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INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE ‘MY BE STORY’ Assoc. Prof. Ts. Dr. Musli bin Mohammad Director, Continuing Education Center Academic Staff, Faculty of Mechanical and Manufacturing Engineering Universiti Tun Hussein Onn Malaysia (UTHM)

INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

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Page 1: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

I N T E R N A L I Z I N G T H E V A L U E S O F B U S I N E S S

E X C E L L E N C E‘MY BE STORY’

Assoc. Prof. Ts. Dr. Musli bin Mohammad

Director, Continuing Education Center

Academic Staff, Faculty of Mechanical and Manufacturing Engineering

Universiti Tun Hussein Onn Malaysia (UTHM)

Page 2: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Presentation Outline

Main purposes of Business Excellence Frameworks

Business Excellence as an appropriate initiative to be used

How to stay relevant and achieve sustainability?

1

2

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Page 3: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

My BE Story

Total Quality Management Executive, UMW Toyota Motor Sdn. Bhd.

Researcher, Global study on regional and national quality / business excellence awards, Baldrige Performance Excellence Program, USA

Resource Person, Training of Trainers on Business Excellence for SMEs

Chief Researcher, Strengthening of National Productivity Organizations Assistance Program

Expert, Development of a toolkit on Business Excellence for Asian SMEs

Certificate of Competence as a Business Excellence Assessor

Listed in the Directory of Productivity Champion

Expert panel, Review of Malaysia Business Excellence Framework and Criteria

PhD (Engineering and Industrial Management)

Data collection: - Award winning organizations (New Zealand, Malaysia, Singapore)

- BE experts (e.g. Baldrige, NZBEF, MPC, SPRING Singapore)

Page 4: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

M A I N P U R P O S E S O F B U S I N E S S E X C E L L E N C E

F R A M E W O R K S

Page 5: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Main purposes of BEFs

Organizational assessment and award

Guidance towards Business Excellence

1

2

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Page 6: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Organizational assessment and award

Business Excellence Criteria

2019-2020 Baldrige Excellence Framework

2020-2025 Malaysia Business Excellence Framework

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Page 7: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Organizational assessment and award

Scoring System

Baldrige Criteria and Point ValuesMBEF Criteria and Point Values

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Page 8: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Organizational assessment and award

Self Assessment ToolezBE

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Page 9: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Leadership Strategy Customers Information Process Workforce

Example of a gap analysis from assessment based on Business Excellence Framework

Page 10: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Organizational assessment and award

❑ Assess organizations’ strengths and discover areas for improvement.

❑ Serve as an organizational health check.

❑ Basis for evaluating the performance of Quality/BE Award applicants as well as to identify the winners of the award (e.g. Industry Excellence Award).

❑ Achieving BE certification or winning a quality / BE award provides public recognition.

❑ BE assessments enable organizations to compare their performance against others both domestically and globally.

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Page 11: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Guidance towards Business Excellence

11 MBEF Guiding principles

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Page 12: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Guidance towards Business Excellence

11 Core Values of Baldrige Excellence Framework

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Page 13: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Guidance towards Business Excellence

❑ Summarize how excellent organizations looks like by

providing attributes, core values and guiding principles of

high performing organizations.

❑ Provide common framework for learning and sharing

‘best practices’ from the successful organizations.

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Page 14: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Guidance towards Business Excellence

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Page 15: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

B U S I N E S S E X C E L L E N C E A S A N A P P R O P R I A T E

I N I T I A T I V E T O B E U S E D

Page 16: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

“I think where organizations get off track is when they think Baldrige is just an initiative, rather than a model for organizing

and managing the enterprise and all its initiatives. If Baldrige is reduced to an initiative, rather than an overall model and a way

of thinking, then organizations can say they have done it and moved on... But in organizations that embrace the Baldrige

Framework as an overarching model, they never move beyond it. This includes very high-performing organizations, including

our Award recipients”

Jamie Ambrosi

Former Deputy Director of Baldrige Performance Excellence Program

Overarching approach for managing various improvement initiatives

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Page 17: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Overarching approach for managing various improvement initiatives

Organizational improvement initiatives:

Approaches, management systems, technologies, tools and/or techniques that can be used for managing and improving organizations

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Page 19: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Leadership Workforce Customers Process Strategy Information

Sustainable Development

Goals

Corporate Social Responsibility

Program

Corporate Governance

Management

LeadershipDevelopment

Program

Succession Planning

Management By Walking About

(MBWA)

Vision, Mission and Values

EmployeeEngagement

Program

Rewards & Recognition

Suggestion Scheme

Employee Performance Management

Training and Competency Development

Job Description & SOP

Recruitment Management

Service and Product

Innovation

E-Commerce

Branding

Blue Ocean Strategy

CustomerRelationship Management

Customer Survey

Service Standards

Customer Segmentation

Market Research

Internet of Things (IOT)

Additive Manufacturing

Automation

Simulation

TRIZ

Improvement Teams

Supply Chain Management

Risk Management

Quality Management

System (ISO9001)

Statistical Process Control

Lean

Process Mapping

Business Continuity

Management

Balanced Scorecard

Strategic Alliances

Action Plan (Financial,

Resources, etc)

Business Model Canvas (BMC)

SWOT Analysis

PESTLE Analysis

Strategic Plan(Objectives /

Goals)

Big Data Analytics

KnowledgeManagement

Cyber security

Cloud Computing

Business Excellence Self

Assessment

Performance Measurement

Information System

CommunicationChannels and

System

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Page 20: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

H o w t o s t a y r e l e v a n t a n d a c h i e v e s u s t a i n a b i l i t y ?

Page 21: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Relevant and Sustainable

• Meet the purposes of the organization existance

• Satisfy and exceed the expectations of customers, employees, shareholders, and other stakeholders

• Protect, sustain, and enhance the environmental, social, and economic resources needed for the future.

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Page 22: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Sustainability through Business Excellence

SustainabilityDimensions

Description Examples of BE criteria

Examples of initiatives

Economic sustainability

Profitability, Cash Flow, Enterprise Value, Customer satisfaction, Customer Loyalty, Productivity, Innovative capacity, Efficiency-enhancing technology

• Process • Customers• Strategy• Information

• Digital Lean• E-commerce• Business Continuity

Management• Sustainable

Development Goals

Social sustainability

Employee well-being, Community well-being, Social Sponsorship

• Workforce• Leadership

• Corporate Governance• Corporate Citizenship• Endowment, Wakaf,

Sadaqah• Sustainable

Development Goals

Environmental sustainability

Waste & emissions reduction, renewable energy,Environmental Levies, Environmental Sponsorship

• Leadership• Process

• Sustainable Development Goals

• ISO 14001

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Page 23: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Sustainability through Business Excellence

“I use Toyota and GE as a benchmark..Toyota and GE, they are more than 100 years in the business..They must have done something very

right to sustain many up and down in the century..I’m a bookworm, so I study how Toyota and GE started..If I want to build a great

technology company, I must learn from that..so, I just use whatever that they use..one step at a time..it end up when I look Business

Excellence [Framework], it almost the same..All the success that can last for long are almost the same”

Mr. Chu Jenn Weng

CEO and Founder

ViTrox Corporation Berhad

2011 Prime Minister’s Industry Excellence Award recipient

Business Excellence CEO Forum 2016

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Page 24: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Business Excellence

• The achievement of BE depends on the cultivation of a desirable organizational culture.

• BEF should be institutionalized into an organization to provide the overall guidance for pursuing BE.

• Implement appropriate improvement initiatives that can aligned together in the ongoing pursuit of BE.

Business Excellence

Organizational culture

Business Excellence Framework

Organizational Improvement

Initiatives

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Modified from: Dahlgaard, J. J., Chen, C. K., Jang, J. Y., Banegas, L. A., & Dahlgaard-Park, S. M. (2013). Business excellence models: Limitations, reflections and further development.

Total Quality Management and Business Excellence, 24(5-6), 519-538.

Page 25: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Business Excellence

To achieve BE, organizations need to work with all three components:

(1) suitable core values for building a desirable organizational culture,

(2) the BEF, and

(3) suitable organizational improvement initiatives.

Business Excellence

Organizational culture

Business Excellence Framework

Organizational Improvement

Initiatives

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Page 26: INTERNALIZING THE VALUES OF BUSINESS EXCELLENCE · BUSINESS EXCELLENCE FRAMEWORKS. Main purposes of BEFs Organizational assessment and award Guidance towards Business Excellence 1

Assoc. Prof. Ts. Dr. Musli MohammadUniversiti Tun Hussein Onn Malaysia

[email protected]

http://community.uthm.edu.my/mmusli

http://www.linkedin.com/in/muslimohammad