Achieving Business Excellence - Coursework Example

Achieving Business Excellence Name Institutional Affiliation Abstract This study explores the methods of achieving business excellence and developing an understanding of the relationship between strategy and business excellence. There is a perceived relation of the two variables where there is a believe they influence each other. In studying this relation, business excellence model forms part of the discussion where its characteristics and variations direct the understanding of the subject. The discussion focuses on defining the two concepts and providing their specific elements. There is a comprehensive discussion about their functions aimed at clarifying the existence of an interdependent relation. In particular, there is continuous mention and reference to organization management as an imperative contributor in meeting the subject of discussion. There is also a reflection on internal enablers distinguished from the external results where both function as fundamental components of business excellence. Throughout the discussion, there is significant supportive documentation agreeing with the interdependent nature of the two variables. Achieving Business Excellence Introduction The current trade and market patterns identify a continued escalation of competition. As the world adapts into globalization and changing market condition, it becomes difficult for entrepreneurs to maintain profits and the growth of their businesses. Therefore, as a response to the dynamic business environment, enterprises apply different strategies aimed at achieving business excellence (Dahlgaard, Chen, Jang, Banegas, & Dahlgaard-Park, 2013). Common strategies include the Total Quality Management (TQM), Business Process Re-engineering (BPR), Business Excellence Models (BEM), Organizational Change Management (OCM) and Enterprise Resource Planning (ERP) (Dahlgaard et al. 2013). Among these examples, the TQM and BEM are the most utilized by a majority of firms across diverse countries. In particular, BEM provides a basis for grading and comparing performances for competitive companies. Consequently, it makes part of the awarding criteria in categorizing companies based on their performances (Dahlgaard et al. 2013; Mohammad, Mann, Grigg, & Wagner, 2011). This essay focuses on BEM as a strategy in realizing Business Excellence (BE). It governs and directs the ways to achieve positive performance in the business. As such, it forms a powerful tool which informs the relationship and interdependent nature of the strategy and business excellence. The article also discusses the pathway in achieving business excellence. Strategy in Effecting Business Excellence In managing their enterprises, entrepreneurs work with a plan explaining what they want from the business, why and how they aim to attain it. Therefore, it is this plan or strategies that direct the mechanism of achieving business excellence. Based on Mohammad et al. (2011), BE defines the excellent performance of business practices, the accurate employment of strategies and meeting of the stakeholders results determined through BEM models. Moreover, it entails achieving the aim of a business along quality management practices (Mohammad et al. 2011). From the definition, it is evident that BE is a process facilitated by specific enablers one of which is the strategy. Here, strategy as an enabler covers what the organization plans to do in a quest to achieve a particular desired result (Mohammad et al. 2011). In the argument of Lu, Betts and Croom (2011), an organization’s success depends on the availability of a coherent framework. Important in establishing the framework is the identification of its specific component such that the internal and external factors of the business become well-balanced and managed (Lu et al. 2011). As such, one of the vital components in any business framework is the strategy and its fitness to the goal of the firm. According to Lu et al. (2011), strategic fit in BE explains the availability of measures that are distinct to that particular business. Moreover, the correctness of the strategy is a function of its components that informs the achievement or failure in meeting a BE position (Lu et al. 2011). Components in strategy include the vision, mission and value governing the objectives and operation behavior of the organization (Lu et al. 2011). The components function as identifiers of attributes upheld by the firm in becoming excellent. In particular, these features include the leadership, capabilities, alignment, and innovation (Lu et al. 2011). Imperative of aforementioned features include their ability to direct the conduct and performance of a firm and its personnel. In particular, they forms constitutive part of the organization operation structure dictating the path to excellence in performance. Lu et al. (2011) continues to explain the relevance of the strategic component in BE especially in integrating the consumer and producer for effective performance. Here, it is the values of a business that establishes and defines the culture in a firm. Consequently, the business culture explains on the external distinctiveness and internal capabilities of an enterprise towards its performance (Lu et al. 2011). At this point it is important to understand that BE not only entails the performance of a firm, but the accurate merging of the internal and external capabilities (Lu et al. 2011). Focusing on the external component, important is the availability of a performance model such as the BEM which measures and compares the outcome of an enterprise. Reflecting in the work of Peters and Austin about their excellence model, the consumer satisfaction forms a vital external performance measure (Lu et al. 2011). Comparatively, both innovation and leadership expound business internal capabilities. Here, the argument agrees with the thoughts of Mohammad et al. (2011) concerning the enabler and the result which discover the effect of strategy to BE. Mohammad et al. (2011) extends the understanding of strategy in influencing BE by including organizational performance improvement and management control as functions of BEM. Looking at control, there exist different facets of subject including human resource, mechanic, cybernetic, contingency and cultural. Although different paradigms, they create an interrelation of factors available in any organization. Therefore, they characterize business strategy as a holistic component and integrative managing the adequate combination of factors necessary in remaining excellent in performance (Mohammad et al. 2011). In a similar approach, organizational improvement techniques explain the methods employed by the management in producing a desired result (Mohammad et al. 2011). Here, imperative are these approaches as they signify a strategy, structured for the sole purpose of implementing a change in performance. Furthermore, Mohammad et al. (2011) includes that the presence of a strategic model such as the BEM enables the efficient alignment and management of multiple performance improvement mechanisms. Interestingly, the identification of areas needing improvement relies on the internal enablers of BE (Mohammad et al. 2011). In reference to Dahlgaard et al. (2013), the implementation of is not a guarantee for the successful achievement of BE. Here, the uncertainty in the strategy follows the numerous models available as well as the presence of limiting factors (Dahlgaard et al. 2013). Examining the barriers in BEM employment, particular examples include limited resources, negative perception of change, lack of leadership commitment, absence of staff involvement and low level of quality improvement knowledge (Dahlgaard et al. 2013). A poor understanding of the model makes an invisible barrier to the functioning of the strategy in fulfilling BE. Therefore, not only are there positive impacts of strategy in BE but also negative effects which limit an organization’s performance. Business Excellence in Effecting Strategy The trade patterns today necessitate the need for manager to employ effective management models. According to Westerveld (2003), there is also the challenge in firm to manage large and complex project engineered by the need to revolutionize business and transform them into multinational corporations. Reflecting on current literature providing a solution to the problem, Westerveld (2003) suggest on incorporating success criteria to the factors of success. The linking of both components generates a more effective model in mitigating the challenges and the achievement of positive performance. Here, the success criteria functions as the result areas or factors which according to Westerveld (2003) include the result the organization has already attained. Considering the results as the success criteria, traditional perspective determined success through the analysis of quality, time and budget plans (Westerveld, 2003). However, with the changes in the contemporary period, there are numerous competing criteria directed by the stakeholders’ assessment of performance. In particular, there is a need to understand that external factors such as the complexity of the organization, its size and quality standards of the company dictate its success criteria (Westerveld, 2003). Therefore, as a response in developing a more comprehensive model in identifying success criteria, Westerveld (2003) provides a clustering technique. Examining the mechanism and its operating strategy, it is evident that it projects possible successes and uses them to develop a strategy such as the BEM model. Critical success factors are yet another vital area that discusses the relevance of BE to strategy. Westerveld (2003) defines them as the organizational areas explaining how the firm aims at achieving a successful outcome. Usually, these factors establish an enterprise performance strategy, identifying particular steps the manager and employees need to follow as part of the goal, mission and vision. Moreover, the accurate identification of these factors follows particular criteria, including the ability to distinguish success factors and criteria and differentiate between success factors both within and outside the control of the management (Westerveld, 2003). Therefore, the process of managing success factors including the influence of the success criteria in managing the particular elements establishes a system where the results and projected future outcomes identify the how or the organization areas. Figure one below illustrates the relations of the two factors, especially how the results generate a strategic structure particular about developing strategic components of an organization. In the discussion of Business Excellence Tools (2017), BE describes a set of practices that govern an organization and influences the achievement of results. Important for BE, particularly in managing the aforementioned functions are the essential value and concepts (Business Excellence Tools, 2017). In a business environment, values direct behavior leading the cementation of a culture. Moreover, Business Excellence Tools (2017) explains that the BE practices continue to evolve directing the operation standards within the organization. As it stands, the directing of performance through a set of practices developed through value and assessed identifies with strategic planning. Furthermore, Business Excellence Tools (2017) explains that following the assessment of these practices and their outcomes, numerous strategic models emerge tailored to suit the needs of a particular enterprise (Business Excellence Tools, 2017). In a more elaborate perspective, BEM provides a framework whose application in an organization leads to a systematic and structured balance of thoughts and action (Business Excellence Tools, 2017). Consequently, the availability of the framework improves performance. Looking at the mechanisms of BE in improving performance it is vital to consider its abilities to focus on specific areas of an organization, especially those that directly relate to performance. An example includes leadership as one of the internal enablers whereby the BE governs the practice of excellent principles for effective organizational management (Business Excellence Tools, 2017). Here, the directing of leadership practices occurring along measuring of the possible success of such a change explains the dependency of strategy on BE. This mechanism is relevant in managing a change, whereby minimizing uncertainty is a priority. Moreover, the application of strategy requires a prior determination of its success potential before its actual implementation. BE functions as the foundation of the continued improvement in performance (Business Excellence Tools, 2017; Hardjono, & van Marrewijk, 2001). An example of its model managing this function is the European Business Excellence Model (EFQM model). In particular, the model leads to an improved organization culture, development of Corporate Social Responsibility (CSR) and enhances the use of best practice behavior (Business Excellence Tools, 2017; Hardjono, & van Marrewijk, 2001). Furthermore, its application in self-assessment facilitates the identification of strong and weak areas in management practices. As a result, it helps the management to apply effective strategies such as conducting discussions on finding solutions to weak areas (Business Excellence Tools, 2017). Therefore, BE assist in linking BEM and best practices to generate efficient strategies that solve specific challenges in the organization. The EFQM as a BE model consists of one result category with another significant number of enablers. Focusing on the result component, it provides information on the consumer and employer satisfaction as well as the impacts of the firm to its environment (Business Excellence Tools, 2017; Hardjono, & van Marrewijk, 2001). It is the result section of the model that allows the formulation of an enterprises’ performance measurement system (Business Excellence Tools, 2017). In the discussion of Hardjono and van Marrewijk (2001) it informs the elements that structure the CSR system. These fundamentals, including strategy and policy, leadership, resource and people management, financial outcomes, satisfaction of employees and customers, governing process and the impact of the company to the society. Here, by imperative is the understanding of CSR as a strategy employed by organizations to govern its relation with its stakeholders and improve its responsibility to the society. It entails managing economic growth, social equity and environmental sustainability (Hardjono & van Marrewijk 2001). Achieving Business Excellence The challenges and limitations in managing a BEM explain on the relevance of determining ways of achieving BE. To begin with, Dahlgaard et al. (2013) highlights the need for the organization to structure a simple performance assessment criterion. Furthermore, the organization should develop a channel of involving their employees in the regular assessment as a means to encourage their contribution and understanding of the relevance of the practice (Business Excellence Tools, 2017; Dahlgaard et al. 2013). In achieving this vision, the management needs to employ effective communication skills. Cooperation and teamwork are the ingredients for the successful attainment of a world-class position. The inclusion of these factors as imperatives of the course follows the need to ensure Total Employee Involvement (TEI) (Dahlgaard et al. 2013). More important is the necessity in changing the perspective in an organization concerning the view that the management and its expertise are solely responsible for managing BE. However, creating teamwork requires the establishment of a shared vision relative to the objectives and missions of the firm (Business Excellence Tools, 2017). Moreover, it is vital to enact support systems providing and acting as reference channels in the organization. Effective BE is that which provides a holistic perspective throughout its course. In the discussion by Dahlgaard et al. (2013), models such as the EFQM fail to provide this perspective at the operational level. Consequently, it fails to integrate both the existing and planned initiatives. From this discussion, BE is only attainable when there is integrative system that eliminates the possibility of duplicating plans (Dahlgaard et al. 2013). Business Excellence Tools (2017) affirms this characteristic by explaining on the need to separate the new version from the past. Central in achieving this step is the elimination of inconsistencies, especially between the intended and the actual practice (Dahlgaard et al. 2013). Here, a solution could involve the restructuring of the enterprise operations structures to align the best practices in all departments. Literature by Dahlgaard et al. (2013), identify fragmentation as a possible limitation in developing and implementing a BEM. In fragmentation, the primary idea is the availability of many subsets of a particular element. As such Dahlgaard et al. (2013) believes that these fragments over diversify the organization management creating a complex system. Imperative in the understanding is the knowledge that this fragmented organization model limits the integration and focus of the BEM interpreting to a strain in achieving BE. Therefore, employing a holistic framework of the course significantly enhances the potential of an enterprise in a world-class status. Nevertheless, there is a need to determine the BE maturity stage of the organization prior to implementing any BEM models (Mohammad et al. 2011). It is the maturity stage that dictates the suitable implementation model to use as well as the areas in need of these improvements. Conclusion In summary, business excellence in the contemporary society is on a changing pattern influenced by the dynamic nature of the trade markets and globalization. Through the discussion, BE defines the ability to effectively employ business practices, meet stakeholder satisfaction and the use efficient strategy. The availability of the BEM as strategies governing and assessing the performance and an enterprise explain the pathway of achieving BE. More important is the understanding of the effects, both positive and negative of employing strategy in attaining the world-class performance status. As seen through the discussion, not only is there a direct relation between strategy and BE but there exists an interdependency in their functioning. This is comprehensively covered in how BE effects strategy with the example of its ability to inform the elements in a CSR. Therefore, without strategy, there is no excellence in business and without excellence in business there is no strategy. References Business Excellence Tools. (2017). Business Excellence. Retrieved from http://www.businessexcellencetools.com/business-excellence/ Dahlgaard, J. J., Chen, C. K., Jang, J. Y., Banegas, L. A., & Dahlgaard-Park, S. M. (2013). Business excellence models: limitations, reflections and further development. Total Quality Management & Business Excellence, 24(5-6), 519-538. Hardjono, T. W., & van Marrewijk, M. (2001). The social dimensions of business excellence. Corporate Environmental Strategy, 8(3), 223-233. Lu, D., Betts, A., & Croom, S. (2011). Re-investigating business excellence: Values, measures and a framework. Total Quality Management & Business Excellence, 22(12), 1263-1276. Mohammad, M., Mann, R., Grigg, N., & Wagner, J. P. (2011). Business Excellence Model: An overarching framework for managing and aligning multiple organisational improvement initiatives. Total Quality Management & Business Excellence, 22(11), 1213-1236. Westerveld, E. (2003). The Project Excellence Model®: linking success criteria and critical success factors. International Journal of project management, 21(6), 411-418. Read More