A presentation from Mike Watson, New Zealand Business Excellence Foundation

1. In Search of Excellence
The New Zealand Business Excellence Foundation

2. 1. OVERVIEW
Mission “To enable New Zealand organisations to achieve
and sustain proven World Class performance and
results”
We provide A range of services, advice and assistance to
support NZ businesses in their Business
Improvement activities, this includes -
 Frameworks for Business Improvement
 Business Assessment services
 Events and networking opportunities
 Internationally calibrated award programmes
 Benchmarking
 Training – in house and public courses
 Consulting services
 Mentoring and advisory services

3. NZBEF Membership encompasses a wide variety of organisations
ACC New Zealand Refining Company
Inland Revenue Leadership New Zealand
Fuji Xerox Muscular Dystrophy Association of NZ
NZ Police New Zealand Institute of Management
NZ Fire Service New Zealand Organisation for Quality
NZ Post AUT
NZ Trade & Enterprise Auckland DHB
Royal New Zealand Navy Bay of Plenty DHB
New Zealand Aluminum Smelter Counties Manukau DHB
Air New Zealand Mercy Hospice
Housing NZ Corporation Order of St John
Department of Labour Spectrum Care
Department of Internal Affairs Fulton Hogan
Fisher & Paykel Appliances Lumleys Insurance NZ Ltd
NZ Freightways Ltd Hutt City Council
Dulux NZ Lumley Insurance
Meridian Energy Environment Canterbury
Saint Clair Wine Estate Brookfields Lawyers
VERO Insurance NZ Bartercard NZ
Auckland Council Ministry of Social Development
Wintec Min. Civil Defence & Emergency Mgmt
Cambridge Resthaven Department of Corrections
Sport NZ Waipa District Council
Dept of Internal Affairs Ministry of Primary Industries
NZ Defence Force Housing New Zealand Corporation

4. 1. OVERVIEW
The evolution of business improvement models

5. 1. OVERVIEW
What are “Best Practice” organisations doing?
Conducting regular Benchmarking to prevent
assessments to identify “reinventing the wheel”
improvement opportunities
Aligning their workforce and Adopting a “continuous
business processes to meet incremental improvement”
customer requirements approach
Focusing on improving
performance & capability across
the whole organisation

6. 1. OVERVIEW
Business Improvement frameworks
Source – NZ Ministry of Economic Development

7. 1. OVERVIEW
The Baldrige Criteria for Performance Excellence (CPE) reflects the
common characteristics of World Class organisations
 Visionary leadership
 Customer driven excellence
 Organisational and personal learning
 Valuing employees and partners
 Agility
 Focus on the future
 Managing for innovation
 Management by fact
 Social responsibility
 Focus on results and creating value
 Systems perspective

8. 2. HOW IT WORKS
The Baldrige Framework is very detailed - however there are abridged
versions available for those starting the journey

9. An integrated
Strategic
Management
Framework

10. The International “Best Practice” Framework is a key reference
framework because it is holistic, non-prescriptive and addresses the
relationships between key business functions

11. 2. HOW IT WORKS
Key relationships between criteria categories
How will you achieve
them?
What are your key
business objectives? How are you
actually doing?
How will you track your progress?

12. BALDRIGE ASSESSMENT FACTORS & POINTS
55% 45%
Process Results
1. Leadership • Process
2. Strategic • Customer
How you Planning • Workforce How
run your 3. Customer Focus • Leadership / You
4. Measurement and
Organization Analysis
Governance Perform
• Financial/Market
5. Workforce Focus
6. Operations Focus
9

13. 2. HOW IT WORKS
Alignment between Enablers (1-6) & Outcomes (7)

14. 2. HOW IT WORKS
Self Assessment is a key component of a Business Improvement approach

15. 2. HOW IT WORKS
Identifying and Prioritising the Opportunities
WHERE IS THE GREATEST NEED FOR IMPROVEMENT?
WHERE DO WE WANT
HIGH TO BE IN THE FUTURE?
GAP
MEDIUM
WHERE ARE WE NOW?
LOW
Training is Highly visible Performance is Staff feel There is a We understand
considered leadership monitored engaged focus on risk customer needs
effective team effectively management

16. 2. HOW IT WORKS
Tracking progress – multiple applications / assessments
Rate of Improvement
800
700
600
500
400
300
200
100
m
C
S
E
P
g
n
o
s
a
e
c
r
)
t
f
(
0
YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Year of the BE Journey

17. 2. HOW IT WORKS
Alignment of awards in New Zealand
NZ BUSINESS EXCELLENCE AWARD
GOLD
WORLD CLASS
SILVER
NZ BUSINESS ACHIEVEMENT AWARDS
BRONZE
NZ International Business Awards
NZ Excellence in Business Support Awards
REGIONAL LEVEL AWARDS
NZ Franchise Awards
eg Westpac Sponsored ATEED Awards
NZ Health Innovation Awards
NZ Insurance Awards
NZ Tourism Awards
Time

18. 2. HOW IT WORKS
Why do it? NZBEF survey data
Key drivers influencing the decision to adopt the CPE
External recognition & credibility
Benchmark within & across industries
Access to established Business Excellence
networks
Needed a business framework to co-ordinate a
range of initiatives
External measure of performance
Desire to be ‘world class’
Internationally proven to work
Guide continuous improvement
0 20 40 60 80 100
% respondents (great deal or moderate amount)

19. 2. HOW IT WORKS
Perceived influence over time – NZBEF survey results
Stakeholder & customer relationships
Engagement
Organisation wide capacity
Voluntary involvement
Greater Expertise
Improved Business results
Clarity of direction
0 40 60 80 100
% respondents (great deal or moderate amount)

20. 3. REAPING THE REWARDS
What are the benefits
 Improved Financial Results
 Increased Market Share
 Improved Customer Satisfaction
 Increased Employee Satisfaction
 Organisational awareness and alignment
 Consistency of approach

22. Lean Six Sigma Value Delivery (NZ$million)

23. REAPING THE REWARDS
Figure 4.1-3 Tools used for the assessment & analysis of Organisational Performance

24. 3. REAPING THE REWARDS

25. 3. REAPING THE REWARDS

26. VERO - Business Process Re-engineering Process

27. VERO – Integrated Project Management Process

28. 3. REAPING THE REWARDS

30. 3. REAPING THE REWARDS
Background of industrial conflict during the 1990’s
- internally focused on proposed changes to work arrangements
- workforce disconnected from management, disillusioned and demoralised
- organisational reputation damage
- lack of investment in organisational improvement
Business Excellence – a key platform for change
- total organisational model
- enables systematic identification of opportunities for improvement
- benchmarking and evaluating progress

31. REAPING THE REWARDS

34. IN SUMMARY
 The fundamentals of running a successful organisation
in the public, private or not for profit sector are
essentially the same.
 There is no better alternative than a structured,
consistent, organisation-wide approach to business
improvement.
 Business improvement is not an “add on”, rather, it’s an
essential part of running a successful organisation.

35. McKinsey 7-S Framework is made up of seven interdependent factors that
determine how corporations are operating:
1.Shared Values: Core beliefs and attitudes that drive employee behaviours.
2.Strategy: Long-term company plan. What is the long-term strategic direction of the
company?
3.Structure: Company hierarchy. The ways business units and departments are linked.
4.System: Formal or informal procedures and processes to get things done in organizations.
5.Staff: Employee is always known to be the key asset of your company. How motivated,
trained and engaged are your employees?
6.Style: Company management and key personnel’s management style. How problems get
solved by organization leaders.
7.Skills: Core competencies and capability of the company.

36. According to Mintzberg organisations are formed of five main parts:
Operating core
Those who perform the basic work related directly to the production of products and services
Strategic apex
Charged with ensuring that the organisation serve its mission in an effective way, and also that it serve the needs of those
people who control or otherwise have power over the organisation
Middle-line managers
Form a chain joining the strategic apex to the operating core by the use of delegated formal authority
Technostructure
The analysts who serve the organisation by affecting the work of others. They may design it, plan it, change it, or train the
people who do it, but they do not do it themselves
Support staff
Composed of specialised units that exist to provide support to the organisation outside the operating work flow

37. The organizational configurations framework of Mintzberg is a model that
describes six valid organizational configurations
1. Mutual adjustment, which achieves coordination by the simple process of informal
communication (as between two operating employees)
2. Direct supervision, in which coordination is achieved by having one person issue orders or
instructions to several others whose work interrelates (as when a boss tells others what is to be
done, one step at a time)
3. Standardization of work processes, which achieves coordination by specifying the work
processes of people carrying out interrelated tasks (those standards usually being developed in the
technostructure to be carried out in the operating core, as in the case of the work instructions that
come out of time-and-motion studies)
4. Standardization of outputs, which achieves coordination by specifying the results of different
work (again usually developed in the technostructure, as in a financial plan that specifies subunit
performance targets or specifications that outline the dimensions of a product to be produced)
5. Standardization of skills (as well as knowledge), in which different work is coordinated by virtue
of the related training the workers have received (as in medical specialists - say a surgeon and an
anesthetist in an operating room –responding almost automatically to each other’s standardized
procedures)
6. Standardization of norms, in which it is the norms infusing the work that are controlled, usually
for the entire organization, so that everyone functions according to the same set of beliefs (as in a
religious order)