2000 and Beyond: A Model for Business Excellence
Terry L. Johnson, Christopher A. Turner, and John F. Proud, CFPIM EXECUTIVE SUMMARY
How do we move upstream from achieving global best practices in the operations of our business to the bigger picture—excellence in every aspect of our business? A level of excellence that provides the returns on stakeholder equity that exceeds our corporatestrategies and goals. A level of excellence that delivers the results needed to achieve and maintain a lasting sustainable competitive advantage. Creating this level of excellence begins with an understanding of the role that integration plays. Integration is not a new concept. It means to make whole or complete by bringing together parts. It is integration that is at the heart of achieving thislevel of excellence we refer to as “business excellence.” The integration of an organization’s people, processes and technology is the means by which world-class results can be achieved. Imagine your organization’s behaviors are modeled as best practice throughout the business community. Imagine your people are passionate about their role in the organization and its role in the community. Imaginethat they are constantly challenging themselves and living in the gap between their current performance and the next level of excellence. Imagine the results of achieving outrageous goals. Imagine the potential of an organization whose people, processes and technology are fundamentally integrated. Imagine the competitive advantage your organization could hold if this were you. Imagine “businessexcellence.” Not every organization will have the capability or desire to begin this journey. Even fewer of those who begin the journey will achieve business excellence. The organizations that recognize the opportunity, understand the benefits and successfully achieve them will be the survivors.
BUSINESS EXCELLENCE FOUNDATION
The foundation of the business excellence model provides a fundamentalview of the critical dimensions within an organization and how they interrelate. Because there are a multitude of activities going on at any given time in an organization, we have tried to simFigure 1. plify this chaos in a way that allows a logical explanation Business Excellence Foundation of action and reaction, cause and effect and decision and result. The People three dimensions of people,processes and technology are The Sweet the foundation. The Spot area where these Technology Processes three dimensions overlap we refer to as the “sweet spot” (see Figure 1). Examining each of these dimensions and what is required to achieve complete integration provides the foundation for understanding business excellence.
We have found that the most successful change initiatives havebegun with a focus on the organizations’ people and their behaviors. To better understand the power of the people dimension we must have an understanding of the impact that people’s behavior has on an organization’s performance. In fact, we have observed a correlation between how people behave and how they are rewarded, motivated, encouraged and developed. Organizations that design their peopledimension to encourage behaviors such as creativity, learning, risk taking, empowerment and excellence are building the foundation for business-excellence-level results.
Successful organizations have not achieved business excellence by focusing on technology alone. Nor have they recognized world-class business results by focusing exclusively on their processes or their people.Today’s leading organizations realize that they must have an unfailing focus on the customer. This customer focus must be combined with an integrated approach to the critical business dimensions of people, processes and technology. The true integration of these dimensions has enabled many successful companies to change the way they do business. The model that will be presented provides the framework...