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Model L E A D R S H I P 100 1 B U N T 400 7 www.qimpro.com.

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1 Model L E A D R S H I P 100 1 B U N T 400 7

2 1.0 Leadership Strong leadership is the key to progress on the journey to becoming world- class. The first criterion of the criteria explores how senior executives and managers define the organization’s mission and values, and the direction the organization will take in the future. The two parts in Criterion 1.0 ask about the company’s leadership system, and how the company’s leaders drive effective performance (1.1 Leadership System) and how the company leads in public responsibility and corporate citizenship (1.2 Societal Responsibilities).

3 1.1 Leadership System Describe the company’s leadership system and how senior leaders guide the company in setting directions and in developing and sustaining effective leadership throughout the organization.

4 1.1 Leadership System (Cont...)
What Does This Mean? This part identifies the extent to which senior executives are personally involved in establishing the direction of the company and demonstrating the expressed values. Executives need to do more than perform symbolic gestures such as making speeches or giving awards. This item examines the extent to which executives have direct and frequent contact with customers, employees, and suppliers. The way the company is organized is also evaluated here. Lean and flexible are what will get you high marks here, than a structure that is rigid, bureaucratic, and has many layers.

5 1.1 Leadership System (Cont...)
What Excellent Companies Do Executives spend at least one-day a month interacting with employees, the people who do the “real” work of the organization, and one-day a month with customers Candidates for executive positions demonstrate management styles that are consistent with philosophies such as empowerment, being customer focused, and continual improvement Have a plan to integrate the RBNQA criteria into the daily operation of the business Design organization structures to facilitate high performance on all important measures.

6 1.2 Societal Responsibilities
Describe how the company addresses its responsibilities to society and how the company practices good citizenship.

7 1.2 Societal Responsibilities (Cont...)
What Does This Mean? This part asks for evidence that the company has a systematic approach to improve performance in public health and safety, environmental protection, and corporate citizenship. Companies should have goals for key aspects of performance in these areas, as well as plans to achieve the goals. The company should be a leader and role model for other organizations. The company must also show leadership in corporate citizenship by supporting - and encouraging employee involvement in - schools, community groups, rural development, charities, etc.

8 1.2 Societal Responsibilities (Cont...)
What Excellent Companies Do Set stretch goals to improve performance in areas of public health and environmental protection Go beyond mandated performance levels in public safety, environmental, and other areas of regulation Allocate significant resources for activities that relate to corporate citizenship and support of educational, community, and professional organizations Allow employees time on the job to support professional and community organizations

9 1.2 Societal Responsibilities (Cont...)
Become known as a leader and innovation in areas of environmental protection, public safety, and ethics Allocate significant time and money to charitable or non-profit organizations that have no clear direct benefit for the organization.

10 2.0 Customer Focus This criterion asks how you identify customers and their requirements and manage relationships that keep them satisfied. Part 2.1 asks how you identify customers and define their needs. Part 2.2 asks how you win and keep customers and addresses customer satisfaction measures. In addition, part 2.3 asks for customer satisfaction determinants.

11 2.1 Customer and Market Knowledge
Describe how the company determines longer-term requirements, expectations, and preferences of target and/ or potential customers and markets. Describe also how the company uses this information to understand and anticipate needs and to develop business opportunities.

12 2.1 Customer and Market Knowledge (Cont...)
What Does This Mean? If you were to write an application for the RBNQA, this might be the part to start with because it defines what the organization does. This part asks, “Who are your customers and what do they want from your products/services?” You need to list the markets or industries you currently sell to, and explain how you determine each customer type’s wants and expectations. It is important not only to use several methods to identify customer requirements, but to use them often. Customers’ wants and expectations change frequently.

13 2.1 Customer and Market Knowledge (Cont...)
This part also asks about future customers, and what their requirements will be. These are tough questions to answer; however, the most successful companies today look at industry trends and predict how they will impact their products/services. Successful companies also look beyond current customers and identify new industries or types of customers. As with all RBNQA parts that ask about approaches, it is important to show a trend of continuously evaluating and improving methods of identifying customer requirements.

14 2.1 Customer and Market Knowledge (Cont...)
What Excellent Companies Do Clearly identify customers and segment them by market, geography, or other categories Use a variety of methods to identify customer requirements and priorities Continuously evaluate and improve methods to determine customer requirements Conduct research to identify potential future customers and their needs Identify the requirements of noncustomers or customers of competitors.

15 2.2 Customer Relationship Management
Describe how the company provides effective management of its responses and follow-ups with customers to preserve and build relationships and to increase knowledge about specific customers and about general customer expectations.

16 2.2 Customer Relationship Management (Cont...)
What Does This Mean? This part asks how you keep customers happy once you have won their business. Most organizations spend more money to gain customers than they do to retain customers. This part asks for evidence of a proactive approach to keeping customers satisfied on an ongoing basis. Another dimension of keeping customers satisfied is providing an easy outlet for their complaints. Have a system for tracking all complaints (versus only those that come in by letter), and promptly resolve complaints when they occur. When customers complain, it is an opportunity to win back their trust and good will. This section asks for evidence that you have an effective system for tracking and resolving complaints and for continually learning more about customer needs.

17 2.2 Customer Relationship Management (Cont...)
What Excellent Companies Do Hire the best and brightest customer contact people, pay them well, thoroughly train them, and give them the authority to solve customer problems without checking with management Define measurable service standards and measure performance against them Provide toll-free help lines or conveniences to make it easy to get information Track all complaints, no matter how minor, and quickly resolve complaints

18 2.2 Customer Relationship Management (Cont...)
Develop specific service standards and monitor performance against standards Accumulate information on customers in a central database so that this intelligence can be used to drive improvement.

19 2.3 Customer Satisfaction Determination
Describe how the company determines customer satisfaction, customer repurchase intentions, and customer satisfaction relative to competitors.

20 2.3 Customer Satisfaction Determination (Cont...)
What Does This Mean? Part 2.3 asks how you learn about customer requirements. This part refers to how you measure what customers think of your products/services after they are purchased. You should explain in general how you measure customer satisfaction in part 4.1. This part provides an opportunity to go into more detail. You should have hard and soft measures of customer satisfaction. Hard measures are measures of customers’ actual buying behaviour. Soft measures are opinions, gathered through surveys, interviews, and focus groups.

21 2.3 Customer Satisfaction Determination (Cont...)
Along with a good mix of hard and soft customer satisfaction data, it is much better to tailor measurements to the markets, or types of customers you sell to, rather than use a generic customer satisfaction survey for everyone. Finally, it is important to continually improve methods used to measure customer satisfaction.

22 2.3 Customer Satisfaction Determination (Cont...)
What Excellent Companies Do Collect a good mix of hard and soft measures of customer satisfaction Define customer satisfaction levels compared to key competitors and industry averages Summarize various measures of customer satisfaction in a Customer Satisfaction Index (CSI) Focus on measuring value as well as customer satisfaction.

23 3. Strategic Planning Criterion 3.0 asks about annual and longer-term planning processes. It is the only section that gives credit for intentions rather than accomplishments. Part 3.1 asks about strategy development and part 3.2 asks about the company’s actual goals and plans.

24 3.1 Strategy Development Describe the company’s strategic planning process for overall performance and competitive leadership for the long-term and short-term. Describe also how this process leads to the development of key business drivers to serve as the basis for deploying plan requirements throughout the company.

25 3.1 Strategy Development (Cont...)
What Does This Mean? The focus of this part is how annual operating plans and longer-term strategic business plans are developed. Planning should not be done in a vacuum. It is important that you show how projections of future customers and markets and their most important requirements are used to develop key goals and strategies for the future. Plans must be based upon data not only from customers and competitors, but from suppliers, employees, and the overall business environment. It is also important that the planning process be quick and efficient. Many large corporations spend far too many months developing and revising plans.

26 3.1 Strategy Development (Cont...)
What Excellent Companies Do A thorough situation analysis is done that looks at company strengths, weaknesses, opportunities, and threats Planning is done from the top down as well as from the bottom up Customers, suppliers, and employees all have input into annual and longer-term plans Plans are communicated to all employees in a format that they can understand Annual operating and longer-term strategic plans are written in a one- to-two-month period with minimal drafts

27 3.1 Strategy Development (Cont...)
Annual and longer-term strategic plans are actually used to manage the organization Performance against plan is reviewed on a regular basis, and plans are changed as necessary The focus of the process is on strategic thinking, rather than creating a binder.

28 3.2 Strategy Deployment Summarize the company’s key business drivers and how they are deployed. Show how the company’s performance projects into the future relative to competitors and key benchmarks.

29 3.2 Strategy Deployment (Cont...)
What Does This Mean? In this section, you take the key customer requirements outlined from part 2.1, and the chosen direction of the organization outlined in 1.1, and explain where you are going in the future. You need to project the key factors that will determine your success in the future (eg, lowest price, best delivery times, etc). On the basis of these success requirements for each of your major markets, you need to define short-and long-term goals for each of the major performance measures identified in part 4.1 You also need to explain what resources and strategies will be used to achieve the goals. An approach for cascading the overall company goals down to individual units, locations, and functions should also be described. The criterion also asks for evidence that your human resource goals and plans are well integrated with your overall business plans. Next, you need to explain where you will be relative to key competitors and comparative organizations if you were to achieve all of your goals.

30 3.2 Strategy Deployment (Cont...)
What Excellent Companies Do Identify key business drivers or success factors critical to future success Write annual and longer-term goals for each major performance measure Set goals on the basis of customer requirements, competitor performance, and your own capabilities/resources Develop measurable human resource goals and key strategies that are limited to overall business plans

31 3.2 Strategy Deployment (Cont...)
Adapt or change goals and strategies quickly as the business environment changes will be used Define exactly what strategies to achieve each of the goals Predict how achievement of the goals will change the organization’s position in the marketplace during the next five years.

32 4. Information and Analysis
Criterion 4.0 is the foundation of the seven criteria. It addresses how success is measured and data are used to make business decisions. Part 4.1 asks how measurements are determined, and how the database has been improved. Part 4.2 asks about information gathered on competitors and world-class companies that are not necessarily competitors. Part 4.3 asks how data are summarized, analyzed, and used for decision making.

33 4.1 Management of Information and Data
Describe the company’s selection and management of information and data used for planning, management, and evaluation of overall performance.

34 4.1 Management of Information and Data (Cont...)
What Does This Mean? This part asks if you are measuring the right things and keeping a balanced scorecard. Measures must relate to your key business drivers and success factors and relate to your vision and values. These criteria should select the “vital few” of the many variables that could be measures. It is important that you have a well-balanced set of measures. Your database should include short-term measures such as operational and financial metrics, as well as longer-term measures such as customer satisfaction, market growth, and employee satisfaction. You must continuously refine your measures.

35 4.1 Management of Information and Data (Cont...)
This is one of the most important parts in the RBNQA criteria. If you select the wrong things to measure, this will impact your scores in all of the result areas, which amount to almost 50 per cent of the points. Selecting the wrong measures or having a poor measurement system will also impact your score in the strategic planning section (3.0).

36 4.1 Management of Information and Data (Cont...)
What Excellent Companies Do Use key business strategies and their vision to select performance measures for their scorecard Keep the number of measurement indices that managers regularly review to no more than 20. Include a balance of measures that focuses on the past, present, and future and that relates to the needs of shareholders/owners, customers, and employees Have roughly the same number of measures and data in each section of the company’s overall scorecard of metrics

37 4.1 Management of Information and Data (Cont...)
Refine the database to eliminate useless data and add more meaningful or precise measures Communicate performance data in simple, consistent graphs across the organization.

38 4.2 Competitive Comparisons and Benchmarking
Describe the company’s processes and uses of comparative information and data to support improvement of overall performance.

39 4.2 Competitive Comparisons and Benchmarking (Cont...)
What Does This Mean? This part covers what a company knows about competitors and other organizations against which it compares itself. This part asks for evidence that you understand who your competitors are and that you regularly collect relevant data on them. You might also compare your organization to other similar companies to learn from their best practices (benchmarking). Competitor and comparative data should be used to set stretch goals for performance, and good ideas from benchmarked companies can be used to improve processes. You will also need to develop ways to evaluate and improve gathering and use of comparative and competitor data.

40 4.2 Competitive Comparisons and Benchmarking (Cont...)
What Excellent Companies Do Have specific criteria to select processes to benchmark or compare to others Have specific criteria to decide the types of data to be collected, competitors it will be collected on, and companies to which to compare Collect a great deal of data on current and future competitors’ products/services and strategies Continually update competitor data Conduct a wide variety of comparative/benchmarking studies using a consistent, systematic approach

41 4.2 Competitive Comparisons and Benchmarking (Cont...)
Communicate results of comparative studies throughout the organization Use competitor/comparative data to set stretch goals and drive process improvements Continually evaluate and improve processes to collect competitive and comparative data.

42 4.3 Analysis and Uses of Company-Level Data
Describe how data related to quality, customers and operational performance, together with relevant financial data, are analyzed to support company-level review, action and planning.

43 4.3 Analysis and Uses of Company-Level Data (Cont...)
What Does This Mean? Most organizations collect a great deal of data, but business decisions are often based on instinct and experience. This item looks for evidence that data are used to make business decisions, and explores how various types of data are summarized. The criteria asks how individual indices are summarized into single measures or ratios. For example, several measures might be summarized into an index. This item also asks if data on customer satisfaction, operational performance, and financial factors are considered together to make business decisions. For example, improving customer satisfaction or product/service quality often costs

44 4.3 Analysis and Uses of Company-Level Data (Cont...)
money. The impact improvements could have on other areas should be analyzed to ensure they warrant the investment. The RBNQA criteria explain that this is the “central intelligence item” in the entire system. A poor job of summarizing and analyzing data will impact your scores in the sections that deal with areas of planning, process management, and results.

45 4.3 Analysis and Uses of Company-Level Data (Cont...)
What Excellent Companies Do Hold regular meeting at all levels to analyze performance data Summarize individual metrics into aggregate indices or ratios where appropriate, such as a Customer Satisfaction Index (CSI) Prioritize performance measures on the basis of strategy and key success factors Conduct research to establish correlation among individual metrics on the company scorecard

46 4.3 Analysis and Uses of Company-Level Data (Cont...)
Spend as much time focusing on measures that lead to future successes as metrics that relate to past and present performance Actually use data/facts to make business decisions Show how changes in quality/customer satisfaction impact financial performance Continually improve data analysis processes.

47 5. Human Resource focus Criterion 5.0 addresses the approaches you use with employees to achieve consistently effective performance. The four parts address human resource planning and evaluation (5.1), high performance work system (5.2), employee education, training and development (5.3), and employee well-being (5.4).

48 5.1 Human Resource Planning and Evaluation
Describe how the company’s human resource planning and evaluation are aligned with its strategic and business plans and address the development and well-being of the entire workforce.

49 5.1 Human Resource Planning and Evaluation (Cont...)
What Does This Mean? The first issue to address in this part is, how your company’s various human resource goals and plans relate to the overall quality initiatives outlined in 3.0 Strategic Planning. Keep in mind that the strategic plan should drive the human resource strategy, and not vice-versa. As with most plans, human resource plans and priorities must retain some elasticity, as trends and conditions change.

50 5.1 Human Resource Planning and Evaluation (Cont...)
What Excellent Companies Do Derive human resource plans from the strategic plan Establish goals for empowering employees, based on capabilities of processes Establish process ownership and goals Reward and recognize based on achievement of process goals Audit, review and improve the human resource planning process.

51 5.2 High Performance Work Systems
Describe how the company’s work and job design and compensation and recognition approaches enable and encourage all employees to contribute effectively to achieving high performance objectives.

52 5.2 High Performance Work Systems (Cont...)
What Does This Mean? This part asks how you have designed your organization’s structure and jobs to facilitate flexibility, speed and the delight of customers. Ad hoc quality teams or committees will not receive much credit. The criteria are asking about fundamental changes in the way work is done by employees. Jobs and structures must promote efficiency, flexibility, and satisfaction of employees. The key is to have a human performance system that drives the right behaviour.

53 5.2 High Performance Work Systems (Cont...)
Approaches to compensate and recognize employees for high performance are also asked about in this section. Financial and non-financial rewards should be available to all individuals and teams of employees based upon achievement of high levels of performance. Employee-of-the-month, an annual five per cent raise, or other typical approaches will not score high in this section. The criteria are asking for evidence that all employees are treated like business partners and that creativity and effort are incorporated into employee recognition methods.

54 5.2 High Performance Work Systems (Cont...)
What Excellent Companies Do Design job and organization structures to promote empowerment, efficiency, employee development, and elimination of nonvalue-added efforts Empower employees and teams to implement suggestions rather than relying on suggestion systems Eliminate functional departments and layers of management where possible

55 5.2 High Performance Work Systems (Cont...)
Employ many recognition programmes tailored to individual and group preferences and refine them All employees have a significant (20 per cent or more) portion of their pay at risk, which is based on financial, operational, customer, and employee satisfaction performance

56 5.3 Employee Education, Training and Development
Describe how the company’s education and training address company plans, including building company capabilities, and contribute to employee motivation, progression, and development.

57 5.3 Employee Education, Training and Development (Cont...)
What Does This Mean? This part addressed all types of employee training and development: orientation, leadership, safety, performance improvement, technical skills training. It is important that you show evidence of a systematic needs analyses that determines who needs which training when, as well as planned follow-up to ensure the skills learned in the classroom are used on the job. It is not enough to provide employees with training. It is more important to tailor training to individual needs, and collect data to prove the training is effective. Effectiveness is determined by measuring learning and the extent job performance measures improve after training. Information on improvement in both the amount and effectiveness of training should also be included.

58 5.3 Employee Education, Training and Development (Cont...)
What Excellent Companies Do Invest up to five per cent of payroll costs on training each year Perform systematic needs analyzes to determine training needs for all employees Develop curriculums for all key functions/positions Match training media and delivery methods to content and audience characteristics Deliver training in a just-in-time fashion and plan follow-up activities to ensure skills learned in training are used on the job

59 5.3 Employee Education, Training and Development (Cont...)
Evaluate training based on trainee reaction, learning, behaviour change, and job performance improvement Continually improve training on the basis of feedback.

60 5.4 Employee Well-Being Describe how the company maintains a work environment and a work climate conducive to well-being and development of employees.

61 5.4 Employee Well-Being (Cont...)
What Does This Mean? Leading companies today believe employees must be delighted with the organization before they will go out of their way to delight customers. Many factors - safety, pay, benefits, job design, work environment, workload - contribute to employee satisfaction. This item asks how your organization ensures employees are very happy with their work. It is important to do more than the basics.

62 5.4 Employee Well-Being (Cont...)
This section also asks how employee satisfaction is measured. Employee satisfaction results are reported in part You should have both hard measures of employee satisfaction such as turnover, grievances, and absenteeism, and soft measures such as employee morale or climate surveys. In addition, this section asks for evidence that you have a systematic prevention-based approach to safety and employee health.

63 5.4 Employee Well-Being (Cont...)
What Excellent Companies Do Focus on delighting employees rather than simply satisfying them Establish goals for safety and employee satisfaction based on world- class companies Implement a prevention-based approach to safety and employee health Offer pay, benefits, and special services that are better than others in the industry and geographic area Frequently collect data on a wide variety of measures of employee satisfaction

64 5.4 Employee Well-Being (Cont...)
Communicate that personal/family lives are more important or just as important as work Establish systems for building and maintaining a loyal work force.

65 6. Process Management Criterion 6.0 defines how key processes are managed and controlled. Part 6.1 asks how new products/services are designed, and how work processes are managed and improved asks for similar information for support areas such as finance or purchasing asks how suppliers and partners are managed.

66 6.1 Management of Product and Service Processes
Describe how products and services are designed, implemented, and improved. Describe also how production/delivery processes are designed, implemented, managed and improved.

67 6.1 Management of Product and Service Processes (Cont...)
What Does This Mean? This part requires a systematic approach to the design of new products or services that is driven by customer needs, and involves all appropriate functions. Evidence should show how your product/service design process is systematic and timely. Product and service design is not just the responsibility of research and engineering. Every function has products and services (eg, a new financial report or performance appraisal system) that should be based on customer requirements.

68 6.1 Management of Product and Service Processes (Cont...)
This part also asks you to identify and measure key processes. You will explain your standards and how you keep process performance within acceptable limits. In identifying key processes, list the five to eight major activities you perform in your plant, or in the service delivery portion of your business. A matrix that lists key processes, measures, standards, and control strategies will help you respond to this item. Evaluate processes to identify opportunities for improvement. Improvement ideas might come from research, benchmarking, new technologies, or customers. This part also asks which key processes have been improved and how extensive the changes or improvements have been.

69 6.1 Management of Product and Service Processes (Cont...)
What Excellent Companies Do Design new products and services on the basis of current and projected future customer requirements and priorities Involve a wide variety of disciplines or departments in the design process Define key processes and process measures on the basis of customer requirements Define and implement strategies to keep each process measure in control Use a variety of sources of information to proactively look for ways of improving processes.

70 6.2 Management of Support Processes
Describe how the company’s key support processes are designed, implemented, managed, and improved.

71 6.2 Management of Support Processes (Cont...)
What Does This Mean? This part requires the same information as the previous section, however, it is relative to support processes. If an entire company is being evaluated, this section would include all support functions such as finance, purchasing, engineering, human resources, information systems, sales/marketing, R&D facilities, and legal. For each support area, key processes, measures, standards, and control strategies would be defined. In the case of an individual facility or plant, this part would examine the administrative or support processes. If the scope of the evaluation is a department, this part would ask about administrative functions or processes.

72 6.2 Management of Support Processes (Cont...)
As in part 6.1 this section asks about how opportunities to improve processes are initiated and how key processes have been reengineered. For example, perhaps you have completely changed the way the company purchases or has implemented a new approach to performance appraisal. Comparisons to other companies should be used to initiate process improvement ideas.

73 6.2 Management of Support Processes (Cont...)
What Excellent Companies Do Identify the most important support processes on the basis of the needs and requirements of both internal and external customers Identify and collect data on key measures for each of the major support processes Define standards or control limits for each process measure Use a systematic proactive process to identify process improvement opportunities in support areas Measure levels of internal customer satisfaction for each major support function Continually improve key support processes.

74 6.3 Management of Supplier Performance
Describe how the company assures the materials, components, and services furnished by other businesses meet the company’s performance requirements. Describe also the company’s actions and plans to improve supplier relationships and performance.

75 6.3 Management of Supplier Performance (Cont...)
What Does This Mean? This part asks for evidence that the organization helps suppliers and partners with their performance. The first step is to explicitly define your requirements. Make sure suppliers know exactly what you want and expect of them. Many companies include suppliers in training programmes. Many also certify suppliers. It is important to work with suppliers to help them improve, rather than simply demanding that they meet your standards for quality and price or you will find someone else who will.

76 6.3 Management of Supplier Performance (Cont...)
Selecting suppliers on price, and always getting competitive bids, is not the approach this section looks for. Rather, the trends in companies that do well on this item are: narrowing the number of suppliers to a few key companies with proven records of exceptional quality at fair prices and trusting suppliers more.

77 6.3 Management of Supplier Performance (Cont...)
What Excellent Companies Do Thoroughly define requirements for all suppliers/partners and regularly measure how well they meet requirements Reduce the overall number of suppliers to companies with proven track records Cease reliance on inspection of incoming supplier materials and rely on suppliers to inspect their own products Require suppliers/partners to implement the basics of the RBNQA criteria and help them by providing training and coaching Establish long-term partnering relationship with key suppliers/partners who have proven they can meet or exceed your requirements.

78 7. Business Results Criterion 7.0 is the most important of the seven criteria and is worth almost half the total points in the RBNQA assessment. All the important results a company tracks are reported here. There are five parts in this criterion. Part 7.1 asks for customer satisfaction results; 7.2 asks for employee satisfaction results; 7.3 asks for community satisfaction results; 7.4 asks for financial results; and 7.5 asks for nonfinancial results. In each part, examiners look for improvement trends and exceptional levels of current performance, compared to competitors and benchmarks.

79 7.1 Customer Satisfaction Results
Describe the company’s customer satisfaction and dissatisfaction results.

80 7.1 Customer Satisfaction Results (Cont...)
What Does This Mean? This part asks for graphs of customer satisfaction performance over the past few years. The more years that can be included, the better. As with the other items that ask for results, there are three dimensions of evaluation: levels, trends, and variability. Data on how customer satisfaction levels compare to those of competitors are also asked for in this item. Data on soft measures of customer satisfaction from surveys or focus groups should be presented with data on hard measures of buying behaviour. (eg, repeat/lost customers, or returns). Measures of dissatisfaction should also be presented. To evaluate trends, all graphs should include relevant comparative data and benchmarks.

81 7.1 Customer Satisfaction Results (Cont...)
Results in Excellent Companies Customer satisfaction data are segmented by market or customer type as appropriate, and all graphs show excellent improvement trends No graphs of customer satisfaction data show flat or declining performance, and any dips in performance are satisfactorily explained All major indicators of customer dissatisfaction show declines over the past five or more years, as well as overall excellent levels of performance Trends over the past three or more years show continual improvement in hard measures of customer satisfaction

82 7.1 Customer Satisfaction Results (Cont...)
Levels of performance on hard measures of customer satisfaction show the best performance in the industry on almost all graphs, and benchmark or world-class levels of performance on several graphs.

83 7.2 Employee Satisfaction Results
Describe the company’s employee satisfaction and dissatisfaction results.

84 7.2 Employee Satisfaction Results (Cont...)
What Does This Mean? This part asks for levels and trends in key human resource measures such as safety, turnover, employee morale, and absenteeism. Other measures identified in section 5.0 might also have results presented here. For example, training effectiveness measures, or percentage of employee suggestions implemented. Other statistics might also be presented regarding measures such as recognition of employees or compensation. Comparative data on how human resource performance compares with competitors, industry averages, and benchmarks should also be presented, if appropriate.

85 7.2 Employee Satisfaction Results (Cont...)
Results in Excellent Companies Safety results show that impressive improvement trends and/or levels of performance are superior to industry averages and competitors Measures of employee satisfaction indicate that the company “delights” its employees Hard measures of employee satisfaction such as absenteeism and voluntary turnover show improving trends and levels above those of competitors No human resource performance measures show declining trends or levels that are inferior to industry averages or major competitors Results are presented for all key human resource measures indicated in section 5.0.

86 7.3 Community Satisfaction Results
Describe the company’s community satisfaction and dissatisfaction results.

87 7.3 Community Satisfaction Results (Cont...)
What Does This Mean? This part asks for graphs of community satisfaction performance over the past few years. The more years that can be included, the better. As with the other items that ask for results, there are three dimensions of evaluation: levels, trends, and variability. Data on how community satisfaction levels compare to those of competitors are also asked for in this part. Data on soft measures of community satisfaction, from surveys or focus groups should be presented with data on hard measures of deeds done.

88 7.3 Community Satisfaction Results (Cont...)
Results in Excellent Companies Community satisfaction data are segmented by broad activity and all graphs show excellent performance trends No graphs of community satisfaction data show flat or declining performance, and any dips in performance are explained All major indicators of community dissatisfaction, show declines over the past five or more years, as well as overall excellent levels of performance.

89 7.4 Financial Measures of the Company’s Success
Summarize the company’s key financial performance results.

90 7.4 Financial Measures of the Company’s Success (Cont...)
What Does This Mean? This part asks for financial results. Financial results are the typical financial measures companies collect data on, such as sales, profits, return on investment. All key financial measures should be identified in You should have graphs on each of these measures for the last five years or more. As with previous parts, results in this area are evaluated by looking at levels, trends, and variability.part asks for graphs of community satisfaction performance over the past few years. The more years that can be included, the better. As with the other items that ask for results, there are three dimensions of evaluation: levels, trends, and variability.

91 7.4 Financial Measures of the Company’s Success (Cont...)
Results in Excellent Companies Key financial results for five or more years show a trend of progressive improvement Profits show a level of performance that is at or above the best companies in the industry The company has clear cause-effect data that show that investments in improvement initiatives have paid off on the bottom line Financial measures show benchmark levels of performance, or at least a continual improving trend, over five or more years No graphs of financial indicators show performance to be flat or getting worse over the past few years Dips in performance have been thoroughly analyzed and the factors causing these drops in performance have been corrected.

92 7.5 Non-Financial Measures of the Company's Success
Summarize the company’s key nonfinancial performance results.

93 7.5 Non-Financial Measures of the Company's Success (Cont...)
What Does This Mean? In part 4.1 you identified how a well-balanced set of matrics is measured: process measures, product/service quality, supplier performance, safety/health/environment, etc. Most companies use a mix of hard data and soft data to measure performance. Hard data could be returns of defective merchandise, percentage of defectives parts/materials or delivery dates missed. Soft measures could be ratings of responsiveness or courtesy.

94 7.5 Non-Financial Measures of the Company's Success (Cont...)
Results in Excellent Companies Strong improvement trends in the performance of the company’s major processes are evident over the past few years The company has shown a reduction over the past few years in the order processing time, complaint resolution time, inventory turnover time, etc The company has shown a reduction over the past few years in the overall number of suppliers it buys goods and services from.

95 Thank You


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