More Related Content More from Flevy.com Best Practices (20) Business Excellence Frameworks1. Business Excellence
Frameworks
Diagrams and Templates of Business Excellence
Frameworks
This presentation is a collection of PowerPoint diagrams and
templates used to convey 100 different business excellence
frameworks comprising key strategy, marketing, finance,
operations, IT, organization, change and HR models.
© Operational Excellence Consulting. All rights reserved.
2. © Operational Excellence Consulting. All rights reserved. 4
Contents (2 of 5)
21. Capability Maturity Model Integration (CMMI)
22. Cause & Effect Diagram
23. COBIT 5
24. COPC-2000
25. Cost of Quality
26. Covey’s Seven Habits
27. Covey’s Time Management Matrix
28. Crosby’s Law of 10
29. Curry’s Pyramid
30. De Bono’s Six Thinking Hats
31. Deming Cycle
32. Drucker’s Management By Objectives
33. DuPont Analysis
34. EFQM Business Excellence Model
35. Eight Types of Waste
36. Emotional Competence Framework
37. Five Principles of Lean
38. Four Stages of Contribution Model
39. Gemba Framework
40. Greiner’s Growth Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
3. © Operational Excellence Consulting. All rights reserved. 7
Contents (5 of 5)
81. SHRM Elements for HR Success
82. Six Sigma Methodology
83. Strategic Business Planning Methodology
84. Strategic Dialog
85. SWOT Analysis
86. Talent Management Framework
87. Total Productive Maintenance (TPM)
88. Total Quality Management
89. TRADE Best Practice Benchmarking Model
90. Training Within Industry (TWI)
91. Treacy & Wiersema Value Disciplines
92. Tuckman’s Model of Team Development Stages
93. Ulrich’s Five Rules for Leadership
94. Ulrich’s HR Competency Model
95. Ulrich’s Matrix on the Four Roles of HR
96. Ulrich’s Stages of Employee Connection to the Organization
97. Value Chain Model
98. Value Stream Mapping
99. Value-based Management
100. Xerox Benchmarking Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
4. 3C’s Strategy Triangle (TEMPLATE)
Customer
Competitor
Corporation
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 10
Insert Header
Insert bumper – takeaway statement
Source: Kenichi Ohmae
5. Product
Price
Place
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 13
Insert Header
4 P’s of Marketing
Promotion
Source: Kotler, P. and Keller, K.L.
Do you actually produce
what your customers
want?
How much are your
customers willing to
pay?
Are your products
available in the right
quantities, in the right
place, at the right time?
How can you best
inform/educate groups
of customers about your
organization and its
products
Marketing
Mix
Insert bumper – takeaway statement
6. Considerations in developing the optimal marketing mix
Product Decisions Price Decisions Distribution (Place)
© Operational Excellence Consulting. All rights reserved. 16
4 P’s of Marketing
Source: Kotler, P. and Keller, K.L.
Decisions
Promotion Decisions
Brand name
Functionality styling
Quality
Safety
Packaging
Repairs and support
Warranty
Accessories and
services
Pricing strategy (skim
and penetration)
Suggested retail price
Volume discounts
and wholesale pricing
Cash and early
payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
Distribution channels
Market coverage
(inclusive, selective
or exclusive
distribution)
Specific channel
members
Inventory
management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
Promotional strategy
(push or pull)
Advertising
Personal selling and
sales force
Sales promotions
Public relations and
publicity
Marketing
Communications
budget
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
7. This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 19
5S Principles
Principles General Description
1S Sort Remove what is not needed and keep what is
needed
2S Set in Order Arrange essential items in order for easy
access
3S Shine Keep things clean and tidy; no trash or dirt in
the workplace
4S Standardize Establish standards and guidelines to maintain
an organized workplace
5S Sustain Make 5S a habit and teach others to adhere to
established standards
8. 4.
8D Problem
Solving
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
9. 5.
Activity-Based
Costing
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
10. There are five steps involved in performing a simple ABC analysis
DESCRIPTION
Define the cost objects, indirect activities and resources
used for the indirect activities
Determine the costs per indirect activity
Identify the cost drivers for each resource
Calculate the total indirect product costs for the cost
object type
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
Divide the total costs by quantity for indirect cost per
individual cost object
© Operational Excellence Consulting. All rights reserved. 28
ABC Analysis
SStteepp 11
SStteepp 22
SStteepp 33
SStteepp 44
SStteepp 55
Source: Kaplan Cooper
11. ADKAR Change Model (TEMPLATE)
• Support the change
• Participate and engage
• How to change
• Implement new skills and behaviors
• Implement the change
• Demonstrate performance
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 31
Insert Header
Insert bumper – takeaway statement
Source: Prosci
• Understand the need for change
• Understand nature of the change
• Sustain the change
• Build a culture and competence around
change
Awareness
Desire
Knowledge
Ability
Reinforcement
12. This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 34
Agile Methods
• XP – Extreme Programming
• FDD – Feature Driven Development
• Crystal
• Scrum
• DSDM – Dynamic System Development Method
• Adaptive Software Development
• Lean Software Development
13. 8.
AHRI Model of
Excellence
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
14. 9.
Ansoff’s Growth
Matrix
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
15. The Ansoff Growth Matrix identifies four generic competitive
strategies
DESCRIPTION
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 43
Ansoff’s Growth Matrix
MMaarrkkeett PPeenneettrraattiioonn
Sell more of the same products and services in existing
markets. This growth vector indicates growth through increase
of market share for the present product-markets.
MMaarrkkeett DDeevveellooppmmeenntt Sell more of the same products and services in new markets.
Product
Development
Sell new products and services into existing markets. This
growth vector means growth by developing new products to
replace or complement existing products.
DDiivveerrssiiffiiccaattiioonn Sell new products and services into new markets.
Source: Ansoff
16. Adapt
© Operational Excellence Consulting. All rights reserved. 46
Insert Header
APQC Benchmarking Methodology (TEMPLATE)
Insert bumper – takeaway statement
Source: American Productivity Quality Center
Plan
Analyze Collect
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
17. APQC Four-Phase Benchmarking Model
© Operational Excellence Consulting. All rights reserved. 49
PLAN
ADAPT
ANALYZE COLLECT
1. Compare your current performance data to
your partners' data
Sort and compile data
Make your performance data comparable (normalize)
Identify gaps
2. Identify operational best practices and
enablers
What are participants doing that you are not doing
How do they do it (enablers)
3. Formulate strategy to close the gaps
Assess adaptability of practices and enablers
Identify opportunities for improvement
4. Develop implementation plan
APQC Benchmarking Methodology
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
18. The ASTD Competency Model defines the skills and knowledge
required to become successful trainers
Management
ASTD Competency Model for TD
Knowledge
Management
Change
Coaching Training
Integrated
Talent
Management
Managing
Learning
Programs
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
TD Areas of Expertise
Business Skills Global Mindset Industry Knowledge
Interpersonal Skills Personal Skills Technology
Foundational Competencies
Source: The American Society for Training Development (ASTD)
Performance
Improvement
ASTD
Competencies
for the Training
Development
Profession
Instructional
Design
Delivery
Learning
Technologies
Evaluating
Learning
Impact
Literacy
© Operational Excellence Consulting. All rights reserved. 52
19. Australian Business Excellence Framework
Australian Business Excellence Framework
Leadership
People
Strategy
Planning
Results
Sustainable
Performance
This document is a partial preview. FuSll tdaokceuhmoeldnet rdsownload can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
Process
Management,
Improvement
Innovation
Customers
other
© Operational Excellence Consulting. All rights reserved. 55
20. The Balanced Scorecard focuses the entire organization on financial
and non-financial outcomes
FFIINNAANNCCIIAALL
BBUUSSIINNEESSSS PPRROOCCEESSSSEESS
To succeed financially, how
should we appear to our
shareholders?
Vision
and
Strategy
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
LLEEAARRNNIINNGG GGRROOWWTTHH
© Operational Excellence Consulting. All rights reserved. 58
The Balanced Scorecard
CCUUSSTTOOMMEERRSS
To achieve our vision, how will
we sustain our ability to change
and improve?
To achieve our vision, how
should we appear to our
customers?
To satisfy our shareholders and
customers, what business
processes must we excel at?
Source: Kaplan Norton
21. 14.
Baldrige
Performance
Excellence
Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
22. 15.
BCG Matrix
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
23. By defining a strategy for each business unit, the overall portfolio of
an organization can be maintained as a profitable mix
QUADRANT DESCRIPTION
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 67
SSttaarrss
Are products that enjoy a relatively high market share in a strongly growing
market. They are (potentially) profitable and may grow further. It is
therefore advisable to invest in these products.
CCaasshh CCoowwss
Are products that are extremely profitable, and no extra effort or investment
is needed to maintain the status quo. A product becomes a cash cow when
the growth of a product’s market decreases but the company’s market share
remains high and stable.
QQuueessttiioonn MMaarrkkss
Are products that have high market growth but small market share, and so
their growth rate is uncertain. Investments to generate further growth may
or may not yield big results in the future. Additional investigation into how
and where to invest is advised.
DDooggss
Should be dropped or divested when they are not profitable. If profitable,
do not invest in them, but make the best of their current value. This may
even mean selling the product’s operations and/or brand.
The BCG Matrix
Source: BCG
24. Beer Nohria E O Theories (TEMPLATE)
• The purpose of Theory E is the
creation of economic value, often
expressed as shareholder value.
• Its focus is on formal structure
and systems. It is driven from the
top by the extensive aid of
consultants and financial
incentives.
© Operational Excellence Consulting. All rights reserved. 70
Insert Header
• Change is planned and
Insert bumper – takeaway statement
Theory E
programmatic.
Source: Beer Nohria
Theory O
• The purpose of Theory O is the
development of an organization’s
human ability to implement strategy
and to learn about the
effectiveness of the changes made
from the actions action.
• Its focus is on the development of a
high-commitment culture. Its
means consist of high involvement,
where consultants and incentives
are relied on far less to drive
change.
• Change is emergent, rather than
planned and programmatic.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
25. Blue Ocean Strategy focuses attention on the creation of
uncontested marketplaces through value innovation
Red Ocean Thinking Blue Ocean Thinking
Blue Ocean Strategy
Industry Compete in existing market space Create uncontested market space
Strategy Best the competition Make competition irrelevant
Market Exploit existing demand Create and capture new demand
Resources Make the value-cost trade-off Break the value-cost trade-off
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 73
Organization
Choose between differentiation or
cost
Simultaneous pursuit of differentiation
and cost
Offerings
Maximize value within industry
boundaries
Offer total solution that transcends the
industry
Source: C. Kim, R. Mauborgne
26. Value
Innovation
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 76
Insert Header
Blue Ocean Strategy – The Four Actions Framework (TEMPLATE)
Eliminate
Reduce
Raise
Create
COST
VALUE
Reduce
cost
Increase
customer
value
Source: C. Kim, R. Mauborgne
Insert bumper – takeaway statement
27. 18.
Branding
Pentagram
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
28. The five points of the branding pentagram
DESCRIPTION
The principles of branding consists of brand mission, desired
brand perception and brand architecture.
The positioning of the brand can be chosen based on
segmentation, target groups and how the brand distinguish itself
compared to the competitors.
Consistency can be created by creating consistency in the way
the brand is carried by the products and services of the
organization, and how employees speak of the brand itself.
A person should be appointed who will have direct responsibility
for branding. Branding should be embedded by anchoring it in
the organization’s culture and employees’ behaviors.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
Formulation of SMART targets of brand policy for short and long
term. Measurements must be developed and results of the
degrees of realization be evaluated.
© Operational Excellence Consulting. All rights reserved. 82
The Branding Pentagram
PPrriinncciipplleess ooff bbrraannddiinngg
Positioning
Consistency in brand
carriers
Embedding the
branding
Planning and control
cycle
Source: M. Baker and S. Hart
29. Bridges’ Transition Model (TEMPLATE)
© Operational Excellence Consulting. All rights reserved. 85
Insert Header
Insert bumper – takeaway statement
Source: William Bridges
Time
Importance
Ending,
Losing,
Letting Go
The
Neutral
Zone
The New
Beginning
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
30. There are four important rules to bear in mind with any BPR project
DESCRIPTION
Business Process Redesign Model
RRuullee 11 Determine strategy before redesigning.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 88
RRuullee 22
Redesign each primary process (i.e. a set of transformations of
input elements into products with specific properties) first and
subsequently optimize the secondary processes (i.e. processes
that support the proper working of the primary processes).
RRuullee 33 Optimize the use of information technology.
RRuullee 44
Organizational structure and governance models must be
compatible with the primary process.
Source: Hammer Campy, 1993
31. Capability Maturity Model Integration (CMMI) Constellations
CMMI-DEV
organizations and to
external customers
Provides guidance
for managing,
measuring, and
monitoring
Provides guidance
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-development excellence-process
frameworks-872
CMMI-SVC
for delivering
services within
CMMI-ACQ
Provides guidance
to enable informed
and decisive
acquisition
leadership
© Operational Excellence Consulting. All rights reserved. 91
Source: Software Engineering Institute
32. Maturity Level Process Characteristics Behaviors
Focus is on continuous
quantitative improvement
© Operational Excellence Consulting. All rights reserved. 94
CMMI Maturity Levels
Optimizing
Source: Software Engineering Institute
Focus on “fire prevention”; improvement
anticipated and desired, and impacts
assessed.
Quantitatively
Managed
Process is measured
and controlled
Greater sense of teamwork and inter-dependencies.
Defined
Process is characterized
for the organization and
is proactive
Reliance on defined process. People
understand, support and follow the process.
Managed
Process is characterized
for projects and is often
reactive
Over-reliance on experience of good people –
when they go, the process goes.
Initial
Process is unpredictable,
poorly controlled, and
reactive
Focus on “fire fighting”; Effectiveness low,
frustration high.
CMMI Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
33. Cause Effect Diagram (Manufacturing) (TEMPLATE)
Manpower
Methods
Machines
(or Equipment)
Measurement
© Operational Excellence Consulting. All rights reserved. 97
Insert Header
Source: Kaoru Ishikawa
Insert bumper – takeaway statement
Output
Materials
(or Information)
Environment
Causes Effect
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
34. 23.
COBIT 5
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
35. The COBIT 5 framework is based on five principles of enterprise IT
governance
2. Covering the
Enterprise
End-to-end
© Operational Excellence Consulting. All rights reserved. 103
Source: ISACA
5. Separating
Governance
From
Management
4. Enabling a
Holistic
Approach
3. Applying a
Single
Integrated
Framework
1. Meeting
Stakeholder
Needs
COBIT 5
Principles
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
36. COBIT 5 framework describes seven categories of enablers that help
foster the achievement of the enterprise’s objectives and deliver
value
4. Culture Ethics
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 106
Source: ISACA
22.. PPrroocceesssseess
7. People, Skills
Competencies
6. Services,
Infrastructure
Applications
55.. IInnffoorrmmaattiioonn
11. PPrriinncciipplleess,, PPoolliicciieess FFrraammeewwoorrkkss
Behavior
3. Organizational
Structure
Resources
37. 24.
COPC-2000
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
38. COPC-2000 CSP Standard (Rel. 5.2) is a collection of performance management
systems for customer-centric service operations for customer service providers
Enablers
2.0 Processes
4.0 Performance
3.0 People
© Operational Excellence Consulting. All rights reserved. 112
1.0 Leadership
Planning
1.1 Statement of Direction
1.2 Business Planning
1.3 Target Setting
1.4 Reviewing Process
Performance
1.5 COPC CSP Standard Review
Source: COPC Inc.
2.1 Managing Change
2.2 Process, Procedures
Methodologies
2.3 Corrective Action Continuous
Improvement
2.4 Transaction Monitoring
2.5 Forecasting, Staffing
Scheduling
2.6 Compliance
2.7 Technology
2.8 Vendor Key Supplier
Performance Management
2.9 Business Continuity
2.10 Reporting Data Integrity
2.11 Capturing and Analyzing End-user
Feedback
4.1 End-user Satisfaction
Dissatisfaction
4.2 Client Satisfaction
Dissatisfaction
4.3 Service Performance
4.4 Quality Performance
4.5 Sales Performance
4.6 Efficiency Cost Performance
4.7 KSP Performance
4.8 Achieving Results
3.1 Defining Jobs
3.2 Recruiting Hiring
3.3 Training Development
3.4 Verifying Skills Knowledge
3.5 Staff Performance Management
3.6 Managing Staff Feedback
3.7 Staff Attrition Absenteeism
Goal
Driver
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
39. Customer
Complaints
Overtime
Billing Errors
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 115
Cost of quality iceberg
Rework
Defects
Re-testing
Reviews
System Downtime
Liquidated Damages
Cost of Quality Iceberg
Product Failure in the Field Rush Delivery Costs
Retraining Late Charges Customer Dissatisfaction
Turf Battles Low Morale Excess Inventory
Unwanted Turnover Idle time Absenteeism Confusion
Visible
Less
Visible
Miscommunications Grievances Poor Teamwork
40. Costs of failure can be eliminated to reduce total COQ
- Retest
- Yield loss
- Downtime
- Scrap
© Operational Excellence Consulting. All rights reserved. 118
External failure
Source: J. M. Juran
Cost of Quality
Internal failure
costs
Prevention
costs
costs
Appraisal
costs
- Complaint investigation
and adjustment
- Return, replace or allowances
- Warranty expenses
- Liability
- Loss of goodwill
- Disposition
- Inventory safety stock
- Rework
- Incoming material inspection
- In-process inspection and testing
- Maintaining testing equipment
- Evaluation of stock
- Quality planning
- Production design and review
- Process design and review
- Job design and training
- Process control
- Data collection and analysis
- Quality improvement programs
Costs
of
Non-Conformance
Costs
of
This document is a partial preview. Full document download can be found on Flevy: Conformance
http://flevy.com/browse/document/business-excellence-frameworks-872
41. Covey’s Seven Habits is a powerful model for personal change and
leading change
Seek First to Understand,
PUBLIC
VICTORY
Think
Win-Win
4
PRIVATE
VICTORY
© Operational Excellence Consulting. All rights reserved. 121
Covey’s 7 Habits Model
Source: Stephen Covey
Interdependence
Independence
Dependence
1
Be
Proactive
2
Begin with
The End in Mind
3
Put First
Things First
Then to Be
Understood
5
Synergize
6
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
42. Covey’s time management grid is an effective method of organizing
your priorities
II
Focus
• Preparation/Planning
• Prevention
• Relationship-building
• Exercise
IV
Avoid
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
• Trivia, busy work
• Irrelevant calls, emails
• Time wasters
• Escape activities
III
Avoid
Covey’s Time Management Grid
• Interruptions, some calls
• Some mail and reports
• Some meetings
• Many “pressing” matters
© Operational Excellence Consulting. All rights reserved. 124
Source: Stephen Covey
Urgent Not Urgent
Not Important Important
I
Manage
• Crisis
• Pressing problems
• Deadline-driven projects
• Last-minute preparations
Quadrant of Quality
Personal Leadership
Quadrant of Necessity
Quadrant of Deception Quadrant of Waste
43. Crosby’s Law of 10 – The system for quality is prevention
© Operational Excellence Consulting. All rights reserved. 127
Crosby’s Law of 10
Source: Philip Crosby
Minimal defects due to prevention-based
activities
Defects found within the company
and corrected internally
Customer finds defects and
makes complaints
1
10
100 This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
44. Curry’s Pyramid of customer relationship management forces an
organization to segment customers in terms of revenue generation
© Operational Excellence Consulting. All rights reserved. 130
Curry’s Pyramid
Source: J. Curry A. Curry, 2000
A
(top)
B
(big)
C
(medium)
D
(small)
Inactive customers
Prospects
Suspects
Top 1% of customers
Next 4% of customers
Next 15% of customers
Next 80% of customers
Active versus inactive
(need timeframe)
Top versus small
(need measurement)
New versus existing
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
45. De Bono’s thinking hats represents six ways of thinking about
strategies and helps us to see potential opportunities
The Red Hat - Feelings
Red hat thinking focuses on
feelings, hunches, gut instinct
and intuition.
The Green Hat - Creativity
Green hat thinking focuses on
creativity: possibilities, alternatives,
solutions, new ideas.
© Operational Excellence Consulting. All rights reserved. 133
De Bono’s Six Thinking Hats
Source: Edward de Bono
The White Hat - Facts
White hat thinking focuses on
data, facts, information known
or needed.
The Yellow Hat -
Benefits
Yellow hat thinking focuses on
values and benefits. Why
something may work.
The Black Hat - Cautions
Black hat thinking focuses on
difficulties, potential problems.
Why something may not work.
The Blue Hat - Process
Blue hat thinking focuses on
managing the thinking process,
focus, next steps, action plans.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
46. 31.
Deming Cycle
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
47. 32.
Drucker’s
Management By
Objectives
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
48. 33.
DuPont Analysis
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
49. DuPont Analysis: Return on Equity (ROE) is affected by Operating
Efficiency, Asset Use Efficiency and Financial Leverage
DuPont analysis tells us that ROE is affected by three factors:
Operating efficiency, which is measured by profit margin
Asset use efficiency, which is measured by total asset turnover
Financial leverage, which is measured by the equity multiplier
© Operational Excellence Consulting. All rights reserved. 145
ROE =
Profit / Equity
Profit margin =
Profit / Sales
Asset turnover =
Sales / Assets
Equity multiplier =
Assets / Equity
X X
Operational efficiency Capital efficiency
=
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
50. The EFQM Excellence Model is a framework for helping organizations
to become more competitive
EFQM Business Excellence Model (TEMPLATE)
Enablers Results
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 148
Leadership
People
Strategy
Partnerships
Resources
Key
Results
Processes,
Products
Services
People
Results
Customer
Results
Society
Results
Learning, Creativity Innovation
51. Eight types of waste exist in our processes which can be eliminated
to increase customer value
Over-production
Producing more than what
the customer needs
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving from one
place to another
© Operational Excellence Consulting. All rights reserved. 151
Over-processing
Adding excess value
when the customer does
Defects
not require it
Reprocessing, or
correcting work
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or
information
Waste
Eight Types of Waste
Source: Adapted from Taiichi Ohno
52. 36.
Emotional
Competence
Framework
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
53. The Emotional Competence Framework (TEMPLATE)
Self-Awareness
• Emotional
awareness
• Accurate self-assessment
• Self-confidence
Motivation
• Achievement drive
• Commitment
• Initiative
• optimism
Self-Regulation
• Self-control
• Trustworthiness
• Conscientiousness
• Adaptability
• innovation
Personal
Competence
Social Skills
• Influence
• Conflict management
• Change catalyst
• Collaboration and cooperation
• Communication
• Leadership
• Building bonds
• Team capabilities
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 157
Insert Header
Insert bumper – takeaway statement
Empathy
• Understanding
others
• Developing others
• Service orientation
• Leveraging diversity
• Political awareness
SSoouurrccee:: Adapted from the works of Daniel Goleman, Emotional Intelligence and Working with Emotional Intelligence
54. Five Lean Principles (TEMPLATE)
© Operational Excellence Consulting. All rights reserved. 160
Insert Header
Insert bumper – takeaway statement
Source: James J. Womack and Daniel T. Jones
1. Identify
Value
2. Map the
Value
Stream
3. Create
Flow
4.
Establish
Pull
5. Seek
Perfection
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
55. The Four Stages of Contribution Model defines the framework for
transforming inclusive development into action
The Four Stages of Contribution Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 163
Source: Novations Group
Key Transitions (Novations)
Stage 4.
Contribute
Strategically
Stage 3.
Contribute
through
Others
Stage 3.
Contribute
Independently
Stage 1.
Contribute
Dependently
Impact
56. The Four Stages of Contribution Model (TEMPLATE)
© Operational Excellence Consulting. All rights reserved. 166
Insert Header
Insert bumper – takeaway statement
SSoouurrccee:: Novations Group
Contributing
Independently
Contributing Dependently
Contributing Strategically
Contributing Through
Others
Competence Growth
• Willingly accepts
supervision
• Demonstrates competence
on a portion of a larger
project
• Performs effectively on
detailed and routine tasks
• Shows “directed” creativity
and initiative
• Performs well under time
and budget pressure
• Learns how “we” do things
• Assumes significant
responsibility
• Relies less on supervision;
works independently and
produces results
• Builds expertise
• Develops credibility and a
reputation
• Builds a strong collegial
network
• Develops broader business
perspective - help others
understand in the broader
business context and needs
• Contributes to the
performance of others as a
manager, mentor, or idea
leader
• Represents the work group
on important issues
• Builds a strong internal and
external network
• Provides strategic direction
• Builds organizational
capability through work
system and process
improvement
• Exercise power for the
benefit of the organization
• Sponsors and prepares
future leaders
• Represents the organization
to key external groups on
critical strategic issues
Stage 1
Stage 4
Stage 3
Stage 2 This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
57. 39.
Gemba
Framework
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
58. 40.
Greiner’s Growth
Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
59. 41.
Harmon’s
Process-Strategy
Matrix for
Outsourcing
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
60. 42.
Harvard Model of
Strategic HRM
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
61. 43.
Heinrich’s Law
on Safety
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
62. 44.
High-Impact
Learning
Organization
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
63. 45.
Hofstede’s
Cultural
Dimensions
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
64. Hofstede’s Dimensions of Culture
Hofstede’s Cultural Dimensions
Power Distance Index (PDI)
Power Distance Index (PDI) is the extent to which the less powerful members of organizations and
institutions accept and expect power to be distributed unequally among individuals. If an Austrian and
a Malaysian marketing manager, working on the same hierarchical level within an organization are
compared, the difference in PDI becomes visible. The Malaysian manager (high PDI) has hardly any
responsibility or power compared to the Austrian (low PDI). In a Malaysian organization, power is
much more centralized.
Individualism (and collectivism, on the other side of the continuum), describes the relationship
between the individual and the collective that prevails in a given nation. Individualism pertains to
societies in which the ties between individuals are loose; everyone is expected to look after
themselves and their immediate family. Collectivism pertains to those in which people are integrated
into strong, cohesive in-groups. Those in-groups continue to protect these people throughout their
lifetime in exchange for unquestioning loyalty. US companies, for instance, people are more self-interested
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 190
Individualism (INV)
Source: G. Hofstede
and less interested in the well-being of the whole team compared to Asian companies.
65. 46.
Hoshin Kanri
Strategy
Deployment
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
66. 47.
House of Gemba
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
67. 48.
IMPA HR
Competency
Model
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
68. 49.
ISO 9001 Quality
Management
System
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
69. 50.
ISO/IEC 15504
(SPICE)
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved.
70. The purpose of ISO/IEC 15504 is capability determination in the
context of customers and suppliers, and a continuous process
improvement
Level 5 – Optimizing
• Process Innovation
• Process Optimization
Level 4 – Predictable
• Measurement
• Process Control
Level 3 – Established
• Process Definition
• Process Deployment
Level 2 – Managed
• Performance Management
• Work Product Management
Predictable
The process is executed
consistently within defined
limits.
Managed
The process is managed and
results are specified, controlled
and maintained.
Performed
The process is performed and
achieves its purpose.
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/business-excellence-frameworks-872
© Operational Excellence Consulting. All rights reserved. 208
Level 1 – Performed
• Process Performance
LLeevveell 00 –– IInnccoommpplleettee
Optimizing
The process is continuously
improved to meet current and
projected business goals.
Incomplete
The process is not
implemented or fails to achieve
its purposes.
Established
A standard process is defined
and used throughout the
organization.
Source: ISO/IEC
71. Security
Policy
Information
Security
This document is a partial preview. Full document download can be found on Flevy:
Communications
http://flevy.com/browse/document/business-excellence-frameworks-872
Operation
Management
© Operational Excellence Consulting. All rights reserved. 211
Insert Header
ISO/IEC 27001 (TEMPLATE)
Insert bumper – takeaway statement
72. 1
Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
• Billing
billing@flevy.com