception Direct canvassing usually via surveys commissioned survey measures are often called laggin indicators because they happen after event Indirect collection benefiting from data collected by other parties 2 3 Performance Indicators These measures are the internal ones used by the organisation in order to monitor understand predict and improve the performance of the organisation and to predict perceptions of its external customers Performance measures are usually linked with volume frequency time and weight Organisations often find that it takes little effort to install a measurement system in relation to their activities Perception Measures and Performance Indicators quantify efforts and help organisations to understand the degree to which policies are being deployed and efforts are justified Bringing a measurement culture to your Societal and Environmental activities will enable you to focus your improvement efforts and determine accurately if you are part of the problem

    Original URL path: http://bgma.eu/en/efqm.php?pages=11 (2015-11-07)
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  • Business Excellence Model (EFQM)
    are the operational ones used in order to monitor understand predict and improve the organisation s likely key performance outcomes Within Kaplan and Norton s Balanced Scorecard four perspectives the Internal Perspective and Learning Perspective come closest to the idea of KPIs 1 4 Differences between Commercial large and small Public Sector and Not for Profit Organisations It is a myth that there are vast differences between the method of measurement the choice of measures and the quality and excellence of the results obtained between commercial companies and the public sector and not for profit organisations 1 5 Achieving Excellent Key Performance Results We have made several references to achieving good results and the need to understand good from your Stakeholders perspectives The rigorous scoring framework that accompanies the EFQM Excellence Model RADAR scoring matrix Results Approach Deployment Assessment and Refinement offers a very clear picture of its expectations in relation to Results The Excellence of the Result is determined by the degree to which an organisation can demonstrate trends targets and comparisons numerically with clear references to causes The results must also correspond to the range of activities size and nature of the organisation Trends The EFQM Excellence Model encourages organisations to plan and manage for repeated durable good performance rather than be satisfied with one off success Sustainability is assessed by the degree to which the organisation s Key Performance Results show positive trends over a period of 3 years Setting Targets An organisation s performance in relation to Key Performance Results cannot be assessed fully unless the results are matched against the targets set by the organisation Even then we might not be fully satisfied unless we know if the targets set are relevant in terms of the organisation s declared aspirations Use of Benchmark Data The Critical Success Factors for Benchmarking are the methodology you use and your choice of Benchmarking partners Range of Results Scope and Segmentation Although you may be measuring a range of activities and processes both in terms of Outcomes and Indicators there are a number of interesting questions How selective are you in what you are choosing to measure and what you are choosing to report Does your set of results align with your strategy your business plan and your core and key processes Are you producing a pertinent comprehensive set of Results for your organisation 1 6 Organisations without a Culture of Measurement or Results Orientation In organisations that don t measure or set targets results are still produced but the degree to which they meet Stakeholders requirements will depend more on good fortune than planning When organisations start to use the EFQM Excellence Model a substantial proportion of them score low in the Results criteria not because their work does not produce results but because they have never managed their activities with the end in mind Building a Culture of Measurement and Results Measurement is the main ingredient of Performance Management and the Excellence of your Key Performance Results

    Original URL path: http://bgma.eu/en/efqm.php?pages=12 (2015-11-07)
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  • Business Excellence Model (EFQM)
    a sound grasp of the EFQM Model and the Fundamental Concepts of Excellence Step 2 Develop and deploy the communications strategy For Self Assessment to be successful in your organisation it is imperative that early on in the process you have a clear strategy for the message you want to communicate Step 3 Plan for Self Assessment When considering which specific Self Assessment technique to adopt the current culture of your organisation needs to be taken into consideration There is no superior technique for Self Assessment The most important factor is for the organisation to have clarity on the outcomes it is looking to achieve and then choosing the specific Self Assessment technique that is the most appropriate for delivering those desired outcomes you also can run two different techniques at the same time There are no set rules the Self Assessment can be carried out at any and all levels However experience shows that many organisations first undertake one or more pilots to test the water and learn more about the process Step 4 Select and train people directly involved in the process When undertaking a Self Assessment there are a number of different roles that can come into play dependent upon the specific technique employed Some roles such as sponsor project manager and staff will feature regardless others Assessor Assessor Team Leader Facilitator Data gatherer Report writer are very much dependent on the technique chosen Step 5 Conduct Self Assessment The introduction of any new process needs careful management Self Assessment is no exception to this rule and it is best managed as a project The primary objective of Self Assessment is to identify an organisation s strengths and areas for improvement and create the energy to improve the organisation s performance Step 6 Consider Outcomes Prioritise Organisations are unlikely to have the resources to address all these opportunities concurrently and it would be unrealistic for them to try Indeed some improvement opportunities may have limited impact on the organisation s key results Therefore you also need clear processes in place for the prioritisation of the outcomes as well as the management of the subsequent improvement action plans and the ongoing monitoring of progress through business as usual review cycles Step 7 Establish Implement The outcomes from conducting the Self Assessment provides the moment in time picture of the status of the organisation usually expressed in terms of Strengths Areas for Improvement and sometimes a score Step 6 provides us with the list of prioritised improvement opportunities Project management provides a structured methodology for implementing the action plans Regardless of the size and nature of the specific activities committed to in the action plan it is a good practice to Produce a synopsis of the problem gap to be tackled Define the required deliverables Determine the indicators of success Include an indication of timescales and project resources Have visible and specific accountability for delivery Make sure actions are integrated into the organisation s planning cycle Action plans and

    Original URL path: http://bgma.eu/en/efqm.php?pages=13 (2015-11-07)
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  • Bulgarian Management Association - Service Quality Program
    gain more insights about the purchase decisions of already lost customers It will be more appropriate to do this over the telephone If this method is inefficient i e no information can be obtained over the telephone former customers should be called and asked for face to face interviews b Collecting internal information Internal information will be collected with three purposes generating ideas for improvements measuring the accuracy and speed of our work and testing the work related knowledge of associates Four modes of collecting information will be used Employee opinion survey The purpose of the survey will be to identify how associates rate their performance what major constraints to service excellence they face and what do they think needs to be done to achieve improvements Valuable information will be collected if such surveys are initiated before and after implementation of SQP and other projects that target operational and service improvements Observations The purpose will be to collect data needed to measure specific service quality indicators In particular this technique will be used to find out the Turnaround cycle time and the Error rate of key processes see Section IV 2 2 Measures Operational Efficiency indicators Supervisors line staff or external people will be appointed to measure time and report errors Tests Tests are the most appropriate way to assess associates knowledge about company s products and services Short fixed time tests can accessed through the Intranet and submitted electronically each quarter Assessment can also be done electronically therefore minimizing the time needed for administration Automatically generated data This method will be used to calculate several growth indicators specified in Section IV 2 3 Measures Market Share indicators All data will be obtained from MIS 2 Measures to track customer satisfaction It is suggested to have three groups of measures i Overall Satisfaction ii Operational Efficiency and iii Market Share The first group Overall Satisfaction will include two direct indicators of customer s perception about our products and services i Level of trust in the organization and ii Level of satisfaction with products and services Variations of these indicators will also be tracked to provide for the meaningful content of the above two statements For more details see Appendix 3 Figure 3 Overall Satisfaction indicators are important but they have certain deficiencies as well For example they are symptoms of organization s performance and they do not provide information on the causes for the quality of service products Customer satisfaction indicators show the result of how efficiently effectively we work on issues that create value for the customer Therefore between customer s opinion tracked by surveys and the quality we offer at certain moment exists a time lag of probably several months This is why it is important to have a second group of measures Operational Efficiency measures They will point out at major causes for the level of service quality and will provide early warning information on the expected customer satisfaction This will allow us to take actions well

    Original URL path: http://bgma.eu/en/sqp.html (2015-11-07)
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