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Excellence and the Leadership Imperative
Dr. Rick L. Edgeman, Professor & Director
SABER Institute for Self-Assessment & Business Excellence Research
College of Business, Colorado State University, Fort Collins, CO 80523, USA
Phone: 1-970-491-5098Fax: 1-603-250-7771
E-mail: [email protected]
Suggested Running Head: Excellence and the Leadership Imperative
Journal of Management Systems, Vol. 13, No. 1, pp. 1-12, 2001
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Abstract
This special issue of the Journal of Management Systems is dedicated to
Leadership for Business Excellence. Business Excellence is, on the whole, an emerging
area -- nevertheless, leadership is regarded globally as its pre-eminent enabler.
Understanding of leadership in this context is also emerging and has to date focused more
intently on activities than attributes.
In this issue, the topic of Leadership for Business Excellence is approached from
varying perspectives. Included among these are consideration of the contribution of
gender differences, the importance of values and ethics, the balance of core values and
core competencies, identification and deployment of values at the corporate level, and
application in the public sector. Contributing authors to this issue bring not only differing
business and academic backgrounds, but also differing cultural experiences since
contributing authors include citizens of Denmark, Ireland and the United States.
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Introduction
In Europe it is generally referred to as Business Excellence and in the United
States it is known synonymously as Performance Excellence. Most of the remainder of
the globe refers to it by one or the other of these two terms. But whatever Business or
Performance Excellence may be, it is generally acknowledged that it is enabled in large
by leadership, hence the topic of this special issue of the Journal of Management Systems
wherein the term Business Excellence is generally employed.
The concept of Business Excellence is recognized around the world and is at the
core of various national quality award programs as well as organizational self-assessment
models applied by numerous business entities, whether they be public or private (Conti,
1997). Business Excellence can be regarded as the overall way of working that balances
stakeholder concerns and increases the probability of long-term organizational success
through operational, customer-related, financial and marketplace performance excellence
(Edgeman and Scherer, 1999). But what is this overall way of working and how can we
make it as portable as possible, so that its benefits can be more broadly distributed? More
specifically, what contribution does leadership have to make to this overall way of
working?
These are important considerations since, indeed, highly efficient and effective
organizations driven by exceptional leadership contribute to communities through
exemplary citizenship, to consumers through outstanding products and services, and to
economies through enhanced competitive position. Of course, not all environments are
competitive per se (Cox, 1999) and this is perhaps more well-known elsewhere around
the globe than it is in the United States, that is, in regions where the public sector forms a
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greater part of the national social and economic profile this phenomena is more
recognizable.
While various elements are recognized as legitimate enablers of Business
Excellence, its heart and soul is leadership, which is herein regarded as systemic to the
extent that an organizations ability to anticipate and counter threats on the local level
renders it immune to unresolved crises that must be brought to central attention.
Transforming systemic leadership from concept to reality is an especially critical
Business Excellence consideration because it deals with the foremost of the stakeholder
segments whose expectations must be balanced -- the customer. As such, systemic
leadership is fundamental to customer relationship management (Galbreath and Rogers,
1999).
With regard to Business Excellence, one key leadership consideration is the
identification and mapping of values and competencies to the aforementioned overall
way of working. Further, which of these can be deployed throughout the organization
and how is the effectiveness of that which is deployed, assessed?
While effective leadership styles may vary dramatically across markets and
circumstances, some universal aspects of effective leadership mapping to Business
Excellence may be identifiable. Once identified, an important issue becomes approach,
deployment, implementation results and assessment thereof. Herein, leadership as
addressed by the self-assessment models underlying various international quality awards
is examined. This is followed by identification of universal leadership core values and
competencies and discussion of their relation to Business Excellence. Prominent among
these core values are principles practiced by Leonardo da Vinci, regarded by some as
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humankind's greatest genius (Buzan and Keene, 1994), and the expression these find in
Leadership for Business Excellence.
Deployment is critical to systemic leadership and, among other means, may be
approached via the reward and recognition system and through organizational
performance measures. Closure is reached through discussion of the crucial issue of
success in our endeavor, that is, assessment of leadership for business excellence.
Leadership and International Quality Awards
Systemic leadership distributes leadership responsibilities and privileges across an
organizations human resource. Most Business Excellence models limit the role of
leading to CEOs and senior executives and regard it as competence based. The legacy of
leaders across human history however, is written in terms of core values such as courage,
wisdom, sacrifice, stewardship (Block, 1993), servanthood (Greenleaf, 1997) and so on.
In an act of corporate nihilism, Business Excellence models typically ignore such values
(Edgeman and Rodgers, 1999).
Leadership criteria from various international quality award models indicate four
primary areas that are assessed (Edgeman and Conlan, 1998) none of which map to the
sort of core value based legacies often associated with leadership. These commonly
assessed areas include:
Leadership internal to the organization and particularly as it relates to total quality
management, recognition and reward, and resource commitment;
Involvement with customers, suppliers and other external organizations;
Leadership responsibility to society; and
The system of leadership.
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The Future of Leadership in International Quality Prizes?
In a move signaling possible integration of leadership core values and
competencies, the European Foundation for Quality Management recently modified the
self-assessment model that underlies the European Quality Award (EFQM, 1998). The
so-called improved model is being applied for the first time in 2000 and adopts the
RADAR (Results, Approach, Deployment, Assessment and Review) method of self-
assessment. Enablers of Business Excellence, such as leadership, are examined for the
approach followed and its rationale, how the approach supports policy and strategy and
how it is focused on the needs of the stakeholders affected by it. Further, the extent of
deploymentor pervasiveness of the approach, and how it is managed so as to ensure that
it is full and effective are investigated. Assessment and review activities that take place
include measuring approach and deployment effectiveness, undertaking learning
activities such as benchmarking, and, based on all these, identifying, prioritizing,
planning and implementing improvements. Specific to leadership, the improved model
places additional focus on the leaders personal role in ensuring that the organizations
management system is developed and implemented.
The improved EFQM model defines leadership as: How the behaviors and
actions of the executive team create the culture, values and overall direction required for
long term success. These behaviors and actions are appropriately reinforced and
deployed by all other leaders within the organization (EFQM, 1998). As an enabler of
Business Excellence, a key issue is how the approach to leadership is developed, with
particular attention devoted to:
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defining organizational approach to leadership including: purpose, direction and
objectives;
integration of the approach to leadership into overall organizational policy and
strategy;
defining the processes that generate the key leadership related activities;
matching leadership to organizational maturity/structure, changing markets and
environment;
establishing the organization culture and driving values;
defining role models for leadership;
stimulating innovative and creative thinking; and
updating the approach based on assessment and review feedback.
Deployment -- the means by which leadership may be driven into the
organization, that is, made systemic -- is examined within the improved EFQM model
according to how the approach to leadership is deployed and mirrored in leaders
behaviors and actions. Among issues addressed are the selection, cultivation and
development of leaders and organizational leadership structure. It would seem evident
that the EFQM perspective on Leadership for Business Excellence recognizes the time-
honored principle that there is no success without a successor (Maxwell, 1995).
The improved EFQM model considers a comprehensive list of leadership
behaviors and actions. These include: communication and modeling of organizational
values; setting and communication of direction and priorities; forging unity of purpose;
encouraging empowerment; recognition of peoples effort and achievements; promotion
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of and support for learning and innovation; meeting, listening, understanding and
responding to stakeholders; driving ethical behavior into the organization; and updating
the deployment based on assessment and review feedback.
The EFQM Business Excellence Model also assesses leadership comprehensively.
In fact, assessment and review of leadership addresses implementation of a monitoring
system with early warning indicators and measures; identification and evaluation of
organizational strengths, weaknesses, opportunities and threats; active learning about
effective and ineffective leadership; use of upward evaluation, appraisal and assessment;
evaluation of the role of leaders in driving the innovation and learning process;
prioritizing and implementing the learning from all monitoring, assessment and review
activities to improve efficiency and effectiveness; and validation of the assessment and
review process.
Universal Leadership Core Values and Competencies
In January 1998 more than two dozen of the worlds most influential executives
gathered at CBS studios in New York and the BBC studios in London. Consensus on
three strategic and competitive business growth drivers emerged from this gathering,
billed as the first Best Practices for Global Competitiveness Summit(EFQM, 1998).
Mapping directly to leadership as identified in Business Excellence models underlying
international quality prizes, those drivers are:
innovation through formal and informal processes for discovering and applying new
business ideas from both traditional and nontraditional sources (Bogan and English,
1994; Urban, 1998);
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strategic alliancesformation through development and maintenance of collaborative
business efforts that have both high risk and great benefit for all participating parties
(Segil, 1996); and
stakeholder symbiosis an emerging concept that recognizes the mutual
interdependence of all stakeholders as related to their success and financial well-
being.
Vital strands in the tapestry of Business Excellence that are consistent with ideas
espoused by those executives participating in the Summit include:
value for the individual and knowledge issues, such as training, fast learning,
creativity and innovation;
total engagement of employees through recognition and reinforcement, resource
allocation sufficient to employee needs, empowerment, and participation in
multidisciplinary teams;
a balanced stakeholder perspective that recognizes the link between employee and
customer satisfaction that drives success and profitability, thereby creating
shareholder value;
alignment of employee training with customer needs and of mutual interests in
formation and management of strategic alliances (Labovitz and Rosansky, 1997); and
a strong strategic orientation with the ability to integrate an organizations many
concurrent initiatives (Dahlgaard, Nrgaard, and Jakobsen, 1998).
Whether directly or implied, various core values -- where values is meant in the
traditional ethical and moral sense -- map to these drivers of Business Excellence and
supporting ideas. These include fairness, honesty, respect for the individual and integrity
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(LeClair, Ferrell, and Fraedrich, 1998; Lowe, 1998); stewardship of organizational
resources including its human resource (Block, 1993); servanthood to the organizations
many stakeholders; listening, communication, empowerment and value for diversity
(Critelli, 1998; Price Waterhouse Change Integration Team, 1995); and a value for
reproduction, that is, commitment to the principle that leaders beget more leaders.
Business Excellence, Leadership Values and da Vincian Principles
Recently a new organization committed to the creation, dissemination and
application of knowledge relevant to Business Excellence was birthed (Dalrymple,
Edgeman, Finster, Guerrero-Cusumano, Hensler, and Parr, 1999). This organization,
called the Multinational Alliance for the Advancement of Organizational Excellence or
MAAOE, is an alliance composed predominantly of academics coming from
approximately 20 nations distributed throughout Africa, Asia, Australia, Europe, North
America and South America. The strategic intentions MAAOE are strongly related to
knowledge -- its derivation and, ultimately, application.
While Demings System of Profound Knowledge (Deming, 1986) contributes to
pursuit of MAAOEs strategic intentions -- since, indeed, Deming's ideas and methods
are regarded as central to quality management -- the womb from whence the babe of
Business Excellence sprang, it is possible that another line of pursuit might also be
beneficial. We now consider classical principles employed by Leonardo da Vinci.
Da Vinci was no mere dreamer who schemed but did not act. This is well-
documented by his seminal work in human anatomy and the wealth of art and scientific
work that he bequeathed to civilization, including designs for creations that would be
technologically impossible for hundreds of years after his death, such as the submarine
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and helicopter. In particular, we now examine seven principles applied by da Vinci and
their applicability to creation, dissemination and application of knowledge relevant to
Leadership for Business Excellence. In the Italian, these seven principles are: Curiosit,
Dimostrazione, Sensazione, Sfumato, Arte/Scienza, Corporalita, and Connessione. These
principles are concisely defined by Michael J. Gelb (1998) as follows:
Curiosit: an insatiably curious approach to life and an unrelenting quest for
continuous learning.
Dimostrazione: a commitment to test knowledge through experience, persistence, and
a willingness to learn from mistakes.
Sensazione: the continual refinement of the senses, especially sight, as the means to
enliven experience.
Sfumato: a willingness to embrace ambiguity, paradox, and uncertainty. The literal
meaning of Sfumato is going up in smoke.
Arte / Scienza: development of the balance between science and art, logic and
imagination so-called whole-brain thinking.
Corporalita: the cultivation of grace, ambidexterity, fitness and poise.
Connessione: a recognition of and appreciation for the interconnectedness of all
things and phenomena systems thinking.
With regard to curiosit, it worthwhile to note that many organizations now
include curiosity among their core values. It is not too strong a statement to say the
curiosity is at the core of being a learning organization (Senge, 1990). A detailed reading
of the Malcolm Baldrige National Quality Award Criteria for Performance Excellence
(1999) indicates that curiosit is highly consistent with Business Excellence and that an
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organizations leadership is expected to provide the motivation and means by which
continual learning takes place in the organization.
While innovation and new product development may be driven by curiosit and
may lead to marketplace success, it is dimostrazione that transforms curiosits ideas into
marketplace reality. This transformation is commonly an iterative fine-tuning process that
requires striking a balance between the patience needed to deliver a market-ready product
or service with the urgency inspired by opportunity and competitive pressures.
Organizational leadership must approach the dimostrazione process with meekness -- the
idea of which is similar to the meeking of a horse, that is, bringing the power of the
dimostrazione process under control, without breaking the curiosit spirit by which it is
driven.
While the definition of Business Excellence employed herein cites a balanced-
stakeholder perspective, it is certainly the case that the pre-eminent among stakeholders
is the customer. Organizations in pursuit of Business Excellence almost certainly employ
various means of listening to the voice of the customer. These means may include
customer surveys, benchmarking our competitors customer satisfaction and loyalty
levels, use of focus groups or application of the more formal technique of quality
function deployment. Regardless of the method or methods applied, the analogy between
listening and sensazione is an obvious one. It is worth noting that many means of
learning have been identified and that these commonly involve active use of our senses
with listening being among these. Listening can be regarded as both a competency and a
core value and it both the practice and promotion of listening is key to Leadership for
Business Excellence (Edgeman, Dahlgaard, Dahlgaard and Scherer, 1999).
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The best laid plans of mice and men in many ways captures the essence of
sfumato in that the nature of our existence is to find that which is predictable while at the
same time living within the larger framework wherein there is precious little that is
absolutely certain. The challenge of course is to embrace, rather than abhor, ambiguity.
From a leadership perspective, this can often be modeled through the policy deployment
process wherein leadership at the top of the organization -- from whom big vision is
often an expectation -- will state a vital few goals, called hoshins. It is generally held that
these hoshins must be accomplished if the organization is to prosper. This process
cascades down through the organization with individuals at each successive level
deriving their own hoshins that will in some way actualize those from the preceding
level. Important is that the individual is responsible for determination of the means by
which theirhoshins are actualized, rather than having these means imposed. Clearly, it is
not that our desire is for anything to go up in smoke -- but we should note that the fire
that burns down the house and the fire that warms it both produce smoke. In this case, our
manifestation ofsfumato is intended to warm the home and bring liberation, rather than
bondage -- but this will require welcoming, rather than fearing, ambiguity.
Common in organizations pursuing Business Excellence is the provision of
education and training in many areas, including use of quality improvement and
creativity methods -- methods that are in some cases left-brain and in other cases
right-brain so that, the development of the organizations human resource is a more
holistic one. This is the goal ofarte / scienza: the integration of left-brain thinking and
right-brain thinking to produce whole-brain thinking. Encouragement of and support
for education and training is generally assessed in the Human Resource Management and
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Development component of Business Excellence models, but is therein regarded as a
responsibility of leadership.
It is interesting to note that the Latin root forcorporalita is corpus and that, in
essence, these words are used for corporation or organization or body. The primary idea
in the da Vincian context is one of completeness -- both personal and corporate -- through
flexibility or versatility. Among acknowledged contributors to Business Excellence that
promote such completeness are emphases on cross-functionality, cross-training, and
teamwork. The criteria of most Business Excellence models generally expect leadership
to support these emphases, both motivationally and from the perspective of resource
dedication.
In the Italian it is connessione and in the Latin it is nexus. In either case it is
interconnectivity, an appreciation for and understanding of complex interactions and
knowledge of the truth that maximum benefit to the whole is often derived from the
sacrificial action of one or more of its constituent elements. This is systems thinking in
the sense that Deming (1986) emphasized wherein optimization of the organization is not
of necessity equivalent to optimization of the various component parts (Harrington, Carr
and Reid, 1999). The Biblically familiar among readers of this article will recognize this
as analogous to the admonition of the Apostle Paul in his first letter to Christians who
were in Rome (Romans 12:12-31).
Deployment Principles
A time-honored principle is that of what gets measured is what gets done!
Based on this idea, the premise is that core value deployment can be facilitated via the
following means:
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the reward and recognition system; and
a carefully crafted and integrated set of organizational performance measures.
Other methods not so keenly tied to measurement that have proved effective in deploying
core values include:
codes of conduct; and
a statement of values and guiding principles.
Examples of successful deployment of core values through these each of these
four approaches can be found in Paine (1994) as can examples of organizational failure
traceable to deployment of such values.
At individual and team levels, performance measures hold the potential of
integrating core values and competencies. On this premise, the reward and recognition
system provides a vehicle for deployment of both values and competencies -- indeed, this
is a common means of deployment. Deployment through the reward and recognition
system is especially promising since it is here that means and measures for deploying and
reinforcing values and competencies can be devised. The reward and recognition system
is the mechanism by which an organizations culture is communicated and as such
performance measures are a strong force in shaping organizational culture and those
measures used should directly reflect core values identified for deployment.
Assessment of Leadership for Business Excellence
Organizational leadership is often regarded as the supreme function of ultimate
arbitration and decision-making and thus its topos is at the pinnacle of the organizational
pyramid. In advanced organizations, leadership is pervasive -- being embedded in all
members of the organization, down to the interface with the customer -- whomever is in
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direct working contact with the customer is empowered to secure customer enthusiasm
and, in some sense, loyalty in real-time. It is in this regard that empowerment is critical to
realization of organizational mission. The person involved in such transactions must be
capable of exercising this empowerment -- knowing, sharing, being committed to
corporate objectives and constraints. That person is, in essence, a leader. In this regard,
leadership is not constrained to individuals and has no singular place in the organization,
it is localized thus omnipresent -- it is systemic (Edgeman and Scherer, 1999).
How then do we measure the extent to which leadership has been driven into an
organization, the degree to which issues are being effectively dealt with at local levels?
At the organizational level the issue is in part one of determining the capacity to forgive
and forget in those instances where an individual has made an honest mistake, for
advanced leadership systems do not personalize and, thus, do not persecute failures.
There are observable characteristics, measures for which may be derived, for assessing
progress of a specific enterprise on the continuum from a traditional leadership system to
an advanced leadership system. The implicit assumption is that advanced leadership
systems more nearly conform to systemic leadership and thus promote Business
Excellence more effectively than do traditional leadership systems. Edgeman and Scherer
(1999) suggest a variety of characteristics, measures for which must be derived, that can
be used to assess progress toward an advanced leadership system and hence, by
implication, leadership that promotes Business Excellence as Business Excellence is
herein considered.
Tito Conti, the man responsible for developing much of that constituting the
critieria of the EFQM Business Excellence Model provides excellent guidance on the
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organizational self-assessment process, including assessment of leadership (Conti, 1997).
While not discussed explicitly herein, another means of assessing overall organizational
performance is the balanced scorecard (Kaplan and Norton, 1996). Assessment is critical
to characterizing an organization's performance and hence to making progress toward the
goal of Business Excellence. While many assessment tools and techniques exist, the
balanced scorecard and the criteria of various international quality prizes, such as the
European Quality Award or America's Malcolm Baldrige National Quality Award are
generally recognized as being of great value in the assessment process.
Conclusion
What is expected of organizational leadership? The answer is simple enough:
abundant foresightthat retains its brilliance in hindsight. Leadership as historically
conceived indicates that competencies that augment principle-centered core values are
also expected. Organizational nihilism has led to increasing emphasis on competencies to
the neglect of core values. In an effort to restore balance this work has suggested both
values and competencies that an organization intent on Business Excellence should
deploy and assess.
Values and competencies identified were derived from a variety of sources.
Among these sources were the leadership criteria of the EFQM Business Excellence
Model that is used to assess applicants for the European Quality Award, ideas generated
during a 1998 meeting of leading executives, and classical principles applied by
Leonardo da Vinci.
Identification of leadership values and competencies key to Business Excellence
is not sufficient. These must be deployed and, once deployed, their effectiveness
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assessed. Remembering that what gets measured is what gets done -- deployment
through the reward and recognition system and through organizational performance
measures was recommended.
What is imperfectly measured is likely to be imperfectly executed. Still, in the
spirit of continuous improvement a legitimate start must be made and imperfect measures
can be honed over time. Critical to the honing process is assessment. Assessment within
the context of the aforementioned EFQM Business Excellence Model was discussed as
were ideas intended to capture the degree of progress made toward systemic leadership,
deemed herein as leadership that will promote Business Excellence.
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Biographical Sketch
Dr. Rick L. Edgeman is professor of computer information systems in the College
of Business at Colorado State University where he also serves as director of the SABER
Institute for Self-Assessment & Business Excellence Research. Rick earned the doctoral
degree in Statistics in 1983 from the University of Wyoming and has previously served as
a visiting professor in the Quality & Innovation Research Group at the Aarhus School of
Business in Denmark, the Management Science Division at the University of North
Texas, the Center for Quality & Applied Statistics and Graduate Statistics Department at
the Rochester Institute of Technology, and in the College of Business at Bradley
University. He has lectured extensively internationally, including in Scotland, Ireland,
England, Denmark, Sweden and Australia.
Ricks research interest spans quality engineering and management, leadership,
business excellence, statistics, and statistical computing. He has authored or co-authored
more than 100 articles, many of which appear in such journals as Quality Progress, Total
Quality Management, The TQM Magazine, International Journal of Quality & Reliability
Management, IEEE Transactions on Reliability, The Leadership & Organization
Journal of Management Systems, Vol. 13, No. 1, pp. 1-12, 2001
8/7/2019 J-Mgt-Systems-Edgeman
22/22
Development Journal, The American Statistician, Australian Journal of Statistics,
Communications in Statistics, and Communications of the ACM.
In addition to editorial activities, Rick currently serves as Executive Director of
MAAOE, the Multinational Alliance for the Advancement of Organizational Excellence.
MAAOE was founded in 1998 and has participation spanning more than 20 nations.
MAAOE is dedicated to the creation, application, and dissemination of knowledge
related to organizational excellence.