Sustainability Assessment According to the Selected Business Excellence Models
Abstract
:1. Introduction
- strategicness refers to the degree of emphasis on strategy (i.e., the extent to which the focus is broad, considers cumulative effects, is forward-looking, and incorporates intergenerational timescales);
- integratedness refers to the extent to which the various assessment techniques used are combined/aligned; and,
- comprehensiveness refers to the coverage of issues, which, for sustainability assessment, needs to include the three categories or pillars of environmental, social, and economic effects as well as indirect effects.
- Business Excellence is about doing your Best; Excellent Organisations achieve and sustain outstanding levels of performance that meet or exceed the expectations of all their stakeholders [47]. Finally, Business Excellence Models provide a systematic approach for addressing stakeholder requirements [45].
- Business Excellence Models offer a means for improvement along key stakeholder dimensions and, thus, provide opportunities for the integration of sustainable development and traditional business processes [44].
- Sustainability can be achieved only through the integration of CSR and Business Excellence [47,48]. The idea is reflected also by the one of the fundamental concepts of excellence. It is called “creating a sustainable future” and it is characterized like “excellent organizations have a positive impact on the world around them by enhancing their performance whilst simultaneously advancing the economic, environmental and social conditions within the communities they touch” [47].
- Excellence is required on all level, but not every Business Excellence Model has an integral approach taking into account environmental, economic, and social aspects. Finally, it is necessary to improve this type of models as being applicable for the sustainability assessment based on Business Excellence and on three responsibilities: environmental, social, and economic.
2. Materials and Methods
- analysis of criteria and sub-criteria in the selected Business Excellence Models
- analysis of the weight ratio of results and non-results criteria of selected Business Excellence models; and,
- analysis of the weights of the individual non-results criteria within selected Business Excellence models in relation to the weight of all non-results criteria in the analysed Business Excellence model.
- The Euclidean distance
- The Euclidean Squared distance
- The Manhattan distance
- The Chebyshev distance
3. Results
3.1. Interpretation of the Comparative Analysis
- Q1: What weight ratio is assigned to the result and non-results criteria within the analysed models?
- Q2: What weight is assigned to each non-results criterion within the analysed models?
3.2. The Design of Business Excellence Model
- Criterion 1: Leadership (90 points)—the leadership of the organization and the way how it is managed reinforces the organization; how organization fulfils its legal, ethical, and social responsibility; focuses on the creation and development of culture, values, vision, ethical principles; the organization’s overall direction; to explore how top management takes responsibility for shaping strategy and values, how to address the consistency of expectations and sustainability; how it develops the values needed for long-term success and responsibility for the community and the environment.
- Criterion 2: Strategy and planning (75 points)—focuses on planning (including improvement plans), strategy development, implementation, implementation, and revision if necessary in the light of circumstances and taking into account the impact on the global and/or local environment, community, society, and economy; plans should take into account current and future challenges as well as the mission and vision of the organization; it examines how goals are reported throughout the organization, how performance is monitored, and how is measured and assessed the progress.
- Criterion 3: People (90 points)—focuses on the education and development of employees, the quality of their lives, the performance of individuals and teams, the working climate, the way employees are taken care of in order to make full use of their potential in order to meet the needs of the whole organization; how an organization evaluates employees and sets the necessary skills and knowledge; as an organization accepts that employees are important and should be valued, motivated, and enabled to engage in the organization’s goals and use their skills and knowledge for the benefit of the organization.
- Criterion 4: Customers and other stakeholders (90 points)—how an organization analyses its customers, other stakeholders and the market (identifying requirements, expectations, preferences and future trends), how it manages its relationship, and how it adds value to customers and other stakeholders; as an organization engages customers and other stakeholders to achieve long-term success on the market; listening to their voice, communicating with customers, other stakeholders and markets.
- Criterion 5: Processes (85 points)—examining the processes that the organization uses to create an increasing value for stakeholders; as an organization proposes and manages its processes in order to achieve strategic goals, how it promotes innovation and improvement of these processes, and thus improves the quality of their products; how it achieves lasting success.
- Criterion 6: Information and knowledge (70 points)—focuses on managing processes aimed at gathering information and knowledge, developing and using them to gain competitive advantage; how an organization measures performance in relation to the use of knowledge and information for improvement; as an organization uses information and knowledge for learning, planning, and decision-making that includes competitive analysis and benchmarking, helping the organization to determine actual performance, focus on improvement, and innovation to achieve excellence and sustainability.
- Criterion 7: Social responsibility and sustainability (50 points)—how the organization addresses its responsibility to society through the protection of the environment and natural resources; how the organization addresses its responsibility to society through the promotion of ethical and legal conduct, ensuring the protection of interests of its different stakeholders; how the organization addresses its responsibility to society through the promotion of good citizen practices towards the community, contributing to the development of their key communities); emphasis is also put on the fight against corruption and fraud.
- Criterion 8: Results (450 points)—this criterion is about performance and organization improvement in all key areas-results for: products, processes, customers, employees, leadership and organization leadership, market and finance, growth performance and organization development in relation to key stakeholders parties to verify their fulfilment; it is also essential to compare the level achieved against competitors and other organizations offering similar products, to examine the current level and trends; focuses on examining the methods that are used by the organization to demonstrate how well it performs and how likely it will be in the future; the organization must have clear objectives and appropriate indicators (indicators should go beyond the current level and include indicators relevant for future success), data available to assess performance against objectives and carry out reviews and improvements. Excellent organizations use systems and processes to measure and interpret internal and external indicators to help ensure future sustainability in relation to their economic, environmental, and social viability.
4. Discussion
- All analysed models have criteria broken down into results and non-results (first findings), the non-results criteria are 6 on average (Table 1).Analysis of Business Excellence models has shown that only in two models (The EFQM Excellence Model, The South African Excellence Model) have results criteria the same weight ratio as the non-results criteria (50%:50%). In other models, the weight ratio of the results and non-results criteria is in the range of 20%:80% to 45%:55%.Finally, the calculated median suggests that the appropriate ratio between the results and non-results criteria is 45%:55%. The unequal representation of the results and non-results criteria is the outcome of the authors of the analysed models (experts from industry and academia), taking into account changes in the market place in the country—the differences between the models are the expression of the preferences of the individual research groups.
- The analysed models differ in the number and structure of criteria and sub-criteria (second findings).Although the Business Excellence models are based on similar principles, they differ in the number and structure of the criteria, respectively, sub-criteria (Table 1).Bassioni, Hassan and Price proposed The Business Excellence model divided into enabling and results criteria [88]. The enabling criteria include: leadership; customers and stakeholder focus; strategic management; information and analysis; people, partnerships, suppliers, physical resources, intellectual capital, risk, work culture, and process management. The results criteria include: internal stakeholder; project, external stakeholder; and organisational business results.Due to the different number of non-results criteria in the analysed models, the increasing importance of social responsibility and sustainability, the number of criteria listed in Table 1, we identified seven non-results criteria based on an in-depth analysis of the criteria and sub-criteria and we have analysed their points assessment in relation to identified criteria.Finally, as key criteria in the area of self-assessment, we propose seven non-results (enablers) criteria (Leadership; Strategy and planning; People; Customers and other stakeholders; Processes; Information and knowledge; Social responsibility and sustainability) and criterion results.
- The peculiarity of the analysed models is the placing of different importance on the individual criteria in the respective model (Table 1, Table 2, Table 3, Table 4, Table 5, Table 6, Table 7, Table 8 and Table 9)—third findings.According to the own comparative analysis, analysis of Business Excellence models has shown that only in the EFQM Excellence Model are all non-results criteria weighted equally. In other models, it is different.The scoring system of the EFQM Excellence Model has been shown to vary across industries and has been criticised as not corresponding to the way that companies are working ([88] in [89]). According to Bassioni, Hassan and Price, different methods for assessing the actual weights of the model’s criteria have been reported in literature [88]. For example, Eskildsen et al. used factor regression coefficients ([88] in [89]). Cheng and Li used the analytic hierarchy process (AHP) to determine the weights of performance measures of a business process ([90] in [89]). According to Eskildsen et al. any of the empirical approaches mentioned would be preferred to “an arbitrary weight structure, which has never been empirically tested”, as with the case of EFQM ([88] in [89]). In the research about the calculation of model criterion weights by Bassioni, Hassan and Price, the factor regression coefficients method was chosen because “it assesses the actual impact of each criterion on the organisation’s performance, whereas with AHP requires expert judgement data that can be obtained from the importance rating of each criterion, but might affect the accuracy of outcomes in the paired comparisons process, as well as reflecting the importance perception rather than actual impact” [89].According to Bassioni, Hassan and Price, it is difficult to assess which method is more accurate for the calculation of criterion weights [89]. According to the own comparative analysis, the calculated weightings of the criteria are: Leadership (90 points), Strategy and planning (75 points), People (90 points), Customers and other stakeholders (90 points), Processes (85 points), Information and knowledge (70 points), and Social responsibility and sustainability (50 points).Finally, what the studies illustrate is that the own opinion of each of the researcher brought a different view of the criterion weights. The methods used to calculate the weights of individual criteria are choice and opinion of experts from industry and academia—the differences between models are the expression of the preferences of the individual research groups.
- There are differences between the proposed model and the analysed models (Figure 2, Figure 3, Figure 4, Figure 5 and Figure 6; Table 11)The proposed model (Figure 1) was compared with the analysed models based on the calculation of their mutual distances. The four metrics were used to express the distance (The Euclidean distance, The Euclidean Squared distance, The Manhattan distance, The Chebyshev distance).The model, which (based on the calculation of mutual distances) was closest to the proposed model, is for all four metrics used: The Singapore Business Excellence Framework. In one case (The Chebyshev distance) shares the first place with: The Baldrige Excellence Framework (United States of America), Modelo de Excelencia en la Gestión (Kostarika), El Modelo de Excelencia en la Gestión (Peru), and El Modelo para una Gestión de Excelencia (San Salvador). This is, on the one hand, caused by the same ratio between the results and non-results criteria as the proposed model (45%:55%) and similar point distribution in the non-results criteria, as in the proposed model. The most distant model from the proposed is for all metrics used Modelo de Excelencia del Premio Nacional de Calidad de la República de Cuba. This is due to the diametrically different ratio between the results and the non-results criteria as the proposed model (20%:80%), which is different from the other analysed models too.Finally, based on the calculation of mutual distances, it is possible to compare not only analysed models with the proposed model, but also it is possible to compare the individual models. In graphical representation (Figure 2, Figure 3, Figure 4, Figure 5 and Figure 6), it is possible to identify clusters of models that have very similar (sometimes identical) structure (criteria of the model) and place similar/equal importance on the individual criteria of the model. Such cluster consists (for example based on the Euclidean distance) from following models: Japan Quality Award Framework (Japan), Modelo para una Gestión de Excelencia (Argentina), The Baldrige Excellence Framework (United States of America), Modelo de Excelencia en la Gestión (Costa Rica), El Modelo de Excelencia en la Gestión (Peru), El Modelo para una Gestión de Excelencia (San Salvador), and Singapore Business Excellence Framework (Singapore).
5. Conclusions
- all analysed models have criteria broken down into results and non-results, the non-results criteria are 6 on average,
- the analysed models differ in the number and structure of criteria and sub-criteria, and
- the peculiarity of the analysed models is the placing of different importance on the individual criteria in the respective model.
Author Contributions
Funding
Conflicts of Interest
References
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The Business Excellence Models | Results Criteria | Non-Results Criteria | |||
---|---|---|---|---|---|
Points | % | Points | % | Number of Criteria | |
Modelo para una Gestión de Excelencia (Argentina) | 440 | 44.00 | 560 | 56.00 | 6 |
Australian Business Excellence Framework (Australia) | 300 | 30.00 | 700 | 70.00 | 6 |
Modelo de Excelência da Gestão (Brazil) | 450 | 45.00 | 550 | 55.00 | 7 |
Canadian Framework for Business Excellence (Canada) | 420 | 42.00 | 580 | 58.00 | 6 |
Modelo Chileno de Gestión de Excelencia (Chile) | 400 | 40.00 | 600 | 60.00 | 7 |
Modelo de Excelencia en la Gestión (Costa Rica) | 450 | 45.00 | 550 | 55.00 | 6 |
Modelo de Excelencia del Premio Nacional de Calidad de la República de Cuba (Cuba) | 200 | 20.00 | 800 | 80.00 | 7 |
The EFQM Excellence Model (Europe) | 500 | 50.00 | 500 | 50.00 | 5 |
Modelo Iberoamericano de Excelencia en la Gestión (Ibero-America) | 450 | 45.00 | 550 | 55.00 | 5 |
Japan Quality Award Framework (Japan) | 450 | 45.00 | 550 | 55.00 | 7 |
Malaysia Business Excellence Framework (Malaysia) | 350 | 35.00 | 650 | 65.00 | 6 |
El Modelo de Excelencia en la Gestión (Peru) | 450 | 45.00 | 550 | 55.00 | 6 |
El Modelo para una Gestión de Excelencia (San Salvador) | 450 | 45.00 | 550 | 55.00 | 6 |
Singapore Business Excellence Framework (Singapore) | 450 | 45.00 | 550 | 55.00 | 6 |
South African Excellence Model (South Africa) | 500 | 50.00 | 500 | 50.00 | 6 |
The Baldrige Excellence Framework (United States of America) | 450 | 45.00 | 550 | 55.00 | 6 |
Modelo de Mejora Continua (Uruguay) | 350 | 35.00 | 650 | 65.00 | 7 |
minimum | 200 | 20.00 | 500 | 50.00 | 5 |
maximum | 500 | 50.00 | 800 | 80.00 | 7 |
average | 415.294 | 41.53 | 584.706 | 58.47 | 6.176 |
median | 450 | 45.00 | 550 | 55.00 | 6 |
lower quartile | 400 | 40.00 | 550 | 55.00 | 6 |
upper quartile | 450 | 45.00 | 600 | 60.00 | 7 |
The Statistical Characteristic | Leadership | |
---|---|---|
Points | % | |
minimum | 70 | 12.50 |
maximum | 120 | 21.82 |
average | 93.53 | 16.19 |
median | 100 | 16.36 |
lower quartile | 90 | 12.73 |
upper quartile | 100 | 18.33 |
The Statistical Characteristic | Strategy and Planning | |
---|---|---|
Points | % | |
minimum | 45 | 8.18 |
maximum | 120 | 21.82 |
average | 80.59 | 13.94 |
median | 80 | 13.85 |
lower quartile | 80 | 12.31 |
upper quartile | 85 | 15.45 |
The Statistical Characteristic | People | |
---|---|---|
Points | % | |
minimum | 45 | 8.18 |
maximum | 140 | 24.14 |
average | 99.12 | 16.97 |
median | 100 | 16.36 |
lower quartile | 85 | 15.45 |
upper quartile | 110 | 18.46 |
The Statistical Characteristic | Customers and Other Stakeholders | |
---|---|---|
Points | % | |
minimum | 60 | 12.00 |
maximum | 200 | 25.86 |
average | 107.06 | 18.09 |
median | 100 | 16.92 |
lower quartile | 85 | 15.45 |
upper quartile | 110 | 20.00 |
The Statistical Characteristic | Processes | |
---|---|---|
Points | % | |
minimum | 70 | 12.73 |
maximum | 150 | 24.00 |
average | 98.82 | 16.95 |
median | 90 | 16.07 |
lower quartile | 85 | 15.45 |
upper quartile | 110 | 18.75 |
The Statistical Characteristic | Information and Knowledge | |
---|---|---|
Points | % | |
minimum | 50 | 7.50 |
maximum | 95 | 16.36 |
average | 78.21 | 13.38 |
median | 85 | 13.71 |
lower quartile | 62.5 | 12.18 |
upper quartile | 90 | 16.29 |
The Statistical Characteristic | Social Responsibility and Sustainability | |
---|---|---|
Points | % | |
minimum | 30 | 5.36 |
maximum | 80 | 12.73 |
average | 53.85 | 8.93 |
median | 50 | 9.09 |
lower quartile | 50 | 9.09 |
upper quartile | 60 | 10.00 |
Median | Average | Number of Models with Highest Weight of the Criterion | Highest Percentage Weight | Highest Point Score | |
---|---|---|---|---|---|
Customers and other stakeholders | 16.92% | 18.09% | 8 | 25.86% | 200 |
Leadership | 16.36% | 16.19% | 5 | 21.82% | 120 |
People | 16.36% | 16.97% | 5 | 24.14% | 140 |
Processes | 16.07% | 16.95% | 4 | 24.00% | 150 |
Strategy and planning | 13.85% | 13.94% | 2 | 21.82% | 120 |
Information and knowledge | 13.71% | 13.38% | 4 | 16.36% | 95 |
Social responsibility and sustainability | 9.09% | 8.93% | 0 | 12.73% | 80 |
The Business Excellence Models | Symbol |
---|---|
Australian Business Excellence Framework (Australia) | |
Singapore Business Excellence Framework (Singapore) | |
Malaysia Business Excellence Framework (Malaysia) | |
Canadian Framework for Business Excellence (Canada) | |
South African Excellence Model (South Africa) | |
Modelo Chileno de Gestión de Excelencia (Chile) | |
Modelo de Excelência da Gestão (Brazil) | |
The Baldrige Excellence Framework (United States of America) | |
The EFQM Excellence Model (Europe) | |
Japan Quality Award Framework (Japan) | |
Modelo para una Gestión de Excelencia (Argentina) | |
Modelo de Excelencia en la Gestión (Costa Rica) | |
Modelo de Excelencia del Premio Nacional de Calidad de la República de Cuba (Cuba) | |
Modelo de Mejora Continua (Uruguay) | |
Modelo Iberoamericano de Excelencia en la Gestión (Ibero-America) | |
El Modelo de Excelencia en la Gestión (Peru) | |
El Modelo para una Gestión de Excelencia (San Salvador) | |
Proposed Business Excellence model |
The Business Excellence Models | The Euclidean Distance | The Euclidean Squared Distance | The Manhattan Distance | The Chebyshev Distance |
---|---|---|---|---|
Australian Business Excellence Framework (Australia) | 0.162440227 | 0.000521357 | 0.273376623 | 0.15 |
Singapore Business Excellence Framework (Singapore) | 0.042640143 | 3.30579 × 10−6 | 0.072727273 | 0.036363636 |
Malaysia Business Excellence Framework (Malaysia) | 0.107216732 | 0.000102236 | 0.182517483 | 0.1 |
Canadian Framework for Business Excellence (Canada) | 0.204306119 | 0.001668796 | 0.466363636 | 0.127272727 |
South African Excellence Model (South Africa) | 0.147062139 | 0.000372103 | 0.333636364 | 0.090909091 |
Modelo Chileno de Gestión de Excelencia (Chile) | 0.069084928 | 1.14153 × 10−5 | 0.159090909 | 0.05 |
Modelo de Excelência da Gestão (Brazil) | 0.136666331 | 0.000348856 | 0.327272727 | 0.081818182 |
The Baldrige Excellence Framework (United States of America) | 0.056040127 | 9.86271 × 10−6 | 0.109090909 | 0.036363636 |
The EFQM Excellence Model (Europe) | 0.192471958 | 0.001199638 | 0.486363636 | 0.127272727 |
Japan Quality Award Framework (Japan) | 0.07158189 | 2.6255 × 10−5 | 0.163636364 | 0.045454545 |
Modelo para una Gestión de Excelencia (Argentina) | 0.06292057 | 1.49019 × 10−5 | 0.148961039 | 0.037337662 |
Modelo de Excelencia en la Gestión (Costa Rica) | 0.056040127 | 9.86271 × 10−6 | 0.109090909 | 0.036363636 |
Modelo de Excelencia del Premio Nacional de Calidad de la República de Cuba (Cuba) | 0.276904562 | 0.004107213 | 0.506818182 | 0.25 |
Modelo de Mejora Continua (Uruguay) | 0.11700494 | 0.000113617 | 0.246853147 | 0.1 |
Modelo Iberoamericano de Excelencia en la Gestión (Ibero-America) | 0.193702507 | 0.0014078 | 0.436363636 | 0.127272727 |
El Modelo de Excelencia en la Gestión (Peru) | 0.056040127 | 9.86271 × 10−6 | 0.109090909 | 0.036363636 |
El Modelo para una Gestión de Excelencia (San Salvador) | 0.056040127 | 9.86271 × 10−6 | 0.109090909 | 0.036363636 |
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Jankalová, M.; Jankal, R. Sustainability Assessment According to the Selected Business Excellence Models. Sustainability 2018, 10, 3784. https://doi.org/10.3390/su10103784
Jankalová M, Jankal R. Sustainability Assessment According to the Selected Business Excellence Models. Sustainability. 2018; 10(10):3784. https://doi.org/10.3390/su10103784
Chicago/Turabian StyleJankalová, Miriam, and Radoslav Jankal. 2018. "Sustainability Assessment According to the Selected Business Excellence Models" Sustainability 10, no. 10: 3784. https://doi.org/10.3390/su10103784
APA StyleJankalová, M., & Jankal, R. (2018). Sustainability Assessment According to the Selected Business Excellence Models. Sustainability, 10(10), 3784. https://doi.org/10.3390/su10103784