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Ruprecht-Karls-Universität HeidelbergFakultät für Verhaltens-und empirische KulturwissenschaftenInstitut für BildungswissenschaftDozent:Prof. Dr. Peter C. Weber Wintersemester2017/2018 Workingpaper Business Excellence | Back to the roots The application ofbusinessexcellencemodels such as EFQMinterpreted by the values andprioritiesof W. EdwardsDeming Vorgelegt von:Marcus B. Hausner Kornbergstraße 13/
[email protected]:3324460Studiengang:ma | bob–Berufs und organisationsbezogene BeratungswissenschaftFach:R-Modul–Rahmenbedingungen derBeratungAbgegeben am:31.Dezember2017 page2 Content 1Introduction.................................................................................................32Application of business excellence models in the organization...................42.1 Benefits and opportunities........................................................................52.2 Barriers and shortcomings........................................................................53W. Edwards Deming | His values and priorities...........................................73.1 Deming | The person................................................................................73.1.1 Values: Family, faith and the arts.......................................................73.1.2 Values: Learning and development....................................................83.1.3 Values: People are people.................................................................83.1.4 Values: Seeing the big picture............................................................83.2 Deming | The 14 points for management..................................................94 Conclusions...................................................................................................105 References....................................................................................................116 Appendix.......................................................................................................13 page3 1Introduction As we move intothe21 st century, quality is becoming a cultural value of the or-ganization.The defining aspect of quality that will increasingly reflect the organi-zation cultureis i. a. thedealing with customers, employees, and the community(Knouse et al.,2009, p. 455).Businessexcellencemodels, like the EFQMmodel,based on aTotalQualityManagementapproach,aredesigned to reflectthe or-ganizations culture and to assessitsstrengths and weaknesses.(Dalluege undFranz,2011, p. 47 f.).The idea for the topic of thisworkingpaperaroseduring the presentationanddiscussionof"Strengths and weaknesses of Business Excellence Models-e.g.the EFQM-Model"(Hausner,2017),held in March 2017duringthe ’ma|bob’ 1 Mod-ule R. As it was stressedat the time, models and tools designed to raise the levelof quality within an organization fail toachievetheir aim when the human side,e.g.empowerment or participationis neglected. During thediscussion,the notionof "notlosingthe spirit of quality management by just managing quality"wastouched on.EdwardsDemings“14 points for management”served as a point of reference to this“spirit”.First the concept ofthebusiness excellencemodel 2 (BEM)is introduced.Basedonexperiencesof BEMsusein organizations,the benefitsofand thebarrierstotheirsuccessful application are discussed.Following abrief overviewofareasinwhich„the spirit of quality” may be lostin the practical application of BEMs,wewill thenshed light on the question: who wasW. EdwardsDeming?Throughafewbiographical aspectsfollowed by an outline of hispersonal valuesas well asanintroduction to his“14 points for management”, we will attempttoidentify whatmight be themessageof thefather ofthe quality movement when it comes topreventingcommon shortcomings in the application of BEMs in the corporateworld.The third part summarizes thesefindings and concludes with anoccasionwhichreflectssome of thepower andimpactof Demings life. 1 Master Studies of Counselling Sciences at the University Heidelberg 2 In thispaper,the terms“EFQMmodel”and“Businessexcellence model”are used inter-changeably.References sometimes relate either to a text about business excellence models ingeneral or the EFQM model specifically. The paper aims to discuss the pros and cons of BMEsand the EFQM model serves as the most widespread example. page4 2Application of business excellence models inthe organization In order to respond to the highly competitive external environment, enterprisesarecontinuously searchingfor effective new approaches to enhancing their man-agement capabilities such as total quality management, business excellencemodels, business process reengineering, enterprise resource planning, organi-zational change management, etc. Among these various approaches,total qual-ity management and business excellence modelshave been the most popular inthe past two decades(Dahlgaard et al.,2013, p. 519). The term “excellence”isusedin the contextof“qualitymanagement”witha distinctmeaning.Quality ismeetingthe customers requirements, and this is not restricted to the functionalcharacteristics of the product or service. Reliability is the ability of the product or service to continue to meet customer requirements over time. Organizations “de-light”the customer by consistently meeting customer requirements, and thenachieve a reputationfor“excellence”and customer loyalty(Oakland 2005, p.1055).The most widespread 3 BEM ishosted by theEuropeanFoundationfor Quality Managementwhich was founded in Brusselsin September 1988.Its mis-sion then was toexpeditethe process forEuropean industry gaining a globalcompetitive advantagethrough quality(Schnauber et al., 1999, p. 2/52-2/54).Itis a practicalframeworkthat indicates the position of business organizations onthepathto excellence, helps them to determine their shortcomings and encour-ages appropriate solutions(Uygur und Sümerli, 2013, p. 981).It distinguishes so- 3 In 2006 about30,000 European organizations were using the European excellence model(Dahlgaard et al., 2013, p. 519). Figure1: The EFQM Excellence model.(European Foundation for Quality Management, 2017) page5 called enablers (leadership, people, strategy, partnerships and processes/prod-ucts) and results (people, customer, societyandbusiness) achieved through theenablers. The results thencontribute to further learning, creativity and innovation(European Foundation for Quality Management,2017). 2.1Benefits and opportunities Recent research projectsfindingson the financial impacts ofimplementing BEMshave included:Investing in excellence as a core of business strategy pays;ob- jective evidence for this now exists in both North America and Europe;excellencestrategies contribute to business performance through increased sales,throughreduced costsand process efficiency.Award-winning 4 companiesfurthershoweda higher 5 mean increase of 18% in operating income, 40% in total assets and a4.4% further reduction in cost over sales, 5 years after the award(Dahlgaard etal. 2013, p. 520).The evidence is not limited to financial results indicating pastperformance.Furtherevidence isprovided bycustomer satisfaction and loyalty,employee motivation and competence,andmeasured excellence resultscon-cerning societalloyalty as well(Uygur und Sümerli, 2013, p. 981). Further studiesalso show that the greater the progress in the implementation of the model, thegreater thepositivedifferences in terms of staff satisfactioncomparedwith theless advancedorganizations(Matthies-Baraibar et al., 2014, p. 8).Therealsoappears to bea strong relationship between organizational commitment and busi-ness excellence.(Tutuncu und Kucukusta,2007, p. 1092). 2.2Barriers and shortcomings Although there arebenefitsinusing BMEs to enhance corporate managementcapacities,therearealso shortcomings.In what follows, these arecategorized 4 A key componentindevelopingbusiness excellence ispreparingand then applyingfor the an-nual quality award. In Europe, thisis calledthe “EFQM”,in USAthe “MBNQA”(MalcomBaldridge National Quality Award) Source: https://www.nist.gov/baldrige/baldrige-award (ac-cessed:28.12.2017). 5 The most recent research on the financial impacts of implementing TQM and BEM compared120 national, regional and European award-winning companies from the period 1990 to 2006 withcarefully selected comparison companies from the same industry and country as the award-win-ning company. The analysed companies were all publicly traded(Dahlgaard et al.,2013, p. 520).
