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Impact of Business Excellence/Quality Awards on Enterprises

Authors:

Abstract

This report shows the key findings and actions that resulted from a research project to identify the value and impact of business excellence frameworks (also known as quality award frameworks). The research aimed to identify the relevance of business excellence for long-term competitiveness and sustainability in Asia, and to determine what, if any, changes to the frameworks were required in terms of design or application. In addition, the research aimed to explore how companies applied business excellence concepts and practices and the assistance they required on their journey to business excellence. The research focused on five countries: India, Japan, Republic of China, Singapore, and Thailand. Participant organizations were from the private sector and ranged from early adopters of business excellence to award winners. Research data was collected by means of a comprehensive online survey, discussion groups, and interviews with award winners. In total, 74 companies completed the survey, 21 discussion groups were held, and 13 award winner interviews were undertaken.
Business Excellence/
Quality Awards
on Enterprises
Impact of
Asian Productivity Organization
Report of the APO Survey on the Impact of Business Excellence/Quality Awards on
Enterprises under DON Strategy (09-RP-26-GE-DON-C)
Dr. Robin Stephen Mann, New Zealand, served as the author of this report.
The views expressed in this e-publication do not necessarily reflect the official views of the
Asian Productivity Organization (APO) or any APO member. The APO is not responsible
for the accuracy, usability, and safety of its contents.
All rights reserved. None of the contents of this e-publication may be used, reproduced,
stored, or transferred in any form or by any means for commercial purposes without prior
written permission from the APO.
© 2011 Asian Productivity Organization
ISBN: 978-92-833-2417-1
CONTENTS
Foreword ............................................................................................................................. v
List of Tables ..................................................................................................................... vi
List of Figures .................................................................................................................... vi
List of Abbreviations and Acronyms ................................................................................ x
Executive Summary ........................................................................................................... 1
1. Introduction .................................................................................................................... 3
1.1 Purpose and Scope of the Research ................................................................................ 3
1.2 Definitions ...................................................................................................................... 4
2. Research Methodology ................................................................................................... 5
3. Findings (and Potential Actions) ................................................................................... 7
3.1 Impact of Business Excellence ....................................................................................... 7
3.1.1 Strengths (Positive Points from Findings) .......................................................... 7
3.1.2 Areas for Improvement (Negative Points from Findings) .................................. 8
3.1.3 Potential Actions to Address the Areas for Improvement .................................. 8
3.2 Design of Business Excellence Frameworks .................................................................. 8
3.2.1 Strengths (Positive Points from Findings) .......................................................... 8
3.2.2 Areas for Improvement (Negative Points from Findings) .................................. 9
3.2.3 Potential Actions to Address the Areas for Improvement .................................. 9
3.3 Awareness of Business Excellence .............................................................................. 10
3.3.1 Strengths (Positive Points from Findings) ........................................................ 10
3.3.2 Areas for Improvement (Negative Points from Findings) ................................ 10
3.3.3 Potential Actions to Address the Areas for Improvement ................................ 11
3.4. Application of Business Excellence ............................................................................ 12
3.4.1 Strengths (Positive Points from Findings) ........................................................ 12
3.4.2 Areas for Improvement (Negative Points from Findings) ................................ 12
3.4.3 Potential Actions to Address the Areas for Improvement ................................ 13
3.5 Business Excellence Awards ........................................................................................ 14
3.5.1 Strengths (Positive Points from Findings) ........................................................ 14
3.5.2 Areas for Improvement (Negative Points from Findings) ................................ 15
3.5.3 Potential Actions to Address the Areas for Improvement ................................ 15
4. Proposed Business Excellence Initiatives for Asia ..................................................... 17
5. Review of the Research Approach .............................................................................. 21
6. Conclusion ..................................................................................................................... 23
Appendix A
Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises ............ 25
Appendix B
Discussion Group Notes on the Impact of Business Excellence/Quality Awards on
Enterprises .......................................................................................................................... 97
Appendix C
Collection of Key Slides Related to the Project ............................................................... 106
................................................................................................................................................
v
FOREWORD
The research project on the Impact of Business Excellence (BE)/Quality Awards (QA) on
Enterprises was carried out under the umbrella of the APO Center of Excellence (COE) for
Business Excellence. SPRING Singapore was designated by the APO as its COE for BE in
April 2009 to assist APO member countries to develop and strengthen their BE/QA
initiatives, as well as to expand the BE framework throughout the Asia-Pacific region.
The BE/QA framework is a dynamic system for managing enterprises to improve
competitiveness and productivity. By utilizing this framework, enterprises can take
advantage of a proven set of criteria to identify strengths and opportunities and then align
management systems and processes to create an environment for sustainable, continuous
improvement. The goal of the research was to assess the impact of existing BE/QA
frameworks on organizations and enterprises in the APO membership, focusing on the
Republic of China, India, Japan, Singapore, and Thailand via an online questionnaire
responded to by 74 private-sector companies, ranging from early BE adopters to QA
winners. In addition to the questionnaire, 21 discussion groups were held and 13
interviews undertaken with award winners. The findings were then analyzed by an expert
group to determine whether and how the existing BE framework should be modified for
the benefit of specific types of enterprise, if gaps exist in its adoption in the broader Asia-
Pacific region, and how BE/QA activities are likely to evolve in the future to reflect
innovations and changing measures of competitiveness.
This volume contains the results of the research and analysis of the application of the BE
framework and its impact on the five APO members. The publication will benefit other
national productivity organizations as they assist client companies in putting BE into
practice. It will also contribute to the development of meaningful QA systems to catalyze
innovation and promote greater competitiveness in the APO region as a whole.
Ryuichiro Yamazaki
APO Secretary-General
Tokyo
July 2011
vi
LIST OF TABLES
2.1 Research Methodology and Project Timeline ............................................................ 5
4.1 Initial List of Potential Initiatives ............................................................................ 17
4.2 Final list of Potential Initiatives and Allocation of Votes ....................................... 19
LIST OF FIGURES
1.1 Business activity distribution expressed as a % ...................................................... 26
1.2 Distribution of organizations based on sector ......................................................... 27
1.3a Organization size expressed as a % ........................................................................ 28
1.3b Annual revenues expressed as a % ......................................................................... 28
2.1 Knowledge of business excellence expressed as a % ............................................. 29
2.2 Perceptions on business excellence expressed as a % ............................................. 30
2.3 First year of using a business excellence framework for
assessment expressed as a % .................................................................................. 31
2.4a Result of first business excellence assessment expressed as a
score achieved ......................................................................................................... 32
2.4b Result of first and last business excellence assessment expressed
as a score achieved .................................................................................................. 32
2.5 Business excellence assessment types expressed as a number of
assessments from 2005–2009 .................................................................................. 33
2.6 Business excellence maturity level expressed as a % .............................................. 34
2.7 Average (median) time per company spent on each type of
business excellence activity in 2008 ........................................................................ 35
2.8 Measuring investment in business excellence and returns/benefits
achieved expressed as a % of responses .................................................................. 36
3.1 Rating of practices, processes, and systems in the “past” and “now”
expressed as an average rating of responses ............................................................ 40
3.2 Rating of business results in the “past” and “now” expressed as
an average rating of responses ................................................................................. 41
3.3 Importance of business excellence in gaining a competitive
advantage expressed as a % of responses ................................................................ 42
vii
3.4 Results of using business excellence on company’s systems and
performance expressed as a % of responses ............................................................ 43
3.5 Recommending of business excellence to suppliers and customers
expressed as a % of responses ................................................................................. 44
3.6 Sales growth and productivity expectations cross tabulated with
business excellence maturity ................................................................................... 45
4.1a Most popular short-term goals expressed as a % of responses ................................ 49
4.1b Most popular long-term goals expressed as a % of responses ................................. 50
4.1c Importance of business excellence in helping companies to reach
the 15 most popular short-term goals ...................................................................... 50
4.1d Importance of business excellence in helping companies to reach
the 15 most popular long-term goals ....................................................................... 51
4.2 Level of confidence in the local business excellence framework
expressed as a % of responses ................................................................................. 52
4.3 Level of confidence in the business excellence framework
as a tool for assessing sustainable competitiveness expressed
as a % of responses .................................................................................................. 53
5.1 Reasons for implementing a business excellence initiative
expressed as an average of importance .................................................................... 58
5.2 Senior management awareness of business excellence
expressed as a % of responses ................................................................................. 59
5.3 Employees’ awareness of business excellence expressed
as a % of responses .................................................................................................. 60
5.4a Activities that should be improved or undertaken more often
by the country’s BE administrator to raise business excellence
awareness expressed as a % of responses ................................................................ 62
5.4b Business excellence awareness activities that have been experienced
by respondents expressed as a % of responses ........................................................ 63
5.4c The business excellence awareness activities that rated as most
beneficial expressed as a % of responses ................................................................ 63
6.1a Company’s business excellence approach in education and training
expressed as a % of responses ................................................................................. 66
6.1b Company’s business excellence approach in assessment
expressed as a % of responses ................................................................................. 67
6.1c Company’s business excellence approach in frequency of
assessment expressed as a % of responses .............................................................. 67
viii
6.1d Company’s business excellence approach in scope of assessment
expressed as a % of responses ................................................................................. 68
6.1e Company’s approach in creating supporting structure for
business excellence expressed as a % of responses ................................................. 68
6.2a 10 highest priority application activities (activities that help
companies to improve) that the country’s BE administrator should
focus on improving or undertaking more often expressed as a %
of responses ............................................................................................................. 71
6.2b The 10 business excellence application activities (activities that
help companies to improve) that have been experienced the most
by respondents expressed as a % of responses ....................................................... 72
6.2c Business excellence application activities (activities that help
companies to improve) that rated as most beneficial expressed
as an average of responses ....................................................................................... 72
6.3a Internal issues hindering the commitment to implement business
excellence expressed as a % of responses ............................................................... 74
6.3b External issues hindering the commitment to implement business
excellence expressed as a % of responses ............................................................... 74
7.1 Country’s profile of business excellence award expressed
as a % of responses .................................................................................................. 76
7.2a 10 highest priority award related activities that the country’s BE
administrator should focus on improving or undertaking more often,
expressed as a % of responses ................................................................................. 78
7.2b The 10 business excellence award activities that have been
experienced the most by respondents expressed as a % of responses ..................... 79
7.2c The business excellence award activities that rated as most beneficial
expressed as a % of responses ................................................................................. 79
7.3 Value of business excellence award expressed as a % of responses ............................ 80
7.4 Need for change in business excellence award application process
expressed as a % of responses ................................................................................. 81
8.1a % of companies that stated they had “Moderate” or “High”
awareness of an improvement tool .......................................................................... 84
8.1b % of companies that use an improvement tool ........................................................ 84
8.1c % of companies that rated an improvement tool as having a
“Moderate” or “Major” impact on improving company performance ..................... 85
8.1d Likelihood to use the improvement tool in the next 3 years if not
currently used expressed as a % of responses ......................................................... 85
ix
9.1 Winning a national business excellence award expressed as a
number of organizations per year ............................................................................ 86
9.2 Benefits of winning a national business excellence award expressed
as an average of responses ....................................................................................... 87
9.3 Duration of benefits from winning a business excellence award
expressed as a % of responses ................................................................................. 88
9.4 Change in business excellence focus since winning last award
expressed as a % of responses ................................................................................. 89
9.6 Importance of innovation expressed as a % of responses ........................................ 92
9.7 Most important areas of innovation expressed as a % of responses .......................... 93
9.8 Level of innovation expressed as an average score of responses ............................... 95
9.9 Responses to “Do you think that the Business Excellence Framework
should focus more on innovation?” expressed as a % of responses ........................ 96
x
LIST OF ABBREVIATIONS AND ACRONYMS
5S Sorting, Simplifying, Sweeping, Standardizing, and Self-Discipline
APO Asian Productivity Organization
BE Business Excellence
BPR Business Process Reengineering
CEOs Chief Executive Officers
CII Confederation of Indian Industry
COE Center of Excellence
COER Centre for Organisational Excellence Research
CSD Civil Service Department
CSR Corporate Social Responsibility
EFQM European Foundation for Quality Management
FMCG Fast Moving Consumer Goods
HR Human Resources
HRD Human Resource Development
ISO International Organization for Standardization
JQA Japan Quality Award
KSS Knowledge Sharing System
MBNQA Malcolm Baldrige National Quality Award
MPR Management Performance Review
NPOs National Productivity Organizations
NQA National Quality Award
OFIs Opportunity for Improvements
PDCA Plan-Do-Check-Act
QFD Quality Function Deployment
ROC Republic of China
ROI Return on Investment
SARS Severe Acute Respiratory Syndrome
SBU Strategic Business Unit
SEAT Standardization and Evaluation Assistance Team
SMEs Small and Medium-sized Enterprises
SPRING Standards, Productivity and Innovation Board
SQA Singapore Quality Award
SQC Statistical Quality Control
SWOT Strengths, Weaknesses, Opportunities, and Threats
THB Thai Baht
TPM Technical Performance Measurement
TQA Total Quality Assurance
TQC Total Quality Control
TQM Total Quality Management
– 1 –
EXECUTIVE SUMMARY
This report shows the key findings and actions that resulted from a research project to
identify the value and impact of business excellence frameworks (also known as quality
award frameworks). The research aimed to identify the relevance of business excellence
for long-term competitiveness and sustainability in Asia, and to determine what, if any,
changes to the frameworks were required in terms of design or application. In addition, the
research aimed to explore how companies applied business excellence concepts and
practices and the assistance they required on their journey to business excellence.
The research focused on five countries: India, Japan, Republic of China, Singapore, and
Thailand. Participant organizations were from the private sector and ranged from early
adopters of business excellence to award winners. Research data was collected by means
of a comprehensive online survey, discussion groups, and interviews with award winners.
In total, 74 companies completed the survey, 21 discussion groups were held, and 13
award winner interviews were undertaken.
The key findings from the research were:
Companies reported that business excellence had a major impact on their
competitiveness and performance.
Companies indicated that the frameworks were relevant for long-term
competitiveness and sustainability, and only minor changes to the design of the
frameworks (if any) were needed.
Time and effort should be put into making the frameworks easier to understand;
the value of the frameworks needs to be more clearly communicated.
Innovation — and how it relates to business excellenceneeds to be more clearly
explained to companies.
Companies want increased assistance with benchmarking and learning from best
practices.
While awards are important, they are for recognition and not the prime motivator
for the majority of companies. The prime motivator is to “become world-class”.
Once the research was completed, the findings were analyzed by members of the Asian
Productivity Organization (APO) at the Conference on Quality Award Systems; the
following initiatives to advance business excellence in the region were proposed:
To develop a business excellence training manual for assessors and consultants,
and to deploy the manual.
To develop a website of benchmarking, best practice, and business excellence
information to serve the needs of companies.
To provide capability-development assistance to business excellence award
administrators. In particular, to assist administrators of immature or non-existent
award systems to move to an advanced stage of maturity. This will likely
necessitate a guidebook, the sharing of best practices between administrators, and
mentoring by advanced administrators.
– 2 –
Executive Summary
To encourage and/or support networking/best practice sharing between countries
through events, visits, and forums.
To repeat the APO research on business excellence at regular intervals (with some
modifications, for example, using hard data to measure the impact of business
excellence).
To collect and publish case studies on best practices, as well as on how business
excellence is helping companies to improve.
It is now the role of the APO, the Center of Excellence (COE) and the Regional Steering
Committee for Advancing National Quality Award Programs to develop a clear plan of
action for these initiatives, and to see whether all or a few can be undertaken in the near
future.
In conclusion, the research has made a significant contribution to the understanding of
business excellence, its application, and its impact within Asia. The research and actions
stemming from the research will benefit:
Asia’s national productivity organizations (NPOs) in providing relevant and
effective services to assist companies on their journey to excellence.
Asia as a whole, as a result of the Asia-wide strategies and services that will be
implemented by the APO, COE, and APO members to help more companies
advance in business excellence. This is likely to lead to greater productivity and
competitiveness within the region.
– 3 –
1. INTRODUCTION
This report shows the key findings and actions that resulted from a research project
entitled the Impact of Business Excellence Framework Adoption by Enterprises in the
Viewpoint of CEOs and Adopting Organizations.
This research was commissioned by the APO Secretariat following a meeting of the
Regional Steering Committee for Advancing National Quality Award Programs in October
2008. The Regional Steering Committee was made up of national productivity
organizations from India, Japan, Republic of China (ROC), Singapore, and Thailand.
Dr. Robin Stephen Mann, from the Centre for Organisational Excellence Research
(COER), was assigned to lead the research project, reporting to the APO’s Program
Officer, Duangthip Chomprang.
The research officially started on 8 August 2009 and concludes with the publication
of this report. This report captures the main findings from the research.
1.1 PURPOSE AND SCOPE OF THE RESEARCH
The broad aims of the research were:
To identify the performance results and outcomes achieved by organizations that
use a business excellence framework in APO countries.
To identify the relevance of business excellence for long-term competitiveness and
sustainability in the region, and to determine what (if any) changes to the
frameworks were required in terms of their design or application.
To find out how award-winning organizations view innovation, and whether they
consider it as being adequately reflected in the business excellence criteria.
To identify the potential best practices or opportunities for improvement in the
support services that NPOs provide to organizations on their business excellence
journey (from services ranging from increasing awareness of business excellence
to award administration services).
The scope of the research was:
To focus on five APO countries: India, Japan, ROC, Singapore, and Thailand.
For participant organizations to come from the private sector, and preferably
include a mix of small to medium-sized enterprises (SMEs) and large
organizations.
For there to be a range of participant organizations, from early adopters of business
excellence to award winners.
For there to be a minimum of 20 participant organizations per country. Ideally, ten
of these were to be award winners (with an absolute minimum of five award
winners per country).
The research findings were then to be shared with the Regional Steering Committee
and all other APO member countries at the Conference on Quality Award Systems in
Bangkok, Thailand (1518 December 2009).
– 4 –
Introduction
The purpose of the conference was to analyze and discuss the findings of this research
so that key initiatives to advance business excellence within the region might be agreed
upon. In addition, the conference sought to help member countries obtain a common and
clear understanding of the issues facing the region as a whole. It also sought to assist
member countries to develop specific strategies or actions to address business excellence-
related issues in their own country.
1.2 DEFINITIONS
Adopter: For the purpose of this report, an adopter is an organization that has undergone at
least one assessment (either self-assessment or external assessment) of its performance
using a business excellence framework.
Business Excellence Framework: A framework used for national quality award
assessments. This assumes that it follows a similar design to the Baldrige and EFQM
excellence models.
– 5 –
2. RESEARCH METHODOLOGY
The research methodology consisted of:
1. An online survey to obtain responses from organizations with some experience in
business excellence (from early adopters to award winners) in five APO countries.
2. Workshops to:
a) promote the survey and assist participating companies to complete it.
b) obtain in-depth feedback on “business excellence”. This to be achieved by
dividing workshop participants into small discussion groups of four to eight
people; they would then discuss key business excellence issues and present their
views back to the whole workshop.
3. Interviews with senior managers mostly Chief Executive Officers (CEOs) of
award winners.
Table 2.1 describes the research methodology and project timeline.
Table 2.1 Research Methodology and Project Timeline
Date Tasks Completed
8 August 2009
Official start date of project. Work began to design a
template of potential survey questions.
18 August 2009
The template survey was sent to the Regional Steering
Committee for comment and agreement on the broad areas to
investigate and the questions to ask.
24 August 2009
Feedback obtained on template survey.
31 August 2009
Draft survey designed and sent to the Regional Steering
Committee and the APO for comment.
5 September 2009 Feedback obtained on draft survey.
8 September 2009 Final survey designed.
8 September 2009
Preparation work began for the workshops, discussion
groups, and interviews.
10 September 2009
Countries were sent the final survey (in English) and
translation of the survey began. The survey was translated
into Chinese, Japanese, and Thai.
14 September 2009
Online English version of survey implemented.
19 September –
2 October 2009
The survey was promoted and workshops were undertaken in
India, Japan, ROC, Singapore, and Thailand:
India: 21 – 23 September, 6 discussion groups at
workshop, 3 award winner interviews
Singapore: 24 – 25 September, 4 discussion groups at
workshop, 3 award winner interviews
Thailand: 26 – 28 September, 4 discussion groups at
workshop, 3 award winner interviews
(continued on next page)
– 6 –
(continued from previous page)
19 September –
2 October 2009
ROC: 2930 September, 4 discussion groups at
workshop, 1 award winner interview
Japan: 1 – 2 October, 3 discussion groups at workshop, 3
award winner interviews
Participants at the workshops and interviews were senior
management members that had a good understanding of the
business excellence approach of their organizations,
including the impact of that approach on organizational
performance. The survey included the following instructions
for completion: “The survey should be completed by a
person (or team of people) that has a good understanding of
your company’s business excellence approach and its impact
on your company’s performance. This person(s) is likely to
be a member of your senior management team or has
obtained the views of these people when completing the
survey.”
28 September 2009
Chinese, Japanese, and Thai versions of the online survey
implemented.
2 October
20 November 2009
NPOs encouraged workshop participants — and others that
could not attend the workshop — to complete the online
survey.
20 November 2009
Close off of online survey. In total, 74 companies from the
following countries completed the survey: India (27), Japan
(10), ROC (6), Singapore (19), and Thailand (12).
20 November 2009
Work began on preparing a preliminary report and
presentation for the Conference on Quality Award Systems.
15 – 18 December 2009
Conference on Quality Award Systems held in Bangkok,
Thailand. After reviewing the preliminary report and
listening to Dr. Robin Stephen Mann’s Findings on Business
Excellence presentation, participants reached agreement on
the key business excellence priorities for the region.
Representatives from the following countries attended the
conference: Republic of China, Fiji, India, Indonesia, Islamic
Republic of Iran, Japan, Malaysia, Mongolia, the Philippines,
Singapore, Sri Lanka, Thailand, and Vietnam. Supporting
resource persons were Hans Cornelis van Beek (the
Netherlands), Dr. Robin Stephen Mann (New Zealand), C.V.
Jagadish (Singapore), Thomas E. Schamberger (the United
States), and David Spong (the United States).
1 January 2010
Work began on preparing the final report, entitled Impact of
Business Excellence/Quality Awards on Enterprises.
1 March 2010
Draft report completed.
1 June 2010
Final report completed.
August 2011
Public release of report on APOs website.
Conclusion
– 7 –
3. FINDINGS (AND POTENTIAL ACTIONS)
This section summarizes the findings from the survey, discussion groups, and interviews
of award winners. These findings were presented by Dr. Robin Stephen Mann at the
Conference on Quality Award Systems. Copies of the full survey results and discussion
group notes are presented in Appendices A and B.
The findings are divided into the following sections:
Impact of Business Excellence
Design of Business Excellence Frameworks
Awareness of Business Excellence
Application of Business Excellence
Business Excellence Awards
For each of these areas, the Strengths (positive points from research findings) are
shown first, followed by the Areas for Improvement (negative points from research
findings), followed by a list of Potential Actions to address the areas for improvement.
N.B.: the Strengths, Areas for Improvement, and Potential Actions were proposed by Dr.
Robin Stephen Mann following analysis of the research data. These were then reviewed by
the conference participants and amendments made.
3.1 IMPACT OF BUSINESS EXCELLENCE
This section presents the findings on the value and impact of business excellence (BE). In
particular, it considers whether BE is beneficial, and if it is relevant for long-term
competitiveness and sustainability.
3.1.1 Strengths (Positive Points from Findings)
More than 90% of surveyed companies improved their BE scores since their first
assessment. This indicates that BE leads to improved BE scores.
On average, the companies surveyed improved their performance from “average”
performance in their industry before their first BE assessment to “above average”
performance. This performance improvement was indicated for all of the following
business enablers: leadership, strategic planning, measurement, analysis and
knowledge management, customer focus, workforce focus/people management, and
process management. It was also indicated for the following business results: product
and service results, customer-focused results, financial and market results, workforce-
focused results, process effectiveness results, leadership results, and social
responsibility results.
83% of surveyed companies believed that BE was “very important” or “essential” to
giving them a competitive advantage.
59% of surveyed companies believed that BE was responsible for their systems and
performance being “significantly better” than they would have been otherwise.
– 8 –
Findings (and Potential Actions)
All surveyed companies expected sales, productivity, and profitability to grow over
the next year and into the future; those companies with the highest levels of BE
maturity indicated the highest growth.
3.1.2 Areas for Improvement (Negative Points from Findings)
38% of surveyed companies believed that their systems and performance were
“slightly better” and 3% “no better” since beginning a BE approach. There is an
opportunity for these companies to obtain a better outcome from BE.
40–50% of surveyed companies did not measure their investment or returns from BE.
3.1.3 Potential Actions to Address the Areas for Improvement
Companies and countries should continue to invest in BE. International and Asian
data supports the case that BE increases the likelihood of long-term competiveness.
Conduct an in-depth study to: (a) identify key success factors in those companies that
have experienced high returns of investment (major benefits) from BE; (b) identify the
problems/challenges companies have faced that have experienced low returns of
investment (minor benefits). To find reasons for both (a) and (b), a detailed analysis of
the survey data or in-depth case studies is required.
Educate BE adopters on how to measure return on investment using hard data.
Measuring BE-related initiatives and their success may help companies to obtain a
higher level of buy-in to BE.
3.2 DESIGN OF BUSINESS EXCELLENCE FRAMEWORKS
This section presents the findings relating to the design of BE frameworks. In particular, it
considers whether the frameworks are relevant to current business needs and what
innovations/changes to the frameworks are required.
3.2.1 Strengths (Positive Points from Findings)
83% of surveyed companies were “very confident” or “extremely confident” that the
BE frameworks provide a reasonably accurate assessment of BE and, at most, only
minor changes to the frameworks are required. (This finding was also supported by
survey results which showed that BE appeared to help companies equally across all
the BE criteria; this indicates that the frameworks are balanced.)
82% of surveyed companies were “very confident” or “extremely confident” that the
BE frameworks are good frameworks for assessing sustainable competitiveness and,
at most, only minor changes to the frameworks are required.
On average, BE was considered as “very important” to surveyed companies in helping
them to achieve their 15 most common long-term goals. In addition, BE was rated as
of more than “moderate importance” for helping the surveyed companies to achieve
each of the 15 most common long and short-term goals.
The discussion groups agreed that the design of the BE frameworks is relevant in
today’s business world, and that the frameworks helped companies to address the
major current and emerging challenges facing businesses.
– 9 –
Findings (and Potential Actions)
3.2.2 Areas for Improvement (Negative Points from Findings)
Of the most common long-term goals, BE was least helpful in assisting surveyed
companies to meet the following:
business model changes,
international market growth, and
succession planning and recruitment.
However, even for these, BE was considered as of more than “moderate importance”
in helping companies to reach their goals.
Of the most common short-term goals, BE was least helpful in assisting surveyed
companies to meet the following:
market growth within the country and
fiscal accountability and financial management.
However, even for these, BE was considered as of more than “moderate importance”
in helping companies to reach their goals.
When asked a specific question on innovation, 70% of award winners indicated that
the frameworks should have an increased focus on it (this view was reinforced by
some supporting written comments). However, when presented with the “innovation
goal” in comparison with other goals, the respondents did not identify that the
frameworks were lacking in this area.
3.2.3 Potential Actions to Address the Areas for Improvement
Researched companies acknowledge that the frameworks are good models for BE and
sustainable competitiveness; therefore, a major review or revision of the frameworks
is not recommended.
Minor modifications to the frameworks may be required to provide greater assistance
to companies with goals related to: business model changes, international market
growth, market growth within the country, succession planning and recruitment, fiscal
accountability, and financial management.
In future revisions of the frameworks, it is recommended that the core concepts and
values of BE are emphasized and their relationship with the frameworks is made more
explicit, as in the EFQM model (refer to Appendix C, slide 2 for further information).
This design related action will help to address areas for improvement highlighted in
Section 3.3.2 on “Awareness” concerning a lack of understanding of business
excellence.
The role of “Innovation” in business excellence should be explained more clearly, as
some companies do not understand how it is reflected in the frameworks. In particular,
there may be a need to clarify the definition of “Innovation” in the BE frameworks or
emphasize the role and importance of the core concepts and values of BE of which
innovation is an integral part.
Elaborate or revise the guidance documents to make the concept of BE more easily
understood.
10
Findings (and Potential Actions)
3.3 AWARENESS OF BUSINESS EXCELLENCE
This section presents the findings concerning companies’ awareness of BE. It considers
the reasons why companies decide to follow a BE path, as well as the effectiveness of
national productivity organizations in raising awareness of BE.
3.3.1 Strengths (Positive Points from Findings)
97% of surveyed companies believed that BE frameworks can be used by any type of
organization to enhance their management systems and improve performance.
97% of surveyed companies understood that BE frameworks are built on a set of core
values and concepts.
The most important reason indicated for a company to use a BE framework was to
become world class; therefore, the frameworks are viewed as ways of raising
performance to world-class levels.
The second most important reason indicated for a company to use a BE framework
was a decision by the CEO. This indicates how important it is for BE administrators to
promote BE to key decision makers within a company.
The surveyed companies indicated that the most beneficial BE activities currently
provided to generate awareness were:
the marketing of BE to CEOs and BE awards at the national level,
efforts to raise the profile of the BE award, and
workshops/training in BE.
3.3.2 Areas for Improvement (Negative Points from Findings)
34% of surveyed companies believed that the prime purpose of a BE framework is to
assess a company’s management systems and performance so that an award can be
given to the best company.
25% of surveyed companies indicated that they did not understand the meaning of BE,
while 36% indicated that the benefits from BE are not clear. Discussion groups also
emphasized these points; they also revealed that companies do not understand how BE
differs from other approaches.
60% of surveyed companies indicated that winning an award was of “moderate” or
“essential” importance to them when making their decision to follow a BE path. (This
finding is highlighted as a potential area for improvement, since it indicates that many
companies might be pursuing an award rather than focusing on sustaining excellence
within their company.)
Discussion group participants thought that BE was not positioned as an attractive
option, particularly for SMEs, as it appeared too complex and long-term, and the
benefits were not clearly articulated.
The surveyed companies indicated that the three awareness activities on which BE
administrators should give highest priority were:
marketing of BE to CEOs/senior managers,
workshops/training in BE, and
raising the profile of the national BE award.
11
Findings (and Potential Actions)
3.3.3 Potential Actions to Address the Areas for Improvement
BE should not just be marketed as “BE” or “continuous improvement”. BE
frameworks help companies to improve in a multitude of ways; therefore, marketing
materials should reflect this. In particular, BE should be promoted as an overarching
framework within which other business initiatives fit.
More education on BE frameworks is required to emphasize that they are assessment
frameworks, and that companies should focus more on embedding the core values and
concepts of excellence within their companies.
More resources should be directed towards promoting BE to CEOs and senior
managers, and showing how it can add value to businesses (both in the short-term and
long-term).
More thought should be given as to how to promote BE to SMEs, so that it is seen as
practical and beneficial in the short and long-term. For example, through the
development of a simplified BE publication which describes the awards criteria in
business-friendly language.
Countries need to learn from each other about how to raise the profile of the awards
(in some countries, the awards already have a high profile). Awards are a key
mechanism for raising the profile of BE and maintaining the commitment of current
adopters and award winners. However, when promoting the awards, care needs to be
taken to ensure that the awards themselves do not become the main goal (as only a
few companies can win an award). The main focus should be to attract a large number
of companies to embark on a journey of BE.
There are a broad range of interventions that can be undertaken to increase awareness
of BE. These include:
promotion of BE via websites
marketing of BE to CEOs/senior managers
marketing of BE to managers/employees
obtaining the assistance of assessors to promote BE
obtaining the assistance of companies that already use BE to promote BE
conferences on BE
workshops/training in BE
presentations from award winners
press releases on BE
access to easy to understand publications that explain BE and its benefits
encouraging schools to promote and teach BE to their students
encouraging tertiary institutions to promote and teach BE to their students
encouraging industry/membership-based associations to promote BE to their
members
encouraging government institutions to promote and use BE
having BE Awards at the local level (by city or area of a country)
raising the profile of the national BE award
All BE administrators should consider which interventions will bring the largest
increases in awareness in the short and long-term and design and implement an
appropriate awareness plan.
12
Findings (and Potential Actions)
BE administrators are encouraged to exploit their existing networks and involve many
stakeholders (public and private sector) to devise and implement an awareness plan.
Involving stakeholders has been a key success factor for those countries with a high
level of BE awareness.
It is recommended that BE Administrators regularly measure levels of BE awareness
to see if their interventions are having success.
3.4. APPLICATION OF BUSINESS EXCELLENCE
This section presents the findings on how companies try to improve their performance
through the application of BE core values and concepts. It considers how companies use
the BE criteria, the main barriers to BE, and how effective NPO services are at helping
companies to obtain the most benefit from BE.
3.4.1 Strengths (Positive Points from Findings)
BE is helping companies to address a wide variety of issues (supply chain
management, company growth, governance, and continuous improvement); this leads
to a wide range of benefits.
Between 5065% of surveyed companies were serious about BE, as demonstrated by
the percentage that:
undertake assessments every year or two years,
have a culture of excellence embedded within their systems,
have the full involvement of their senior managers, and
have a team of people working full-time on BE initiatives.
The surveyed companies indicated that the most beneficial BE activities currently
provided to help companies improve were:
BE awards at the national level,
BE awards at the local level,
BE assessor training courses, and
Workshop /seminars in BE.
All BE administrators participating in the study had particular services that have been
very successful in helping companies to improve.
3.4.2 Areas for Improvement (Negative Points from Findings)
Of the surveyed companies:
38% lack understanding of how to develop a BE culture
30% lack time to devote to BE
29% lack resources to devote to BE
26% lack opportunities to learn from other companies
The surveyed companies (almost 50%) indicated that the highest priority application
activities that the country’s BE administrator should focus on providing or improving
were:
a website of BE information (e.g., showing best practice case studies, examples
of BE applications, types of BE assessments that can be used, benchmarks,
descriptions of business improvement tools and techniques, etc.)
13
Findings (and Potential Actions)
publications on BE.
Discussion groups from all countries emphasized that there was a demand for
benchmarking data, best practices, and best practice sharing by BE category, sector,
and between countries.
Discussion groups from all countries requested increased government assistance,
either to reward companies that invest in BE or to provide federal support so that more
BE services could be provided to companies.
Discussion groups identified a number of areas for improvement; these include
making BE accessible to SMEs and providing simplified frameworks and assessment
tools.
3.4.3 Potential Actions to Address the Areas for Improvement
Training should be provided to help companies understand how to develop a BE
culture. For example, experiences or best practices might be shared about how
companies have developed a BE culture or improved performance in the various BE
categories, highlighting how these practices relate to BE core values and concepts.
Training should be targeted at assessors, consultants, managers, and SMEs.
Particular thought should be given to involving CEOs and senior managers in training
and networking.
Administrators (or the APO as a whole) should provide access to more BE-related
information through a website and/or publications. For example, showing best practice
case studies, examples of BE applications (demonstrating the variety of ways that BE
has helped companies), the types of BE assessments that can be used, benchmarks,
and descriptions of business improvement tools and techniques.
More opportunities for companies to learn from each other should be provided. For
example, through conferences, seminars, workshops, sharing sessions, exchange
schemes, and study tours. These opportunities should be particularly aimed at CEOs,
managers, administrators, and assessors.
A wide range of interventions can be undertaken to help companies along a BE
journey. These include:
publications on BE, which could present best practice case studies, examples of
BE applications, types of BE assessments that can be used, benchmarks, and
descriptions of business improvement tools and techniques
a website of BE information, which could present best practice case studies,
examples of BE applications, types of BE assessments that can be used,
benchmarks, and descriptions of business improvement tools and techniques
copies of BE submission documents from award winners
industry-specific BE guides to explain BE in terms relevant to the industry
best/good practice tours
conferences on BE
workshops/seminars in BE
BE assessor training courses
a certified course of training in BE (i.e. a diploma or masters degree)
train-the-trainer courses (for assessors/consultants)
networking meetings for BE users
networking meetings for CEOs/senior managers of BE users
14
Findings (and Potential Actions)
online BE forums/discussions
BE self-assessment tools provided as paper copies
BE self-assessment tools: online/software version
BE assessments facilitated by consultants
BE awards at the national level
BE awards at the local level (by city or area of a country)
BE mentoring (access to BE assessors/experts for advice)
access to BE consultants for advice and assistance
opportunities for sharing and learning from companies in other countries
benchmarking services and consulting (activities to learn from best practices)
additional frameworks, guides and awards that stem from BE and focus on
specific topics such as corporate responsibility, knowledge management,
environmental sustainability, and leadership
All BE administrators should consider which interventions will be of the greatest help
to companies within their country. BE administrators are encouraged to learn from the
experiences of other administrators.
In particular, interventions that meet the needs of SMEs should be considered (for
example, simplified BE frameworks or assessment tools).
Continuing to involve and help award winners is important; this will enable award
winners to sustain their level of excellence and become role models for other
companies.
It is recommended that BE Administrators regularly measure levels of BE use to see if
their interventions are successful.
3.5 BUSINESS EXCELLENCE AWARDS
This section presents the findings on how companies are recognized for high levels of
performance. It considers the profile of the BE awards, and the effectiveness of the awards
process in recognizing outstanding companies.
3.5.1 Strengths (Positive Points from Findings)
71% of surveyed companies indicated that the current awards process represents
“good” or “excellent” value for the time/resource investment of applicant companies.
The surveyed companies indicated that the most beneficial BE award activities were:
award ceremonies,
guidebooks to explain the BE framework, and
senior assessor/training instruction.
On average, surveyed companies that had won awards experienced “moderate” to
“major” benefits in terms of reputation, employee satisfaction, brand image, customer
satisfaction, and financial benefits.
77% of surveyed companies that had won an award increased their focus on BE after
winning an award.
15
Findings (and Potential Actions)
3.5.2 Areas for Improvement (Negative Points from Findings)
66% of surveyed companies indicated that the profile of the BE award is “above
average”. However, only 7% believed the profile was high enough for it to be
considered the country’s premier award.
There were mixed views about whether the process for applying and assessing
companies for a BE award should be changed. 27% of surveyed companies responded
that there should “no” or “minor” changes, 22% wanted “minor” to “moderate”
changes, 25% wanted “moderate” changes, and 25% wanted “moderate” to “major
changes”.
The surveyed companies (approximately 50%) indicated that the highest priority
award activities for improvement were:
feedback reports to the applicant,
publicity surrounding the awards,
guidelines and assistance for potential applicants on submitting an awards
application, and
assessor training.
Discussion groups suggested that there might be a need for a wider variety of awards
for different sectors, different levels of BE maturity, and, in particular, for SMEs.
3.5.3 Potential Actions to Address the Areas for Improvement
Countries need to learn from each other about how to raise the profile of the awards
(in some countries, the awards have a high profile).
Countries need to review their processes for applying and assessing companies for a
BE award. A sizeable proportion of companies believe that these processes should be
changed/improved:
feedback reports to the applicant
publicity surrounding the awards
guidelines and assistance for potential applicants on submitting an awards
application
assessor training
There is a wide range of award-related services such as:
launch events for the award
the assessor selection process
assessor training
senior assessor training/instruction (e.g., for the leader of an evaluation team)
guidelines and assistance for potential applicants on submitting an award
application (to obtain good submissions)
a guidebook to explain the BE framework
support provided to ensure assessor teams follow due process (e.g., additional
mentoring or use of observers)
eligibility/selection criteria and a process to determine which applicants are
considered for an award (this may involve a short-listing process)
site visits to award applicants
a consensus meeting/process to discuss and agree on the feedback to give to
applicants
feedback reports to the applicant (presentation and content)
16
Findings (and Potential Actions)
judging panels
award ceremonies
publicity surrounding the awards
opportunities for applicants and assessors to suggest improvements to the awards
process
general management of the awards process.
All BE administrators should consider which services to improve and then learn from
other countries that are strong in these areas.
Countries should consider providing a wider variety of awards for different sectors,
different levels of BE maturity, and for SMEs. This may increase overall interest in BE.
Conclusion
17
4. PROPOSED BUSINESS EXCELLENCE INITIATIVES
FOR ASIA
This section of the report presents the business excellence initiatives recommended for
APO support. These initiatives were proposed by the conference participants after they
had considered which of the potential actions in Section 3 were most appropriate for the
APO to support as regional initiatives.
A voting process and open debates were used to refine an initial list of initiatives (see
Table 4.1) to a final list for the region (see Table 4.2). In this process, the conference
participants considered the research findings, the views of a CEO panel forum, an
administrator’s panel forum, and the views of the various experts.
Table 4.1 Initial List of Potential Initiatives
Potential Projects on Impact
1. Conduct further research on Impact via
(a) or (b):
(a) Conduct an in-depth study to: i)
identify key success factors in those
companies that have experienced
high returns of investment (major
benefits) from BE and ii) identify
the problems/challenges companies
have faced that have experienced
low returns of investment (minor
benefits).
(b) In-depth research on the impact of
BE on organizational performance,
using hard data similar to the
European and US studies
comparing BE companies with
benchmark companies.
2. Repeat the recent APO research study
periodically, but involve more
countries and with less questions to
increase response time.
3. Develop a booklet to educate BE
adopters on how to measure returns on
investment using hard data.
Potential Projects on Awareness
1. APO could produce marketing material
to promote the national awards. This
could show the benefits of national
awards and then provide information
on the different national programs.
Potential Projects on Design
1. The development of an Asian BE
Model for all Asian countries to follow.
Potential Projects on Application
1. Develop a publication showing how to
implement BE.
2. Set up an award winners forum
enabling CEOs of award winners to
meet.
3. Set up a database of best practice
experts accessible to member countries.
4. Set up a BE Consultants Forum that
supports BE consultants.
5. Develop an APO Benchmarking/BE
Database/Website. For example,
showing best practice case studies,
examples of BE applications
(demonstrating a variety of ways BE
has helped companies), the types of BE
assessments that can be used,
benchmarks, and descriptions of
business improvement tools and
techniques).
6. APO could support the training of
mentors for early adopters.
7. APO could support networking/best
practice sharing events between
countries, exchange visits, and study
tours.
8. An APO BE Conference could be held
each year in a different country.
(continued on next page)
18
Proposed Business Excellence Initiatives for Asia
(continued from previous page)
2. APO could develop a guidebook to
explain in a simple manner (using
business language) what the BE
framework/concepts are. This book to
be designed so that it is an easy read for
CEOs and SMEs.
3. APO could support national
conferences that promote BE to CEOs
(e.g., by arranging for APO-designated
experts to give presentations).
4. APO support for a publication of case
studies from award winners in Asia,
describing their BE journey and the
benefits obtained.
5. APO could support a publication of
case studies showing how BE has
helped companies in a variety of ways
(e.g., on governance, supply chain
management, growth, culture change,
managing financial risk). This will help
to show that BE can meet many needs.
6. BE training module developed for
university students to use throughout
Asia.
Potential Projects on Awards
1. APO could support an assessors’
exchange program.
2. APO could support the development of
a training manual for assessors,
consultants and managers.
3. APO could support a train-the-trainer
program, which will ensure trainers
provide good training to assessors.
4. APO could lead BE assessment training
programs to develop competencies for
assessors.
5. Development of an APO-led
certification scheme for BE award
examiners and assessors.
6. Development of an accreditation
scheme to certify each administrator’s
BE award scheme.
7. Regional award for national award
winners.
Potential Projects for Capability
Building for Administrators
1. Best practices and benchmarking study
missions for administrators to
understand how other administrators
run their programs.
2. A survey to be undertaken to
investigate how administrators run their
BE programs. For example, benchmark
services provided, resources used,
number of assessors trained, how they
appoint judges, etc.
3. Development of a guidebook for
administrators on how to administer a
national BE strategy to bring together
the best practices of regional and
international administrators. This will
show the types of services that can be
offered, the challenges faced, how they
can be overcome in terms of resourcing
and running awards programs, and the
measures of success that can be used.
4. An alumni for those that have
participated in APO activities. An APO
society.
5. Use APO video conference facilities
for better connections between
administrators.
19
Proposed Business Excellence Initiatives for Asia
Table 4.2 Final list of Potential Initiatives and Allocation of Votes
1. Develop a business excellence training manual for assessors and consultants and
deploy the manual. 21 votes
2. Develop a website of benchmarking, best practice, and business excellence
information to serve the needs of companies. 16 votes
3. Provide capability-development assistance to business excellence award
administrators. In particular, assist administrators of immature or non-existent award
systems to move to an advanced stage of maturity. This will likely necessitate a
guidebook, the sharing of best practices between administrators, and mentoring by
advanced administrators. 11 votes
4. Encourage and/or support networking/best practice sharing between countries
through events, visits, and forums. 9 votes
5. Repeat APO research on business excellence at regular intervals (with some
modifications, such as using hard data to measure the impact of business excellence).
7 votes.
6. Collect and publish case studies on best practices, as well as on how business
excellence is helping companies to improve. 2 votes
N.B.: The “Development of an Asian BE model” was initially in the final list, but then
omitted after a lengthy discussion.
The challenge for the future is for the APO, Center of Excellence (SPRING Singapore
is the designated COE for business excellence in the region), and the Regional Steering
Committee for Advancing National Quality Award Programs to develop a clear plan of
action for these initiatives, and to see whether all or a few can be undertaken.
Some of the initiativessuch as the training manualhave already been started by
the COE, while others such as networking/best practice sharing between countries
are already performed by the APO to some degree. Others, such as the website, are a key
priority for companies, but may require substantial investment unless technology that is
already used within the APO countries (and globally) can be integrated together. The
proposal for a, “publication of case studies on how business excellence has helped
companies and the sharing of best practices,” had few votes. However, this is probably due
to it being a task that would fit within the larger project of developing a benchmarking and
best practice website.
The “capability development of administrators” initiative is of critical importance, as
the administrators can make or break business excellence within a country. It was evident
that some administrators are at an early stage of maturity, so targeted assistance and
guidance needs to be available for them.
The initiative to repeat the APO survey in two years time is sensible, since it would
enable the impact of the various interventions by the APO, COE, and award administrators
to be measured. The survey could also be expanded to include other Asian countries.
While some initiatives that have a regional-wide impact require APO leadership and
funding, it should also be recognized that individual APO members can take the lead on
some regional initiatives without APO funding. In particular, it was pleasing that, at the
20
Proposed Business Excellence Initiatives for Asia
conference, participants agreed there should be an annual “Regional Asian Business
Excellence Conference”, and that this could be self-funded. ROC volunteered to host the
conference in 2010. Such a conference will not only increase the awareness and use of
business excellence within Asia, but can also serve as a platform at which the various
award administrators meet on an annual basis. Meeting regularly and at least yearly
will be of major assistance to award administrators; it will enable them to learn from each
other, develop a stronger network, and improve the overall capability of administrators.
Conclusion
21
5. REVIEW OF THE RESEARCH APPROACH
The projectconsisting of the research phase (i.e., survey, discussion groups, and
interviews) and development of initiatives (at the conference) was undertaken in five
months. In this period of time, a large amount of information was collected that helped in
the understanding of business excellence, its application, and impact within Asia.
The research was probably the most extensive to date on business excellence in Asia.
However, there were limitations with the research approach that should be considered for
the future:
The short time frame led to a smaller number of surveys being completed than
desired. This was probably due to two reasons. First, award administrators did not
have enough time to promote and encourage organizations to complete the survey.
Second, the survey was too long; there had not been enough time to design the
survey and gain a consensus of opinion as to which questions to include or exclude.
The initial target was for a minimum of 20 participant organizations per country.
There were 27 surveys completed in India, 10 in Japan, 6 in ROC, 19 in Singapore,
and 12 in Thailand. This means that, within the sample, there is a bias of survey
responses from India and Singapore.
Due to the low survey response rate in some countries, it was decided not to
undertake country-to-country comparisons.
Research was focused on five countries; these countries were some of the most
advanced in business excellence in Asia. Therefore, the data is not representative
of the status of business excellence throughout the whole of Asia, but serves to
identify the successes and challenges facing organizations that have adopted
business excellence in those five countries.
The survey focused on business excellence adopters and award winners with 57%
of companies considering themselves to be at a competent to advanced stage of
business excellence maturity, 30% at a moderate stage, and only 13% at an early
stage. In the future, it may be useful to extend the survey to those organizations
that are no longer following a business excellence path and/or to more
organizations that are just starting their journey or are not interested in business
excellence. Extending the survey to these groups might lead to greater insights into
how to attract companies to follow a business excellence path and/or help
companies sustain their journey.
Most of the research data and information was perception based; it was obtained
through the opinions of senior managers. For a more accurate assessment of the
impact of business excellence, an established research approach, which has been
used to measure the impact of the Baldrige framework (in the United States) and
the EFQM excellence model (in Europe), could be used. This approach involves
the analysis of financial reports of award winners. However, the research would be
expensive, as it would require the translation of financial reports and an
understanding of the various financial reporting systems in Asia.
The aforementioned research limitations should not deflect from what was a
successful research project. While it would have been better to have a larger response rate
to the survey from some countries, the effect of this has been minimal, since the main
22
Review of the Research Approach
purpose of the survey was to obtain in-depth feedback from a sizeable number of adopters
of business excellence irrespective of the countrythis was achieved.
In particular, the use of discussion groups and award winner interviews was highly
effective at obtaining a deep understanding of business excellence within the participating
countries. The discussion groups were of great value, as the feedback corroborated and
explained in depth the survey findings. The discussions groups also benefited the
participants (enabling companies to share experiences) and award administrators (helping
them to understand the key issues facing the success of business excellence in their
country).
As indicated in Section 4, it is recommended that the research be repeated on a
regular basis (at least every two years), and that a similar research methodology be used
(composed of a survey, discussion groups, and award winner interviews). This will enable
the status of business excellence within Asia to be tracked over time. It is also
recommended that the survey be open to all Asian countries, so as to obtain a larger and
more representative sample.
Conclusion
23
6. CONCLUSION
The research project and the Conference on Quality Award Systems have assisted the
APO and APO member countries to obtain a clearer understanding of the awareness, use,
and impact of business excellence within the region.
In terms of the research project’s initial aims, the following can be concluded:
Research aim: “To identify the performance results and outcomes achieved by
organizations that use a business excellence framework in APO countries.” This aim has
been met. A much clearer understanding has been obtained of the outcomes from business
excellence. On the whole, business excellence is perceived to have a major impact on
competitiveness and performance. This finding, which is also supported by international
research, indicates that business excellence should be encouraged within all APO member
countries.
Research aim: “To identify the relevance of business excellence for long-term
competitiveness and sustainability in the region, and to determine what (if any) changes to
the frameworks were required in terms of their design or application.” This aim has been
met. On the whole, companies believe the frameworks to be relevant for long-term
competitiveness and sustainability, and only minor changes (if any) to the design of the
frameworks are needed. The prime feedback was that there should be an effort to make the
frameworks easier to understand; the value of the frameworks needs to be more clearly
communicated.
Research aim: “To research how award-winning organizations view innovation, and
whether they consider it as being adequately reflected in the business excellence criteria.”
This aim has been met. It is evident that a large proportion of award winners do not
consider innovation to be adequately reflected in the business excellence criteria. However,
this is likely to be because the frameworks have not been adequately understood. In
particular, there appears to be a lack of understanding of innovation being an integral part
of business excellence; it is represented in the framework’s core value and concepts, and
therefore exists in all the criteria. Innovationand how it relates to business excellence
needs to be more clearly explained to assessors and users of the frameworks.
Research aim: “To identify potential best practices or opportunities for improvement in
the support services that NPOs provide to organizations on their business excellence
journey (in services ranging from increasing awareness of business excellence to award
administration services).” This aim has been met. It is apparent that companies want
simpler and easier to understand business excellence criteria, as well as more assistance
with benchmarking and learning from best practices. Awards, while important, are for
recognition and are not the prime motivator for companies. The prime motivator is to
“become world class”. Therefore, companies are focused on continuous improvement and
require support services that help them on their journey.
24
Conclusion
Once the research had been completed and the findings analyzed by APO members at
the Conference on Quality Award Systems, the following initiatives to advance business
excellence in the region were proposed:
To develop a business excellence training manual for assessors and consultants,
and to deploy the manual.
To develop a website of benchmarking, best practice, and business excellence
information to serve the needs of companies.
To provide capability-development assistance to business excellence award
administrators. In particular, to assist administrators of immature or non-existent
award systems to move to an advanced stage of maturity. This will likely
necessitate a guidebook, the sharing of best practices between administrators, and
mentoring by advanced administrators.
To encourage and/or support networking/best practice sharing between countries
through events, visits, and forums.
To repeat the APO research on business excellence at regular intervals (with some
modifications, such as using hard data to measure the impact of business
excellence).
To collect and publish case studies on best practices, as well as on how business
excellence is helping companies to improve.
It is now the role of the APO, the COE, and the Regional Steering Committee for
Advancing National Quality Award Programs to develop a clear plan of action for these
initiatives, and to see whether all or a few can be undertaken.
Conclusion
25
APPENDIX A: SURVEY REPORT ON THE IMPACT OF
BUSINESS EXCELLENCE / QUALITY AWARDS ON
ENTERPRISES
This report shows the findings from a survey that was completed by companies in five
Asian countries from September November 2009. The survey formed part of a research
project commissioned by the Asian Productivity Organization (APO) to identify the value
and impact of business excellence frameworks (otherwise known as quality award
frameworks).
In total, 74 companies from the following countries completed the survey:
India (27), Japan (10), ROC (6), Singapore (19), and Thailand (12).
The report is structured into the following sections:
Section 1 – Company profile
Section 2 – Business excellence profile
Section 3 – Impact of business excellence
Section 4 – Design of business excellence frameworks
Section 5 – Awareness of business excellence
Section 6 – Applying a business excellence approach
Section 7 – Business excellence awards
Section 8 – Improvement tools
Section 9 – Questions to national business excellence award winners.
Within each section the survey question is shown, followed by the aggregated
responses in data and graphical format. Comments by the respondents are numbered from
1 – 74 with the numbers representing the different companies that participated. Comments
received from Indian companies are numbered I1I27, Japanese companies J28 J38,
Singapore companies S38S56, ROC companies TA57TA62, and Thailand companies
TH63 – TH74.
Throughout the survey the terms “business excellence award” and “business
excellence framework” are used. These terms are interchangeable with “quality award”
and “quality award framework”, as these terms are used within some countries.
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
SECTION 1 - COMPANY PROFILE
If the survey is being completed by a business unit, substitute the word “business unit” for
“company” in the following questions.
1.1 What is your company’s major business activity?
Tick the one that applies
A
Agriculture, Forestry, and
Fishing 1% J Communication Services 1%
B
Mining
0%
K
Finance and Insurance
9%
C Manufacturing 44% L
Property and Business
Services
4%
D
Electricity, Gas, and Water
Supply
4% M
Government Administration
and Defense
1%
E
Construction
1%
N
Education
3%
F Wholesale Trade 4% O
Health and Community
Services
1%
G Retail Trade 3% P
Cultural and Recreational
Services 1%
H
Accommodation, Cafes, and
Restaurants
1% Q Personal and Other Services 1%
I Transport and Storage 3% R Other please specify: 16%
Figure 1.1: Business activity distribution expressed as a % (Responses = 74)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
1.2 Which sector does your company operate in?
Tick the one that applies
A Public Sector 6
B Private Sector 65
C Not for Profit or Community 2
Figure 1.2: Distribution of organizations based on sector (Responses = 73)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
1.3 Please provide the following data for your last financial year:
Number of employees:
Figure 1.3a: Organization size expressed as a % (Responses = 74)
Revenue in USD:
Figure 1.3b: Annual revenues expressed as a % (Responses = 58)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
SECTION 2 - BUSINESS EXCELLENCE PROFILE
2.1 Which statement most accurately describes your knowledge of business
excellence?
If the survey is being completed by a team, substitute “we” for “I”.
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. 0%
B
Basic understanding – My company has undertaken an assessment against
a business excellence framework and I was (we were) involved in the
process.
10%
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.
25%
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.
65%
Figure 2.1: Knowledge of business excellence expressed as a % (Responses = 71)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.2 Do you agree or disagree with these statements:
If the survey is being completed by a team, record the most common viewpoint.
Tick the one that applies
Agree Disagree Don’t know
A
Business excellence is different than
Total Quality Management.
47% 45% 8%
B
Business excellence grew from Total
Quality Management.
69% 11% 20%
C
The prime purpose of a business
excellence framework is to assess a
company’s management systems and
performance so that an Award can be
given to the best company.
34% 64% 3%
D
Business excellence frameworks can be
used by any type of organization to
enhance their management systems and
improve performance.
97% 1% 1%
E
Business excellence frameworks are
built on a set of core values and
principles. 97% 1% 1%
Figure 2.2: Perceptions on business excellence expressed as a % (Responses = 74)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.3 In which year was a business excellence framework first used to assess your
company’s performance?
Figure 2.3: First year of using a business excellence framework for assessment
expressed as a % (Responses = 69)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.4. What was your company’s business excellence score for your first assessment?
Figure 2.4a: Result of first business excellence assessment expressed
as a score achieved (Responses = 46)
Figure 2.4b: Result of first and last business excellence assessment expressed
as a score achieved (Responses = 46)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.5 Please indicate the year and type of assessments that have been conducted within
your company over the last five years. Also, please include your business excellence
assessment scores if you know them.
Tick those that apply
2005
2006
2007
2008
2009
Assessments based on your country’s business excellence framework
A
Business excellence assessment undertaken
by award assessors (this was part of an
awards application)
19 20 17 18 20
B
Business excellence assessment undertaken
by an external consultant (this was not part of
an awards application) 6 4 6 11 7
C
Business excellence self-assessment by our
staff
8 9 10 13 12
Assessments using a business excellence framework designed by your company
D
Business excellence self-assessment by our
staff 14 18 22 20 17
E
Other please specify:
F
What score did you achieve?
Note: The data in the table above shows the number of companies that used each type of
assessment.
Figure 2.5: Business excellence assessment types expressed as a number of
assessments from 2005–2009 (Responses = 63)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.6 How would you describe your company’s level of business excellence maturity?
Note “business excellence maturity” in this context refers to assessing your company’s
understanding of business excellence and how your company applies business excellence
concepts to improve company performance. Tick the one that applies
A
Awareness There is some awareness of “business excellence”, but none
of our staff have been trained in business excellence. We are not sure how
business excellence can be applied within our company.
4%
B
UnderstandingWe understand business excellence and how it can be
applied. Key members of our staff have attended training courses in
business excellence.
9%
C
ProgressingWe have undertaken at least one assessment against a
business excellence framework and taken steps to improve our systems and
performance. Many of our staff have attended training courses in business
excellence.
30%
D
Competence My company has undertaken a few business excellence
assessments, refined its assessment method, and can demonstrate improved
performance as a result of our business excellence approach. My company
uses the framework as a reference model to guide its improvement efforts.
Most of the company’s staff are aware of the framework and use it as a
means to assess and improve the area of the business that they work in.
43%
E
AdvancedThe business excellence principles on which the frameworks
are based are embedded within my company. My company has undertaken
many assessments, refined its assessment method, and can demonstrate
improved performance year on year as a result of our business excellence
approach. All of our company’s staff are aware of the framework and
follow business excellence principles in their daily work.
14%
Figure 2.6: Business excellence maturity level expressed as a % (Responses = 74)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.7 For 2008, estimate the time spent by people within your company on the following
activities:
No. of
people
involved on
average per
company
Person-
hours per
person on
average per
company
Total
person-
hours on
average per
company
A
Business excellence education and training
(e.g., attended a business excellence
training course, or attended training to
become an assessor)
228 27 3143
B
Business excellence awards application
(e.g., preparing an awards submission
document, preparing your people for a site
visit by assessors, etc.)
34 83 2056
C
Business excellence self-assessment (e.g.,
designing and administering the self-
assessment, participation of staff, etc.)
912 33 3443
D
Action planning resulting from an
assessment (e.g., meetings to discuss
assessment feedback and developing
action plans to address opportunities for
improvement) Do not include time spent
on implementing the actions.
855 19 2331
Figure 2.7: Average (median) time per company spent on each type of business
excellence activity in 2008 (Responses = 63)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
2.8 Does your company measure the following?
Tick the one that applies
No Yes Don’t know
A
Its investment (in terms of time/resources) in
business excellence
51% 45% 4%
B
The returns/benefits achieved
42% 47% 11%
Figure 2.8: Measuring investment in business excellence and returns/benefits
achieved expressed as a % of responses (Responses = 73)
If your company does measure its investment or returns, please explain how it does this.
I04 We only measure investment in terms of money and man hours spent by each SBU
and corporate BE. Returns are not being measured since so many initiatives and
efforts are in place and as such separating out under BE model head is difficult.
I05 We measure investment in terms of all budgeted and actual expenses on Business
Excellence initiatives and their support. We measure returns in terms cost savings
from improvements. The non-financial benefits, though individually considered at
the project level, are not collected.
I10 We measure through Critical Success Factors and Balanced Score Cards.
I13 Each unit does measures its results.
I16 Investment of time is measured in terms of man hours spent at the senior, middle,
and junior level of management. Also, the project costs are planned and tracked.
I17 In the beginning of each year, performance targets and goals are set. We have a
meeting of Management performance review (MPR) on a monthly basis to review
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
the performance. Gaps are identified against targets and necessary action plans are
implemented to achieve targets.
I18 We measure improvements in business process, cycle, time, etc. We measure
reduction in price of non-conformance.
I22 Investment alone has been measured, with examples such as the cost of training
and cost of education.
I24 We have budgets for the following:
1. Pursuing initiatives
2. Conducting training programs
3. Award application Fee
4. Tangible Business Benefit
5. Assessor Program fee
6. Travel expenses for awareness sessions
7. Communication (posters, booklets, books, etc.)
I25 We measure through detailed Capital Proposals & Post Project Audits.
I27 BE is a Critical Success Factor Project, a Cross Functional approach with
budgeted resources, targets, and activity plans. Returns are not measured directly,
but indirectly through assessment scores and levels of recognition.
J28 We set our own assessment indicators in each category and also implement
benchmarking with other companies. The indicators include examples such as the
ratio of establishing management visions/policies, employee satisfaction ratio, the
ratio of revealing information, the ratio of energy consumption reduction, the ratio
of development of techniques/skills, the number of staff with public qualifications,
various defect rates, cost reduction ratio, labor productivity, the days needed for
settling accounts, defect rate at receiving materials, the ratio of reducing claims,
the ratio of reducing the cost of purchasing materials, the number of IT
investments, the growth of sales, operating profit ratio, the ratio of profit to
shareholders equity, the ratio of liability to borrowings, sales share, customer
satisfaction ratio, etc.
J31 As for human resource development and self-assessment activities, we measure
the investment by comparing the annual budget with actual cost. As for measuring
the return to investment, we regard the return of the activities as contributing to the
improvement in maturity of organization, but have not measured by quantitative
data
J33 1. Employee consciousness survey,
2. Global CS survey,
3. Satisfaction survey, and
4. The monitoring meeting of Balanced Scorecards (4 times a year)
J34 Resource: annual training cost- 100 million yen. Result: financial data
J35 Investment: cost for seminars and training programs. Results: numbers of trained
assessors and participants in JQA Council's training program.
J36 We implement our own self-assessment system with the participation of all the
employees. We undertake meetings with all employees in a day-trip or overnight-
trip.
J37 Customer Satisfaction, Self-Assessment Sheet
S38 We look to see if staff benefited through Personal Performance Appraisal.
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S39 Man hours and resources spent in achieving business excellence are being
monitored and reviewed periodically.
S48 We compare the management system and performance before and after BE
training and involvement.
S52 We measure through our Customer Satisfaction Index and through our business
results.
S54 We measure Performance Metrics in the area of productivity and customer
satisfaction.
TH63 We invest in terms of staff education, providing facilities and arranging working
environments to promote Quality Awards, including the announcement of
Working Teams and Ambassadors for Quality Awards.
TH65 When the processes are integrated, efficiency improves. Moreover, most of the
staff are aware of the framework and have a more systematic vision.
TH66 Measurement is done using a cause and effect relationship between the identified
performance indicators of employee participation in various participative activities,
e.g., KSS, Improvement themes, etc., and the savings achieved against the
identified improvement themes and its impact on profitability.
TH72 Brand Reputation / Public Recognition
2.9 Do you have any comments to share on Section 2?
I02 It would be useful to have a framework for measuring ROI.
I04 How to measure "returns" exactly under the BE model head is difficult to measure,
as so many other initiatives are in place. A one to one relation between
improvements and assessment in tangible terms is difficult. How scores obtained
by different companies are comparable, as complexity levels are different.
I08 The number of hours can be further segmented by 1) Top Leaders, 2) Functional
Persons, and 3) Dedicated Quality and/or Business Excellence professionals.
I10 Our unit has 10 certified Assessors, which are conducting self-assessments as well
as group unit assessments periodically. Some are conducting assessment for other
business also.
I14 Seven persons from our unit attended a business excellence training course to
become an assessor during May 2009 and July 2009.
J31 It is difficult to analyze the linkage between financial data, which fluctuates easily
according to external condition (sales, operating profit, etc.), and the return on
investment for business excellence activities. I am rather interested in whether
there is any methodology to measure the linkage between ROI for BE activities
and contribution to the business activities.
J36 Business excellence is the activity which supports the business fundamentals of
my company. We utilize it for developing common core values and an
organizational culture.
S43 it is not easy to quantify due to lack of manpower and also too many inter-
relationships.
S47 Business excellence is "seen" as a project when we prepare for the application and
assessment. Otherwise, the approach is part of what we normally do and therefore
difficult to measure.
S53 The level of involvement among the various staff is uneven. Champions tend to
devote more time, while others tend to be involved less. Therefore, the man hour
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
figures are purely estimates. 2008 happens to be the time when we prepared for
SQC, and therefore, more time was spent in preparation. The above only applies to
the regional head office. Time spent in assessing subsidiaries excluded.
TH63 Attitude and staff education are important for Business Excellence, and need
follow-up by the leader.
TH65 Our organization is under Corporate, so some areas such as HR and marketing are
in central functions. And we use cross functional teams.
TH68 We have improvement projects which return around 126 M THB, but we had this
method before using business excellence.
TH71 It would be great if someone could advise us on how to measure investments and
returns. (It might be in the guidelines)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
SECTION 3 – IMPACT OF BUSINESS EXCELLENCE
3.1 How good are your company’s practices, processes, and systems?
Indicate with a “P” how you rated in the Past before your first business excellence
assessment and with an “N” how you rate Now.
Please ensure for each row you include a “P” and an “N”. If your systems and
processes have not changed, then include the “P” and “N” in the same box.
Very
poor Below
average Average
in industry Above
average World
class
0
1
2
3
4
5
6
7
8
9
10
Practices,
processes & systems
A
Leadership
P(5.4) N(7.6)
B
Strategic
Planning
P(5.0) N(7.5)
C
Measurement,
Analysis &
Knowledge
Management
P(4.7) N(7.0)
D
Customer
Focus
P(5.5) N(7.7)
E
Workforce
Focus/People
management
P(5.2) N(7.4)
F
Process
Management
P(5.1) N(7.3)
Figure 3.1: Rating of practices, processes, and systems in the “past” and “now” expressed
as an average rating of responses (Responses = 69)
Note: 0 = very poor, 2 = below average, 5 = average in industry, 8 = above average,
10 = world class
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
3.2 How good are your company’s business results?
Indicate with a “P” how you rated in the Past before your first business excellence
assessment and with an “N” how you rate Now.
Please ensure for each row you include a “P” and an “N”. If your results have not
changed, then include the “P” and “N” in the same box.
Very
poor Below
average Average
in industry Above
average World
class
0
1
2
3
4
5
6
7
8
9
10
Business results
A
Product and
Service Results P(5.8) N(7.8)
B
Customer
Focused
Results P(5.5) N(7.7)
C
Financial and
Market Results P(6.0) N(7.6)
D
Workforce
Focused
Results P(5.4) N(7.4)
E
Process
Effectiveness
Results P(5.4) N(7.2)
F
Leadership
Results P(5.5) N(7.7)
G
Social
Responsibility
Results P(5.1) N(7.3)
Figure 3.2: Rating of business results in the “past” and “now” expressed as
an average rating of responses (Responses = 68)
Note: 0 = very poor, 2 = below average, 5 = average in industry, 8 = above average,
10 = world class
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
3.3 How important is business excellence in terms of helping your company gain a
competitive advantage for the future?
Tick the one that applies
A Not important 1%
B Some importance 4%
C Moderate importance 11%
D Very important 57%
E Essential 26%
Figure 3.3: Importance of business excellence in gaining a competitive advantage
expressed as a % of responses (Responses = 72)
3.4 As a direct result of using a business excellence approach, do you believe that
your company’s systems and performance are:
Tick the one that applies
A Significantly worse than they would have been otherwise 0%
B Slightly worse than they would have been otherwise 0%
C No different than they would have been otherwise 3%
D Slightly better than they would have been otherwise 38%
E Significantly better than they would have been otherwise 59%
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
Figure 3.4: Results of using business excellence on companys systems and performance
expressed as a % of responses (Responses = 71)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
3.5 Which of the following statements apply to your company?
You may tick more than one statement.
Tick those that apply
A We do not recommend business excellence to our customers or suppliers. 17%
B We recommend business excellence to our customers. 39%
C We recommend business excellence to our suppliers. 61%
D We actively help our customers to follow a business excellence approach
(for example, through providing training or advice on business
excellence assessments). 30%
E We actively help our suppliers to follow a business excellence approach
(for example, through providing training or advice on business
excellence assessments). 31%
F We assess our suppliers'
systems and performance via a business
excellence framework. 23%
Figure 3.5: Recommending of business excellence to suppliers and customers
expressed as a % of responses (Responses = 71)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
3.6 Please indicate your expectations concerning the following:
Tick the one that applies for each statement
Expectations
Significant
decrease
Moderate
decrease
Stay the
same Moderate
increase Significant
increase
0
1
2
3
4
5
6
7
8
9
10
Expectations (Crosstab with Q3.6
Awareness / Understanding /
Progressing in BE maturity)
Expectations (Crosstab with Q3.6
Competence / Advanced in BE
maturity)
A
Sales turnover over the
next year 7.29 7.59
B
Sales turnover during
the next 3 to 7 years
8.56 8.68
C
Productivity over the
next year
7.53 7.85
D
Productivity during the
next 3 to 7 years
8.53 8.66
E
Profitability over the
next year 7.23 7.55
F
Profitability during the
next 3 to 7 years
8.47 8.55
Figure 3.6: Sales growth and productivity expectations cross tabulated with business
excellence maturity (Question 3.6) (Responses = 74)
Note: Expectations, 0 = Significant decrease, 2 = Moderate decrease, 5 = Stay the same,
8 = Moderate increase, 10 = Significant increase
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
3.7 Do you have any comments to share on Section 3?
I04 Results are being measured. However, if results improve because of a BE model
assessment, it is difficult to explain this to top management. OFIs which are quite
generic do not point to specific improvement activities.
I06 If we adopt BE techniques appropriately and internalize BE practices, we should
do better than many competitors.
I10 Lots of Intangible Gains
I11 Since our expansion project completed last year, we are getting maximum
productivity now. An increase in production from present would be moderate, we
expect.
I14 Sales turnover & profitability decreased due to a reduction in commodity price
over the next year.
I17 A business excellence framework has helped us to improve our business
performance after implementation of assessment feedback.
I19 During the next two years our plant capacity will double.
J29 We cannot answer questions 3.1 and 3.2, because we cannot make comparisons
with other companies in the same industry.
J36 We have improved the awareness of core values of the company and our customer
focus by BE activities.
S38 New projects need a learning curve before productivity can be improved further.
S47 We do not deliberately distinguish business excellence as a separate activity.
Rather, it is part & parcel of how we do our business. Compared to the business
excellence approach, the people factor plays a major part in how we move from
the past to now.
S53 I am unable to make a comment about prior to BE assessment, as I was not with
the company then. BE was implemented as a program driven by the Japan head
office. BE initiatives are yet to be fully integrated with business. However, it has
led to notable successes & competitiveness in some subsidiaries.
TH63 A continuous improvement system is necessary for Business Excellence and to
achieve overall improvements in business results.
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
SECTION 4 - DESIGN OF BUSINESS EXCELLENCE FRAMEWORKS
4.1 What are your company’s goals, and will business excellence help your company
to achieve them?
Indicate with a tick the level of importance
How important is
business excellence in
helping your company to
reach its goals?
Only complete for the
goals that you have
ticked.
Short-term
goals (1-2
years)
Does your
company have
short-term
goals related to
the following?
Tick up to 5
that are the
most
important.
Long-term
goals (5 years
or more)
Does your
company have
long-term
goals related
to the
following?
Tick up to 5
that are the
most
important.
Not
Some importance
Moderate importance
Very important
Essential
Leadership and Social Responsibility related goals
A
Leadership & vision
B
Reputation & trust
C
Ethical behavior
D
Culture & values
E
Preparedness for disasters or
emergencies
F
Regulatory & legal
compliance
G
Fiscal accountability &
financial management
H
Seeking investment/investors
I
Business model changes
J
Organizational structure
changes
K
Involvement in the
community & society
L
Environmental/green issues
Strategy planning
M
Strategic planning
N
Action planning and
deployment process
Customer focus related goals
O
Market growth within country
(continued on next page)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
(continued from previous page)
P
International market growth
Q
Acquisitions
R
Product performance, e.g.,
quality/delivery/value
S
Service performance, e.g.,
quality/delivery/value
T
Innovation in products &
services
U
Customer satisfaction &
dissatisfaction
V
Customer retention &
relationship building
Measurement, analysis, and knowledge management related goals
W
Information management &
control
X
Knowledge management &
best practices
Y
Information technology
applications
People related goals
Z
Employee satisfaction &
dissatisfaction
A1
Employee skills, development
& training
B1
Work organization &
involvement
C1
Employee performance
management/recognition
D1
Succession planning &
recruitment
E1
Staff retention
F1
Downsizing
G1
Work environment, health,
safety & ergonomics
Process related goals
H1
Continuous improvement
I1
Design of products, services,
or processes
J1
Marketing, selling &
invoicing processes
K1
Purchasing & supplier
relationships
(continued on next page)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
(continued from previous page)
L1
Partner relationships
M1
Outsourcing
N1
Productivity gains for
manufacturing
O1
Productivity gains for our
services
P1
Cost reduction
Q1
After-sales service, warranties
& complaints
R1
Distribution channels
S1
Delivery of products/services
T1
Managing buildings,
equipment & materials
U1
Innovation in processes
V1
Technology & flexibility
Other goals? Please specify:
Figure 4.1a: Most popular short-term goals expressed as a % of responses
(Responses = 66)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
Figure 4.1b: Most popular long-term goals expressed as a % of responses
(Responses = 65)
Figure 4.1c: Importance of business excellence in helping companies to reach
the 15 most popular short-term goals (Responses = 66)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
Figure 4.1d: Importance of business excellence in helping companies to reach
the 15 most popular long-term goals (Responses = 65)
Other responses:
I07 Customer success
J33 Sales
S55 Various risks such as terrorism, diseases (SARS, Swine Flu, etc.), and fraud
TH65 Sales
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
4.2 In general, are you confident that the design of the business excellence framework
used in your country is based on sound business principles and can provide a
reasonably accurate assessment of business excellence?
Tick the one that applies
A
Extremely confident, the design is perfect
21%
B
Very confident, but the design does require a few minor changes
62%
C
Reasonably confident, but the design does require a number of changes
14%
D
Require further convincing, the design requires some major changes
1%
E
Not confident at all, the design requires a major overhaul
3%
Figure 4.2: Level of confidence in the local business excellence framework
expressed as a % of responses (Responses = 73)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
4.3 Do you think that the business excellence framework is a good framework for
assessing sustainable competitiveness?
Tick the one that applies
A
Extremely confident, the design is perfect
33%
B
Very confident, but the design does require a few minor changes
49%
C
Reasonably confident, but the design does require a number of changes
18%
D
Require further convincing, the design requires some major changes
0%
E
Not confident at all, the design requires a major overhaul
0%
Figure 4.3: Level of confidence in the business excellence framework as
a tool for assessing sustainable competitiveness expressed as
a % of responses (Responses = 73)
Note: No responses were recorded for “Require further convincing” or “Not confident”.
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
4.4 What changes to the framework should be made? And why?
I02 There should be an increased focus on marketing.
I03 Include innovation
I04 1. It should be industry specific so that comparisons are easy.
2. Instead of generic OFIs, they should be a bit specific.
3. Some features of "Deming" should be incorporated.
4. The complexity of industry should be taken into account.
5. In case of a three tier organization where SBUs, regional head offices,
and a corporate office exists, it is difficult to assess SBU alone or
corporate office alone.
6. For a company which has a product which is not FMCG like "electricity",
it is difficult to compare many customer related aspects.
I06 Changes to address innovation, outsourcing, and management of temporary and
contract labor could be considered.
I07 The present framework is sufficient.
I08 Financial Management and Technology & IT must be criteria themselves instead
of sub-criteria. Innovation needs to be accentuated.
I09 The business excellence framework is not being used as a "self-assessment tool for
performance improvement" in India. It is being used more for winning awards.
Also, the quality of assessments by award bodies is sub-optimal.
I11 More integration of the business excellence model with the unit's objectives and its
deployment across all the processes is needed.
I13 Focus on global business and innovation to make companies competitive.
I18 The framework should improve the aligning of operational activities with strategic
practices.
I19 The scoring pattern on the results part needs to be modified.
I21 Site visits for assessment should provide "on-the-spot” improvement opportunities.
I22 The framework appears to have been designed for very large organizations.
I25 In terms of implementation, the focus should be on a few points at a time and not
on all with blurred focus.
I26 More focus on innovation may be added.
J31 It would be better if there is some kind of guideline which shows the connection
between middle-term/annual business plans and the timing/contents of self-
assessment. The detailed activities in the business plan should be made based on
the results of self-assessment, but we have not established the system to improve
the maturity of strategy planning and policy deployment by self-assessment.
J32 1. Leadership – The influence of the high turnover of top executives on the
leadership and policy of risk assessment.
2. Management strategyWe cannot be sure that a good strategy building
process results in a successful strategy.
J36 The quality of examiners varies too widely. The assessment system gives a heavy
burden to the company and affects the ordinary operation.
S41 The framework is robust and comprehensive. However, different versions of the
framework to accommodate differing organization sizes should be considered. It
may be "counter excellence" to force fit the framework into a small organization.
S42 Good framework
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
S43 In Singapore, there are many companies of diverse ownership and makeup. In
certain industries, due to size, it's not easy to do certain BE practices like
benchmarking.
S44 Include Supporting Green Environment as a measure.
S45 Incorporating risk management and compliance into the framework should be
considered.
S46 I just feel the need to change the framework so it can be adopted by all
organizations, SMEs, etc.
S51 Some aspects are not quite applicable to education, e.g., sales figures.
S53 The SQA framework should be supported by a body of knowledge or guidelines
that make assessment less subjective. The quality of assessment needs to be
improved to give valuable and actionable feedback. My company uses the
MBNQA framework, which is more effective. However, some fine tuning needs to
be made to clarify the organization core competence aspect since that concept is
hard to interpret in an actual business context.
TA62 The result section should be included in each process section for easier
understanding.
TH65 It requires a higher business focus and correct positioning in the country.
TH70 It's very difficult to find benchmarks on the results.
TH71 It needs to focus on specific businesses, such as healthcare and education, the
same as MBNQA.
TH72 Separate by business sector, such as manufacturing, service, non-profit, etc., to
make it more suitable for specific types of organizations.
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
4.5 Do you have any comments to share on Section 4?
I10 Model to include Inclusive Growth
J31 We think that it would be more effective to implement self-assessment and
improve PDCA at the specific managerial issues, rather than implementing it for
all of the categories every time.
J36 We have managed to improve company culture by solving individual issues day
by day.
TH63 For more understanding of Quality Applications, each process description and
result should be combined and concluded in each section.
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
SECTION 5 – AWARENESS OF BUSINESS EXCELLENCE
5.1 Why did your company decide to follow a business excellence path?
Tick the level of importance for each statement
Level of importance
Not
important
Some
importance
Moderate
importance
Very
important
Essential
0
1
2
3
4
A It was a decision by the CEO 6% 1% 18% 41% 34%
B We were facing a crisis and needed a
change in direction 46% 19% 19% 11% 5%
C We liked its focus on continuous
improvement 1% 1% 18% 64% 15%
D To improve productivity 3% 15% 17% 59% 6%
E To improve quality 1% 9% 10% 67% 12%
F To become world class 7% 6% 4% 41% 41%
G To win an award 19% 19% 31% 19% 10%
H We wanted a holistic framework which
our other initiatives could fit within 6% 12% 16% 42% 25%
I To educate staff on the characteristics of
successful organizations 5% 5% 34% 48% 9%
J Research showed it would be beneficial 20% 19% 28% 28% 5%
K
To benchmark our business excellence
scores within and across industries 9% 15% 19% 46% 10%
L
To have an external/independent measure
of our performance 4% 6% 25% 44% 21%
M
To copy a competitor that was already
using a business excellence approach 58% 9% 22% 9% 2%
N We were encouraged by our customers 65% 15% 17% 2% 2%
O We were encouraged by our suppliers 69% 11% 14% 3% 3%
P We were encouraged by our government 63% 16% 16% 3% 2%
Q Other please specify: 9% 0% 0% 64% 27%
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
Figure 5.1: Reasons for implementing a business excellence initiative
expressed as an average of importance (Responses = 72)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
5.2 What percentage of your senior management team is aware of your country’s
business excellence framework?
Tick the one that applies
A
0%
0%
D
41 - 60%
5%
B
0
- 20%
8%
E
61 - 80%
23%
C
21 - 40%
4%
F
81 - 100%
59%
Figure 5.2: Senior management awareness of business excellence
expressed as a % of responses (Responses = 73)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
5.3 What percentage of your employees is aware of your country’s business
excellence framework? (your best estimate)
Tick the one that applies
A
0%
6%
G
41 - 50%
4%
B
1 - 5%
8%
H
51 - 60%
14%
C
6 - 10%
3%
I
61 - 70%
18%
D
11 - 20%
11%
J
71 - 80%
15%
E
21 - 30%
4%
K
81 - 90%
10%
F
31 - 40%
4%
L
91 - 100%
7%
Figure 5.3: Employees’ awareness of business excellence
expressed as a % of responses (Responses = 72)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
5.4 The following questions seek to obtain your opinion on the services provided
within your country to create awareness and understanding of business excellence.
These services are usually supplied by the organization that administers the
national business excellence award, but may be supplied by other organizations.
List of activities/services that help
to raise awareness and
understanding of business
excellence within a country.
(BE = business excellence)
Tick √ the 5
activities that
you think your
country should
focus on
improving/doi
ng more of
over the next
few years to
raise
awareness
levels and
understanding
of business
excellence.
Which
activities
has your
company
experience
d/ used
within
your
country?
Indicate
with a tick
√.
For the activities you have
used, how beneficial have they
been?
Don’t know
Very poor
Poor
Average
Good
Excellent
A
Promotion of BE via websites
B
Marketing of BE to
CEOs/senior managers
C
Marketing of BE to
managers/employees
D
Obtaining the assistance of
assessors to promote BE
E
Obtaining the assistance of
companies that already use BE
to promote BE
F
Conferences on BE
G
Workshops/training in BE
H
Presentations from Award
winners
I
Press releases on BE
J
Access to easy-to-understand
publications that explain BE
and its benefits
K
Encouraging schools to
promote and teach BE to their
students
L
Encouraging tertiary
institutions to promote and
teach BE to their students
M
Encouraging
industry/membership based
associations to promote BE to
their members
(continued on next page)
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Appendix A: Survey Report on the Impact of Business Excellence/Quality Awards on Enterprises
(continued from previous page)
N
Encouraging government
institutions to promote and use
BE
O
Having BE Awards at the
local level (by city or area of a
country)