European Foundation for Quality Management - Dissertation Example

Table of contents Abbreviations-------------------------------------------------------------2 Executive summary------------------------------------------------------2 Assumptions--------------------------------------------------------------2 Firm’s Vision, Mission, Objectives and Current Strategy---------3 Current strategy----------------------------------------------------------3 SWOT analysis----------------------------------------------------------4 Porter’s five forces model----------------------------------------------7 Balanced Score Card----------------------------------------------------8 Quality Management plan ( EFQM model )------------------------11 Governance plan for the firm------------------------------------------17 Barriers to global strategy----------------------------------------------18 References---------------------------------------------------------------20 Abbreviations AHRC- Arts and Humanities Research Council HEI-Higher Education Institutions RDA- Regional Development Agencies SME-Small to Medium Enterprises SWOT-Strengths, weaknesses, opportunities and threats Executive Summary The purpose of this report is to attempt to analyse in depth the operations of The Lambert Committee in the given case study. The report is comprised by a detailed analysis of the organisation’s mission, vision, objectives as well as the current strategy followed by the organisation. The report utilises different analysis tools which include: SWOT Analysis as well as Porter’s Five Forces model which is used to critically evaluate the current situation facing the firm. The balanced score card (BSC) is employed in the report and quality management plan is comprehensively covered using the EFQM model. The report further discusses issues of governance. The report also discusses the barriers that are often faced by firms in their global strategy where examples are given from experience gained from workplace. The main findings show that the approach taken by the firm is good given that it attempts to include all the stakeholders in the exchange of knowledge between universities and businesses. Through inclusivity, there are likely chances of mutual understanding among the stakeholders involved. The report also noted that this strategy used by the committee is good and can enable it to achieve its goals and objectives. Assumptions The report is based on the assumption that The Lambert Committee is seen as an independent entity which operates like a firm and is comprised of employees who co-ordinate the efforts to link business and universities. It is also assumed that this is not for profit business. Firm’s Vision, Mission, Objectives and Current Strategy Established in 2003 by the UK government, the vision of The Lambert Committee is to improve the links from academia to the wider society and economy through business university collaboration. Mission The mission is: “To provide a platform where business community and universities can collaborate in a bid to bridge the knowledge gap that may exist.” The goals and objectives are: This group seeks to bring together the supply and demand side of this relationship to foster stronger links and new activities. To encourage universities to develop links with businesses in the creative and cultural industries Facilitate creation of a number of ‘creative clusters’ bringing together local or regional HEIs with business for the generation of new ideas, products and processes. Act as catalyst for new ideas and a facilitator of knowledge transfer. To improve the links out from academia to the wider society and economy. Current strategy A close analyses of the given case study shows that the firm is strategy focused given the way it approaches its goals. It seeks to foster a strong relationship between universities and businesses in the creative industry. The other viable strategy employed by the firm has been the creation of a number of ‘creative clusters’ bringing together local or regional HEIs with business for the generation of new ideas, products and processes. Working with bodies such as AHRC as well as RDAs is strategic in that it seeks to find ways to improve the links out from academia to the wider society and economy. This strategy is based on the notion that knowledge transfer is not a process, but an interaction based on access to people, information, data and infrastructure. Knowledge transfer must not be a linear process. The firm seeks to consolidate its position through collaborating with the other external players in a bid to bridge the knowledge gap between businesses and universities. The committee will be responsible for coordinating internal activities that are meant to ensure that there is knowledge transfer between the business and universities. On the other hand, the external strategy will involve other bodies such as the AHRC to provide an environment that enables the ideas and creativity of the academic community to be unlocked and developed. These bodies will help bring together the targeted business community closer to the universities. SWOT Analysis A SWOT analysis defines the relationship between the internal and external environmental factors in the appraisals in strategic analysis (Robinson 1997). Basically, SWOT stands for strengths, weaknesses which represent the internal environment of the firm while opportunities and threats are external environmental factors. It is primarily concerned with analysing the key factors of the environment and the fundamental internal strengths and weaknesses of the organisation which will help dictate the strategies appropriate to the firm. This must be based on a realistic appraisal of the organisation’s past and present performance. The organisation’s strategy must take into account its resources and competitiveness. Therefore, the objective of this analysis is to use the strategic pointers in order to use the existing business strengths to exploit the opportunities, create new opportunities, to counteract threats and repair the weaknesses (Robinson 1997). By virtue of using the same technique to assess the competitors, the organisation can capitalise upon those competitors’ weaknesses and avoid going head on against their strengths. This analysis is going to be used to analyse the environment for The Lambert Committee. Strengths Ability to appeal to the interests of different stakeholders The committee is able to act as a catalyst for knowledge transfer among different stakeholders It is made up of professional people with the required knowledge and expertise to link businesses and the academia. A large number of people are trading their knowledge, expertise and experience through non-conventional employment means. Made up of bodies such as AHRC and RDA Weaknesses The links are mainly in the creative industry are small SMEs In some instances, the linear transfer of knowledge can be one sided May be challenging to coordinate all the stakeholders. Strengths The committee is able to appeal to the interests of different stakeholders who make up the business community. This facilitates a situation where knowledge transfer is made relatively easier among the stakeholders involved. The committee itself can act as a catalyst where it will play a role in influencing the people to take part in its initiative which helps expand the knowledge base. This is also made up of professional people who have the knowledge and ideas about what needs to be done. Working with the other bodies is advantageous in that it is the role of these bodies such as the AHRC to provide an environment that enables the ideas and creativity of the academic community to be unlocked and developed. Working with analogous bodies in other sectors, such as the RDAs, the aspiration is to find ways to improve the links out from academia to the wider society and economy. Weaknesses The main notable weaknesses include the following: it can be noted that the links that are mainly in the creative industry are small SMEs. The problem may be that knowledge can be transferred at a small scale and the committee may fail to involve the ideas coming from large enterprises. In some instances, the linear transfer of knowledge can be one sided which is a weaknesses. This would defy the logic and purpose of the firm which is intended to facilitate the free exchange of knowledge and ideas between the academia and business community. Another weakness is that it may be challenging to coordinate all the stakeholders involved in this initiative. Opportunities The main opportunity available is that the idea of knowledge transfer is likely to appeal to a large number of stakeholders. Can immensely contribute in the creation of knowledge which is advantageous to both academia and business community There are likely chances of creating a bond between universities and business Threats In some instances, stakeholders may not be at liberty to be part of the initiative. Others may not be at liberty to share their views. Some people may have their own agendas which may dampen an atmosphere of free flow of knowledge creation and sharing. Larger corporations may not want to be part of the initiative. Opportunities The main opportunity available is that the idea of knowledge transfer is likely to appeal to a large number of stakeholders which is likely to positively change the way businesses operate. This can also immensely contribute in the creation of knowledge which is advantageous to both academia and business community. Basically, knowledge is the back bone of every successful organisation since it helps create ideas that are useful to the organisation as a whole. The other opportunity is that there are likely chances of creating a strong bond between the universities as well as the business community in exchanging information that can positively contribute towards the growth of the business landscape. Threats In some instances, stakeholders may not be at liberty to be part of the initiative. This may hamper the efforts to involve all the stakeholders in the creation of knowledge among the academia and business community. Others may not be at liberty to share their views. Some people may have their own agendas which may dampen an atmosphere of free flow of knowledge creation and sharing. These would be bent on asserting their own views and voices only which defeats the idea of mutual understanding between universities and the business community. Larger corporations may not want to be part of the initiative. Porter’s Five forces Model According to an online article, ‘Five competitive forces -Porter,’ the five forces model of Porter is, “an outside in business strategy tool that is used to make an analysis of how attractive an industry is.” This is often regarded as a reliable business tool in most cases (McCarthy J.E & Perreault W. D. 1996). It has been assumed that The Lambert Committee is not for profit business but the five forces model below would be used to analyse the environment in which it operates. Fig 1. Porter’s Five Forces Model Entry of competitors In this case, the entrance of other bodies such as the Regional Development Agencies can overtake the operations of The Lambert Committee. In business wise, no one company should enjoy monopoly in the market. However, this is not meant for generation of money but generation of knowledge through involvement of all stakeholders in business and higher learning institutions. Threat of substitute This depends on the probability of a substitute overtaking the product already in the market in terms of cost. There are little chances of substitutes overtaking the efforts of the committee given that the other bodies involved report to the organisation. Since this is not for profit organisation, there is no serious threat of competition. Bargaining Powers Of Buyers This depends on the interests and capacities of consumers on certain products. In this case focus is the company in question’s ability to capture the market. Through concerted efforts to link the university and the businesses, targeted people are set to benefit. Bargaining powers of suppliers Depends on how strong the sellers are. In this case, focus is on service providers. There is no tangible product to be supplied but only coordinated efforts to link the academic community and the business community. Rivalry among the existing players Does competition exist? Which other organisation poses a threat to The Lambert Committee. In this case, there is no direct competition since working with bodies such as AHRC as well as RDAs is strategic in that it seeks to find ways to improve the links out from academia to the wider society and economy. Source http://www.12manage.com/methods_porter_five_forces.html The table above shows the five competitive factors that are likely to affect a business and will be used in this report to illustrate how the above mentioned companies are affected by these competitive forces. Balanced Score Card Balanced Scorecard (BSC) is a methodology used to describe the strategy that is employed by the organisation as well as measure its performance according to four perspectives as shown below: Financial Customer Internal business processes Learning and growth The following BSC defined below includes different aspects that would have to be considered if asked to develop one in the initiation phase of the project the Lambert Committee enters the business environment. The following aspects are very important during BSC implementation process: BSC Model Item Answer BSC Goals To define the objectives of the committee which are related to knowledge transfer between businesses and universities. Project team The co-ordinator is the leader and other members within the committee. Issues Involvement of all interested stakeholders Hardware Necessary recording equipment to be used for outreach programmes. Who produces the model? The co-ordinator and four other members of the committee. Pilot program Should be implemented in all stakeholder organisations within the first six months of inception. Actions after implementation -Measure values -Analyse results -report BSC results -Refine the BSC Model. As noted in the assumptions, this is not for profit business. It is mainly concerned with facilitating the collaboration of universities and business community in exchange of knowledge and ideas. Perspective Objective KPI Target Review End Responsibility Project Cost Financial Committee members’ salary to be provided by the sponsors. UK Gvt. Adequate funding Reach many business organisations End of every four months End of year Coordinator -collect all necessary information -review operations -report to the sponsors N/A Suggest annual expenses Explain all expense Budgeted expenses End of 3 mnths End of year Project coordinator Perspective Objective KPI Target Review End period Responsibility Project cost Customer Increase awareness of targeted businesses Number of targeted people All businesses Every three months End of every year HR manager Prepare plan -Conduct surveys -prepare report -get customer feed back Increase customer awareness Number of participants All businesses After 3 mnths End of yr HR Manager Perspective Objective KPI Target Review End Responsibility Project cost Internal business process Having the required resources Existence of resources Members of business 3 monts Year end HR manager or coordinator Arrange meetings -evaluate solutions -create test papers -arrange interviews Society participation Number of beneficiaries At least one year period 3 mnths Year end Coordinator Perspective Objective KPI Target Review End Responsibility Project cost Learning and growth Train committee members Number of members getting training Training to be done in 2 wks After 2 weeks End of year All senior members Define procedure-track member records -keep log of all information -define training items -report to management when training ends -interview the trainees Member participation Nature of action taken Training to be done in 2 wks End of 2 wks Year end All senior members Quality Management Plan Quality cost is not considered directly or indirectly in the case study since this is not for profit organisation. Quality is rather focused on: Internal employees: highly qualified partners can add value. Service: all stakeholders are involved in a cordial fashion. Processes require better management method and The Lambert Committee begin by documenting important information where time allocation and resources should be compatible with the goals of the organisation. Periodic processes reviews can provide better control. The Deming model below is another way that can be used to monitor and control processes: In order for the project to be successful, the four mentioned steps are very important with regards to checking and monitoring progress. Against this background, it can be noted that a well known framework in quality management is EFQM. It includes 5 enablers and 4 results. If the enablers are positively done, then the organization will achieve great results. Quality management plan (EFQM Model) Enablers Results (source: www.bqf.org.uk/ex_framework.htm.) The European Foundation for Quality Management (EFQM) Excellence Model, is a self-assessment framework that is used to measure the strengths as well as areas that need improvement in an organisation. It is mainly made up of nine big ideas as shown in the diagram above. These nine ideas are divided into enablers and results. The enablers are mainly concerned with the way the organisation conducts itself as well as managing its resources as well as the staff. Enablers 1. Leadership is concerned with how the leaders conduct themselves in an organisation towards the attainment of its goals and objectives through using other people. The leaders of the committee should be on top of the situation and their leadership style should be democratic participatory where all the stakeholders have a chance to participate. 2. People-these include the employees or members of the committee. These decide on the approach to take in this initiative. They require training to be able to approach the members of the business. 3. Policy and strategy- indicates the firms approach to its operations with regards to goal attainment. The goal of the committee is to bring the business community and the members of the academic sector together. 4. Partnerships and resources- these include people who are partners as well as the resources required in the organisation. The other bodies such as AHRC as well as RDAs are the partners involved in finding ways to improve the links out from academia to the wider society and economy. 5. Processes – the way efforts are made to make use of the available resources to produce something. The resources involved are mainly human since there is no manufacturing taking place in the committee. Results 6. People results- these are concerned with measuring the performance of the workers in an organisation. The efforts of the committee members are measured through increased participation of the members of the business. 7. Customer results- these are concerned with the interests of the customers whether they are satisfied with the products offered. If the members of the business community are happy to participate, then the targeted people are satisfied. 8. Society results- these focus on the society at large to see if they are not negatively impacted by the activities of the organisation. Members of the society at large are expected to benefit from the programme. 9. Key performance results- these focus on the overall performance of the whole organisation towards the achievement of its set goals. The committee is expected to positively change the behaviour of all the targeted members of the business community. Governance plan for the firm Basically, the concept of governance is based on the framework upon which to control people, processes and achieve required results in an organisation. In The Lambert Committee, I thing governance exists since there are structure in place that are meant to appeal to the interests of all the stakeholders involved. The principles of good governance are based on the following: Partners are involved in decision making It is agreed that the firm will follow a certain direction. Performance measurement which is based on the notion that the firm must respond to feedback from the stakeholders. Accountability- all partners should be responsible for all the decisions taken. Fairness- all the partners have equal opportunities. Barriers firms face during global strategy execution Employee performance and management In most cases, firms often fail to execute their global strategy when they cannot carefully manage their performance as well as their projects. Project members are expected to co-ordinate their efforts in one direction with the aim of achieving the set goals and objectives. There is need to closely monitor progress within an organisation. Lack of leadership styles and communication: Communication forms the back bone of every organisation. On a global level, it has to be noted that there are different people from different cultural backgrounds working in the same organisation. Their needs and values ought to be taken into consideration so that they are motivated and they also have a sense of belonging to that particular organisation. Internal business processes: Businesses often fail to execute their global strategy when they fail to involve the interests of the stakeholders in their decision making process. There is need to involve all the stakeholders as far as decision making is concerned. If all the stakeholders are consulted, chances are high that they will put maximum effort in their performance since they will be part of the team. Cultural values Each society has its own cultural values. Businesses operating globally often fail to execute their strategy when do not take into consideration the cultural values of host countries. Bibliography European Foundation for Quality Management (EFQM) Excellence Model (n.d) available at: Accessed on 17 July 2010. McCarthy J.E & Perreault W. D. (1996), Basic Marketing: A Global Managerial Approach, 12th Edition, Irwin McGraw-Hill, USA. Porter’s Five Forces Model, Accessed on 17 Jul.10, from: http://www.12manage.com/methods_porter_five_forces.html Porters Generic Competitive Strategies (ways of competing), Retrieved on 17 July 2010. from: http://www.ifm.eng.cam.ac.uk/dstools/paradigm/genstrat.html Robinson W (1997), Strategic Management and Information Systems, 2nd Edition, Prentice Hall, UK Smith P.R. (1999), Great Answers to Tough Marketing Questions, Kogan Page, UK. Read More