A Comparison Between

The Tata Business Excellence Model and

The CIIEXIM Bank Business Excellence Model

M Venkat Ram TATA POWER

THE EFQM EXCELLENCE MODEL

ENABLERS 500 POINTS

RESULTS

500 POINTS

PEOPLE
90 POINTS P R O C E S S E S 140 POINTS

PEOPLE RESULTS 90 POINTS

KEY PERFORMANCE RESULTS 150 POINTS

LEADERSHIP

100 POINTS

POLICY & STRATEGY 80 POINTS PARTNERSHIPS & RESOURCES 90 POINTS

CUSTOMER RESULTS 200 POINTS

SOCIETY RESULTS 60 POINTS

INNOVATION & LEARNING

The EFQM B E Model

Results : Enablers :

What has the organisation achieved; How are the results being achieved;

500 points 500 points

The Philosophy Excellent results with respect to: Performance, Customers, People and Society are achieved through Leadership driving Policy & Strategy, People, Partnerships & Resources and Processes.

THE R A D A R

APPROACH

Results

Determine results we are aiming for as a part of our Policy & Strategy; cover both Financial & Operational Results; cover Perceptions of its Stakeholders What are the Approaches we have designed to deliver the results

Approach

Deployment

How have we deployed the approaches in a systematic way

Assessment

Monitor & analyse the results achieved;

&
Review Plan & implement improvement

Tata Business Excellence Model

Frame Work
Organizational Profile Environment, Relationships &Challenges
Strategic Planning 85 points Human Resource Focus 85 points

Leadership 120 points

Business Results 450 points

Customer & Market focus 85 points

Process Management 85 points

Measurement, Analysis & Knowledge Management

JRDQV AWARD EVOLUTION

Baldrige Award through Improvement Act approved by President Ronald Reagan : 1987

JRDQV Award based on Baldrige Award derived Tata Business Excellence Model instituted:1994-95
Administered by TQMS

EFQM Model
Enablers 500 points (50 %) Results 500 points (50 %)

People 90 points (9 %)

People Results 90 Points ( 9%)

Customer Results 200 Points (20 %) Key Performance Results 150 points (15 %)

Leadership 100 points (10 %)

Policy & Strategy 80 points (8 %)

Processes 140 points (14 %)

Partnerships & Resources 90 points (9 %)

Society Results 60 points (6 %)

INNOVATION & LEARNING

CII-EXIM Bank AWARD EVOLUTION

EFQM formed: 1988 European Quality Award (with inputs from Baldrige, Juran, Deming etc.) launched: 1991 Award adopted by CII-EXIM Bank : 1994

Administered by CII with technical support from EFQM

With Baldrige Model as reference, differences in EFQM Model are indicated in red in the following slides

TBEM and EFQM Philosophies

Objectives identical Predominantly similar Differences small but significant, wherever explicit in model TBEM approach A + D + AR > R (now A-D-L-I) EFQM approach R A D A R (Deming P D C A based) Explicit emphasis on :
desired results appropriate targets linked approach structured, planned deployment yielding desired benefits trigger associated with approach improvement clear approach linked result improvement

Tata Business Excellence Model

Frame Work
Organizational Profile Environment, Relationships &Challenges
Strategic Planning 85 points Human Resource Focus 85 points

Leadership 120 points

Business Results 450 points

Customer & Market focus 85 points

Process Management 85 points

Measurement, Analysis & Knowledge Management

TBEM Structure
Core Values

Categories
Items Areas to address Sub areas

EFQM Model
Enablers 500 points (50 %) Results 500 points (50 %)

People 90 points (9 %)

People Results 90 Points ( 9%)

Customer Results 200 Points (20 %) Key Performance Results 150 points (15 %)

Leadership 100 points (10 %)

Policy & Strategy 80 points (8 %)

Processes 140 points (14 %)

Partnerships & Resources 90 points (9 %)

Society Results 60 points (6 %)

INNOVATION & LEARNING

EFQM Structure
Fundamental Concepts of Excellence Criterion Criterion Parts

Comparison Of Structures
TBEM EFQM

Core Values

Fundamental concepts of excellence

Criterion ---------------- Criterion parts -----------------

Categories Items Areas to address Sub-areas

TBEM Core Values & Concepts

Visionary Leadership Customer-driven excellence Organizational and Personal Learning Valuing Employees & Partners Agility

Focus on the future

Managing for innovation Management by fact Social responsibility Focus on Results & Creating Value Systems Perspective

EFQM - Fundamental Concepts Of Excellence

Results Orientation Customer Focus Leadership & Constancy of Purpose

Management by Processes & Facts

People Development & Involvement Continuous Learning , Innovation and Improvement Partnership Development Corporate Social Responsibility

Comparison
TBEM Model
Visionary Leadership Customer-driven Excellence Results Orientation

EFQM Model

Organizational & Personal Learning

Valuing Employees & Partners Agility Focus on the Future Managing for Innovation Management by Fact Social Responsibility Focus on Results & Creating Value Systems Perspective

Customer Focus
Leadership & Constancy of Purpose Management by Processes & Facts People Development & Involvement Continuous Learning, Innovation & Improvement Partnership Development Corporate Social Responsibility

EFQM Model Structure

Criterion 1 Leadership & Constancy of Purpose
1a . Leaders develop mission,vision,values & ethics & are role models of a culture of Excellence 1b. Leaders are personally involved in ensuring the organization's management system is developed, implemented & continuously improved. 1c. Leaders interact with customers, partners & representatives of society 1d. Leaders reinforce a culture of Excellence with organizations people 1e. Leaders identify & champion organizational change

EFQM Model Structure

Criterion 2 Policy & Strategy
2a . Policy & Strategy are based on the present & future needs and expectations of stakeholders 2b. Policy & Strategy are based on information from performance measurement, research, learning & external related activities 2c. Policy & Strategy are developed, reviewed & updated 2d. Policy & strategy are communicated & deployed through a framework of Key processes.

EFQM Model Structure

Criterion 3 People
3a . People resources are planned,managed and improved 3b. Peoples knowledge & competencies are identified, developed & sustained

3c. People are involved and empowered

3d. People and the organization have a dialogue 3e. People are rewarded, recognized and cared for

EFQM Model Structure

Criterion 4 Partnerships & Resources
4a. External partnerships are managed 4b. Finances are managed 4c. Buildings, equipment and materials are managed 4d. Technology is managed 4e. Information and knowledge are managed

EFQM Model Structure

Criterion 5 Processes
5a. Processes are systematically designed and managed
5b. Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stake holders 5c. Products & Services are designed & developed based on customer needs & expectations 5d. Products & Services are produced delivered & serviced 5e. Customer relationships are managed and enhanced

EFQM Model Structure

Criterion 6 Customer Results
6a. PERCEPTION MEASURES Image (accessibility, responsiveness, etc.) Products and Services Sales and after sales support Loyalty

6b. PERFORMANCE INDICATORS Image (number of customer accolades, award nominations etc) Products and Services Sales and after sales support Loyalty

EFQM Model Structure

Criterion 7 People Results
7a. PERCEPTION MEASURES Motivation Satisfaction
7b. PERFORMANCE INDICATORS Achievements Motivation and involvement Satisfaction Services provided to the organization's people

EFQM Model Structure

Criterion 8

Society Results
8a. PERCEPTION MEASURES Image Performance as a responsible citizen : Involvement in the communities where it operates : Reduction & prevention of nuisance & harm from its operations and /or throughout the life cycle of its products and services Reporting on activities to assist in the preservation & sustainability of resources
8b. PERFORMANCE INDICATORS Handling changes in employment levels Dealings with authorities on issues such as: certification, clearances, import / export , planning, product release. Accolades and awards received

EFQM Model Structure

Criterion 9 KEY PERFORMANCE RESULTS
9a. KEY PERFORMANCE OUTCOMES Financial Outcomes
1. 2. 3. 4. Market related &general data (sales, share price, dividends etc.) Profitability (gross margins, EPS, earnings before interest & tax , contribution margin etc.) Investment & asset related information (ROIC, RONA , ROCE etc.) Budgetary Performance (Performance against organization or unit budgets)

Non- Financial Outcomes 1)market share, 2)time to market, 3)success rates,

4) Volumes & 5)Process performance.

9b. KEY PERFORMANCE INDICATORS Financial 1)cashflow, 2) depreciation, 3)maintenance costs 4)Project costs,5)credit ratings Non-Financial 1) Processes (performance ; assessments ; innovations ; cycle times)
2) External resources including partnerships (supplier performance ; supplier price ; number & value added of partnerships ; number & value added of joint improvement with partners ) 3) Buildings ,equipment & materials : ( defect rates ; inventory turn over ; utilization ) 4) Technology : ( innovation rate , value of intellectual property; patents ; royalties); 5) Information and knowledge : (accessibility ; integrity ; value of intellectual capital)

Assessment Dimensions -ENABLERS

Approach Deployment

Assessment & Review

Approach
Is the approach Soundly based

Focused on stakeholder needs

Supporting policy and strategy Linked with other appropriate approaches Sustainable Innovative Flexible Measurable

Deployment
Is the deployment of the approach Implemented in all potential areas across the organization Implemented to its full potential or capability Achieving all the planned benefits Systematic Understood & Accepted By All Stakeholders Measurable

Assessment & Review

Is the approach and its deployment : Measured for effectiveness regularly Providing Learning opportunities Benchmarked with others, e.g. competitors, industry average or best in class Improved based on the outputs from learning and performance measures

Trigger Points
Changes in organizations initiated due to several trigger points-external, internal. Excellent Orgns have a sound system to measure, review and proactively pick up triggers for change rather than merely reacting to external/internal pressures or failures. They will have a balanced set of trigger points

Typical Triggers:
Vision/Mission/Values Company Plans Learnings of Teams: Benchmarking Self-Assessment R&D Internal Audits Market Research Management Reviews People and Partner Ideas Customer Demands (Present) Changes in Competition Changes in Government Policies Changes by Technical Collaborators / Partners Changes in Ownership Changes in Economic Environment Reactions to Problems / Failures

Assessment Dimensions -RESULTS

Do the results Cover all appropriate stakeholders Measure all relevant approaches & deployment of approaches using perception & performance indicators Show +ve trend / sustained good performance. If yes, for how long Have targets? If yes, are the targets achieved? Have comparisons with others, for example, competitors, industry averages or best in class Compare well with others

Show a cause and effect link to approaches

Measure a balanced set of factors both for now & future Give a holistic picture

Scoring Method - Differences

TBEM Scoring done Item wise No weightage for areas to address

(APPROACH DEPLOYMENT CATEGORIES) Approach, Deployment, Maturity Levels -BEST FIT

(RESULT CATEGORY) Reportage, Levels/Trends, Comparison, Linkage -BEST FIT

EFQM Scoring done Criterion PART wise ( i.e. for each area to address) Weightage for each Criterion part Weighted Average for each Criterion part Overall Average for Criterion Score
(ENABLER CRITERIA) Approach, Deployment, Assessment and Review (RESULT CRITERIA) (Trends, Targets, Comparison, Causes, Scope)

RADAR SCORING MATRIX ENABLERS

Eleme nts Score
Attributes

0%

25%

50%

75%

100%

Appr oach

Sound : approach has a clear rationale approach has defined process approach focuses on stakeholder needs Integrated : approach supports policy & strategy approach is linked to other approaches as appropriate Total
No evidence or anecdotal Some Evidence Evidence Clear Evidence Comprehensive Evidence

No results or anecdotal information

Some Evidence

Evidence

Clear Evidence

Comprehensive Evidence

Elem ents Deplo yment

Score Attributes Implemented : approach is implemented

0%

25%

50%

75%

100%

No evidence of implementation

Implementation in about 1/4 of relevant areas

Implementation in about 1/2 of relevant areas

Implementation in about 3/4 of relevant areas

Implementation in all relevant areas

Systematic :

approach is deployed in a structured way with the method used for deployment being planned & executed soundly

No evidence or anecdotal

Some Evidence

Evidence

Clear Evidence

Comprehensive Evidence

RADAR SCORING MATRIX ENABLERS

Elements Attributes Assessm ent & Review Score 0% 25% 50% 75% 100%

Measurement :
regular measurement of the effectiveness of the approach & deployment is carried out No evidence or anecdotal Some Evidence Evidence Clear Evidence Comprehensive Evidence

Learning :
is used to identify best practice & improvement opportunities No evidence or anecdotal Some Evidence Evidence Clear Evidence Comprehensive Evidence

Improvement :
Output from measurement & learning is used to: identify, priorotise,plan & implement improvements No evidence or anecdotal Some Evidence Evidence Clear Evidence Comprehensive Evidence

Total

Overall Total

RADAR SCORING MATRIX RESULTS

Elements Attributes Results Trends :
trends are positive AND / OR there is sustained good performance No results or anecdotal information Positive trends and / or satisfactory performance for about 1/4 of results over at least 3 years Positive trends and / or sustained good performance for about 1/2 of results over at least 3 years Positive trends and / or sustained good performance for 3/4 of results over at least 3 years Positive trends and / or sustained good performance for all results over at least 3 years

Score

0%

100%

200%

300%

400%

Targets :
targets are achieved targets are appropriate No results or anecdotal information Achieved & appropriate for about 1/4 of results Achieved & appropriate for about 1/2 of results Achieved & appropriate for about 3/4 of results Achieved & appropriate for all results

Comparisons :
results compare well with others and/or results compare well with acknowledged ' World Class' No results or anecdotal information Favourable comparisons for about 1/4 results Favourable comparisons for about 1/2 results Favourable comparisons for about 3/4 results Favourable comparisons for all results

Causes :
results are caused by approach No results or anecdotal information Cause & effect visible for about 1/4 results Cause & effect visible for about 1/2 results Cause & effect visible for about 3/4 results Cause & effect visible for all results

Total

Results

Scope :
results address relevant areas results are appropriately segmented e.g.by customer, by business No results or anecdotal information Cause & effect visible for about 1/4 results Cause & effect visible for about 1/2 results Cause & effect visible for about 3/4 results Cause & effect visible for all results

Total

Overall Total

Anecdotal

Basic

Competitive

Advanced

World Class

Thank You