1. Guidelines for Implementing Innovation Excellence Framework in Universities By Dr. Mohd Rashid bin Ab Hamid Universiti Malaysia Pahang (UMP)

2. Achieving Innovation Excellence Framewok through the Performance Measurement System  Historically, performance measurement has meant measuring tangible things … (such as return on investment (ROI), cash flow, increase in revenue and profit)  In recent years, attention and focus have shifted toward measuring intangibles (such as quality, customer satisfaction, and safety)  In light of this transition, researchers began investigating ways of incorporating both financial and non financial performance in an effort to achieve innovation well-being

3. The Value-Based Total Performance Excellence Model (VBTPEM) VBTPEM provides a holistic and comprehensive framework to assess the performance of organisations that incorporates universal (corporate) – core values in the performance measures

4. copyright ADMACS/IKIM The guidelines are based on the Value- based Total Performance Excellence framework that incorporates a well-defined set of organizational core values in each of the performance criteria.

5. OUTLINES 1.Why we need (core) values now? 2.Innovation Excellence Model – The Framework (IEF) i.The Conceptual Framework - Causal Relationships ii.SEM: Measurement & Structural Models iii.PLS-based SEM 3.An Illustration of IEF application - Data & Results

6. WHY WE NEED (CORE) VALUES NOW? 1. Core element in Strategic Management SystemCore 2. Rhetoric-Reality Gap – confuse aspired behavior with actual behaviorGap 3. Values-related events leading to the collapse of giant organisations and Disclosures of malpractices in public organisations – as reported by Auditor General Reportevents

7. In Audit General Report: Dishonesty in spending/claims by public servants Corruption & Abuse of power by heads of departments Lack of urgency by public servants in making decision, resulting in delays in many service deliveries In Audit General Report: Dishonesty in spending/claims by public servants Corruption & Abuse of power by heads of departments Lack of urgency by public servants in making decision, resulting in delays in many service deliveries The collapse of leading corporations (e.g., Enron 2001, Northern Rock 2007, Lehman Brothers 2008, Bernard Madoff) The collapse of leading corporations (e.g., Enron 2001, Northern Rock 2007, Lehman Brothers 2008, Bernard Madoff) Global ScenarioPublic Organisations Lack of financial accountability Lack of transparency in corporate governance Greed & Manipulation of Trust Values-related Crisis – P AST & C URRENT ‘Events’ These past & current ‘events’ – as strong reminders for organisations about the importance of ‘core values’ as the ‘guiding principles’

8. 1.To measure ‘subjective’ core values in most accurate manner – use indicators or proxies 2.To ‘operationalise’ core values as the driving force in the pursuit of performance excellence - make ‘visibility’ of values-related strategies and actions as a formal agenda 3. Existing BEMs such as Malcom Baldrige and EFQM do not address core values in explicit manner, i.e., do not use core values as an independent assessment dimension So we propose the Values-based Total Performance Excellence Model (VBTPEM) as a framework for values- centric BEM by addressing core values explicitly in defining/formulating indicators for measuring relevant performance constructs/dimension/criteria. The Challenges

9. copyright ADMACS/IKIM The Value-Based Total Performance Excellence Model - Framework

10. copyright ADMACS/IKIM Examples of the (Core) Values from successful companies A belief in the important of people as individuals and people are treated with respect (e.g., Citibank) A belief that most members of the organisation should be innovators and a corresponding willingness to support failure (e.g., Hewlett Packard) A belief in the importance of the details of execution, the nuts and bolts of doing the job well ( e.g., Pepsi Cola) A belief in superior quality and service (e.g., Proctor & Gamble) Respect for People Innovation & Tolerance Meticulous / Thorough Quality Core Values Statement Core Values

11. Implementing Innovation Excellence Framework (IEF) THE BASELINE ASSESMENT USING IEF VALUE-BASED INTERVENTION PROGRAM POST-EVALUATION OF ORGANISATION PERFORMANCE EXCELLENCE THROUGH IEF To examine the extent to which core values are ‘visible’ and ‘internalised’ in organisations To rectify, accommodate and Instill the missing core-values To assess the impact of The Value-Based Intervention Program

12. 12 Are the Desired Results Met? No Yes Enhance organisation-wide Core Values & organisational Best Practices On-line Survey & Analysis using VBTPEM Automated System Transformation Scheme PROCEED TM Baseline Assessment BASELINE ASSESSMENT & VALUE-BASED TRANSFORMATION

13. Truthfulness Trustworthiness Sincerity Commitment Sense of Direction Competency Rightness Wisdom Harmony Unifying Sustainability Opportunity-Sensing Comradeship Consultation Caring Trust Respect Quality Meaningfulness Good Intention Beneficial Openness Receptiveness Timeliness Respectfulness Non-discriminatory Mutual Interest Responsiveness Interdependence Social Responsibility Effectiveness Appropriateness Optimisation Efficiency Prudence Synergism Exemplary Advancement Mutually Beneficial Universal Achievability Transparency Fairness Consultation Mutual Trust Acknowledgment Altruism Empowerment Beneficial Genuineness Ethical Value -Add Enterprising Competitiveness Efficiency Collectiveness Non-exploitative Economy of Scale Frugality Timeliness Profitability/Cost Saving Regulatory/Shariah Compliance Market Value Stakeholder/Cust. Satisfaction Image/Reputation Loyalty/Retention STRUCTURAL EQUATION MODELING: MEASUREMENT & STRUCTURAL MODELS

14. 012345678910 Rating Scale Degree of ‘Visibility’ of Almost not VisibleSomewhat Visible Fairly Visible Most Visible How do we Measure Values? Example: To measure ‘Committed’ Leadership What’s your rating for the ‘commitment’ of leadership based on how visible (rarely/occasionally/ often) the leadership is seen with subordinates discussing and encouraging them to work towards achieving organizational goals Example: To measure ‘Committed’ Leadership What’s your rating for the ‘commitment’ of leadership based on how visible (rarely/occasionally/ often) the leadership is seen with subordinates discussing and encouraging them to work towards achieving organizational goals

15. THE BENEFITS OF CREATING A VALUES-BASED WORKPLACE Higher employee productivity, engagement and creativity Lower attrition rate Lower absenteeism and lower health-related expenses Better teamwork Loyal customers who are delighted by your energized employees Organisations can gain a reputation as great (most admired) places to work.

16. REFERENCES BOOKS & MONOGRAPH Mokhtar Abdullah, Nooreha Husain, Nik Mustapha Nik Hassan and Mazilan Musa (2003). Value-Based Total Performance Excellence Model: Baseline Assessment Criteria Guidelines for Organisations, Institute of Islamic Understanding Malaysia (IKIM), p. 92. Mokhtar Abdullah, Nooreha Husain, Nik Mustapha Nik Hassan and Mazilan Musa (2003). Essays on ISLAMIC MANAGEMENT & ORGANISATIONAL PERFORMANCE MEASUREMENTS, Institute of Islamic Understanding Malaysia (IKIM), p. 165.

17. REFERENCES JOURNALS 2012 1. Mokhtar Abdullah, Mohd Rashid Ab Hamid, Zainol Mustafa, Nur Riza Mohd Suradi, Fazli Idris, (2012). Value-based Total Performance Excellence Measurement (VBTPEM): A Conceptual Framework for Organisations, Total Quality Management and Business Excellence, DOI: 10.1080/14783363.2011.637786 (ISI INDEXED ; IMPACT FACTOR 0.387) 2. Hamid, M. R. Ab. Mustafa Z., Idris F., Abdullah M., Suradi N. R. M. & Ismail W. R. (2012). Value-Based Performance Excellence Measurement for Higher Education Institution: Instrument Validation, accepted for publication in Quality & Quantity International Journal of Methodology, (ISI INDEXED; IMPACT FACTOR 0.688)

18. copyright ADMACS/IKIM Methodology 012345678910 Interpretation of scale measurement (scale 0 to 10) Rating of ‘Visibility’ Not VisibleSomewhat VisibleVisibleMost Visible Index Scoring & Grading SCALE : 0 - 100 Excellence81 – 100 Good61 – 80 Moderate41 – 60 Poor 0 – 40 The scores for all the corresponding items in the questionnaires are then transformed into the Performance Index which has a scale of 0 to 100. This performance index can lead to organizations becoming focused on reaching a particular number, to the extent of specifying a precise numeric target for the organization to achieve. The four categories used to describe the levels of performance excellence are as shown:

19. Conclusion IEF- A systematic way of identifying the strengths of the innovation capabilities in the universities and improvement opportunities while at the same time monitoring the progress of total performance