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Views on 2030

Dr. Robin Mann,
Director
Centre for Organisational Excellence Research
New Zealand
March 2012
Introduction


1.   Mega Challenges

2.   Professional Benchmarking

3.   Technology and Benchmarking

4.   Conclusion
In 2009/11 a comprehensive study was
undertaken on business excellence in 5 countries


India, 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 and
impact 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 identify
what are the main issues/problems they are facing so that they can then be addressed. The models
provide an objective means to identify key challenges. (Japan)

Business excellence helps companies to address macro challenges at the
micro level. Therefore Category 2, Strategic Planning helps to address the
financial crisis, Category 4, People, helps to address cultural and social issues,
Category 5, Processes, helps to address legal requirements and international
standards, and Category 1.3, Leadership and social responsibility, helps to
address environmental issues. (Singapore)

Yes, business excellence helps companies to address these challenges via prompting them to
address such issues in their strategy. Business excellence is all encompassing (India)

The challenges are addressed through business excellence as it provides a strategic framework for
addressing them. Through its emphasis on benchmarking it encourages best practices to be found
to 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 award
winners used the tools shaded in yellow than non-award winners. These tools included
Knowledge Management and Benchmarking – both essential for effective best practice
learning and implementation.

                                                                                                     Measurement,
Leadership           Strategy         Customer                     Workforce          Operations      Analysis &
                     Planning          Focus                        focus               Focus         Knowledge
                                                                                                     Management

Corporate 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)
                                                                                                          Information
Management By      SWOT Analysis       Customer                     Employee      Plan-Do-Check-Action     Collection
Walking 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
              respondents

return of
<$10,000
for 28% of
respondents
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 benchmarking




Benchmarks showing the performance levels of other
organisations do not help other organisations to
understand what practices or innovations they need to
implement to improve.
Best practices. There is no point in
identifying “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         Benchmarking
Improvement




                                                       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 technology
more effectively for benchmarking purposes

Years 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 is
unprecedented in human history, and the rate of information
generation continues to grow exponentially. Yet, the sheer
volume of information is in danger of creating more noise
than value, and as a result limiting its effective use.
Innovations in how information is organized, mined and
processed hold the key to filtering out the noise and using
the growing wealth of global information to address
emerging challenges”


         Global Agenda Council on Emerging Technologies,
         Global Agenda Summit 2011 in Abu Dhabi
Benchmarking websites can play a key part in sorting
through the noise and providing reliable and relevant
benchmark 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 best
practice sharing – e.g. Enable organisations to upload
   their best practices as a text file, photo or video
Concluding Statements
The world is getting smaller...


                              Faster communication...
                                  Faster travel...
                   People are becoming more global than national




More 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 benchmarking


Best 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

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"Views on 2030" by Dr. Robin Mann

  • 1. Views on 2030 Dr. Robin Mann, Director Centre for Organisational Excellence Research New Zealand March 2012
  • 2. Introduction 1. Mega Challenges 2. Professional Benchmarking 3. Technology and Benchmarking 4. Conclusion
  • 3. In 2009/11 a comprehensive study was undertaken on business excellence in 5 countries India, 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
  • 4. The study researched the value and impact of business excellence in Asia
  • 5. 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)
  • 6. 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 identify what are the main issues/problems they are facing so that they can then be addressed. The models provide an objective means to identify key challenges. (Japan) Business excellence helps companies to address macro challenges at the micro level. Therefore Category 2, Strategic Planning helps to address the financial crisis, Category 4, People, helps to address cultural and social issues, Category 5, Processes, helps to address legal requirements and international standards, and Category 1.3, Leadership and social responsibility, helps to address environmental issues. (Singapore) Yes, business excellence helps companies to address these challenges via prompting them to address such issues in their strategy. Business excellence is all encompassing (India) The challenges are addressed through business excellence as it provides a strategic framework for addressing them. Through its emphasis on benchmarking it encourages best practices to be found to help companies to progress (Thailand)
  • 7. 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)
  • 8. The 2009/2010 APO study showed that a significantly greater proportion of award winners used the tools shaded in yellow than non-award winners. These tools included Knowledge Management and Benchmarking – both essential for effective best practice learning and implementation. Measurement, Leadership Strategy Customer Workforce Operations Analysis & Planning Focus focus Focus Knowledge Management Corporate 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) Information Management By SWOT Analysis Customer Employee Plan-Do-Check-Action Collection Walking 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
  • 9. return of >$250,000 for 20% of respondents return of <$10,000 for 28% of respondents
  • 10. 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
  • 11. There needs to be a greater awareness and understanding of benchmarking Benchmarks showing the performance levels of other organisations do not help other organisations to understand what practices or innovations they need to implement to improve.
  • 12. Best practices. There is no point in identifying “best practices” if they are not going to be implemented 12
  • 13. 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 Benchmarking Improvement 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
  • 14. Recommendation One – There is a need for Professional Benchmarking - Certified training providers - Certified trainees - Institute for benchmarking professionals
  • 15. Recommendation Two – We need to review how we can use technology more effectively for benchmarking purposes Years to reach 50 million users: 38 years 13 years 4 years 9 months to reach 100 million..
  • 16. Informatics – how information is managed – is the No1 technology issue that needs to be solved “The quantity of information now available is unprecedented in human history, and the rate of information generation continues to grow exponentially. Yet, the sheer volume of information is in danger of creating more noise than value, and as a result limiting its effective use. Innovations in how information is organized, mined and processed hold the key to filtering out the noise and using the growing wealth of global information to address emerging challenges” Global Agenda Council on Emerging Technologies, Global Agenda Summit 2011 in Abu Dhabi
  • 17. Benchmarking websites can play a key part in sorting through the noise and providing reliable and relevant benchmark data and best practices to organisations.
  • 18. The BPIR.com has databases rich with information that can be searched by business excellence model criteria
  • 19. However, users are now moving away from static information and demanding instant answers through networking
  • 20. Websites today and in the future need to facilitate best practice sharing – e.g. Enable organisations to upload their best practices as a text file, photo or video
  • 22. The world is getting smaller... Faster communication... Faster travel... People are becoming more global than national More 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.
  • 23. 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
  • 24. 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
  • 25. Final message from Dr Robert Camp – the father of benchmarking Best 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