Business Improvement Solutions THINKING BUSINESS > DRIVING IMPROVEMENT > ACHIEVING EXCELLENCE Assisting organizations to develop their capability to continuously improve performance in a sustainable manner. SAI Global Business improvement Solutions Visit www.businessimprovementsolutions.com Call 1300 650 262 Email consulting@saiglobal.com
contents 03 about us Introduction to Business Improvement Solutions. 04 introducing the business excellence framework A comprehensive organizational improvement model. 06 our services Partnering to improve business performance. 16 Business EXCELLENCE PAYS Research that demonstrates the bottom line benefits of using Business Excellence to drive sustainable improvement in organizational performance. 18 Pathways to success Case studies and Networking Opportunities 14 Best practice for today and the future Enhancing the framework and understanding your business needs. consulting@saiglobal.com > 1300 650 262
1. about us SAI Global (ASX:SAI) is an applied information services company that helps organizations manage risk, achieve compliance and drive business improvement through: Delivering standards, regulatory and technical information; Adding value to this information; Creating training, communication and monitoring solutions; and Providing assurance through independent assessment. To assist clients with these services and to drive continuous improvement, SAI established an international advisory group called Business Improvement Solutions. This group assists organizations to drive improvement and manage risk through the development and delivery of tailored leading-edge business improvement solutions sourced from within the SAI group of companies. Business Improvement Solutions SAI s Business Improvement Solutions has been developed to help all organizations deal with the ever increasing pressure to grow in a sustainable way, while continuing to satisfy stakeholder requirements. With access to exclusive intellectual property including Business Excellence Models and Standards, the group offers a unique organization improvement approach that can be used to tackle issues such as: Corporate Governance Change Management Business Process Improvement environmental Management OHS Management Information Security Management Privacy and Data Protection ethics Fraud and Corruption Control risk Management Regulatory Compliance Standards Compliance Customer Satisfaction Creative Problem Solving Internal Audit Management Anti-Money Laundering While specific solutions are available in these broad areas SAI s expertise lies in driving organizational improvement by equipping its clients with the skills and knowledge they need to build and manage agile and innovative organizations. SAI also delivers solutions in the areas of: Six Sigma lean Manufacturing Lean Assessment ISO 14001/OHSAS 18001 ISO/TS 16949 AS9100
2. introducing the Business EXCELLENCE MODELS a comprehensive organizational improvement model SAI is focussed on driving business improvement using business excellence programs such as Baldrige in the United States, EFQM in the European Union and its exclusive access to the Business Excellence Framework in Australasia. These models are internationally recognized approaches for innovation, organizational improvement and sustainability, providing a unique offering for our clients. Business Excellence Framework Our approach to driving improvement is designed to offer a foundation for success for all organizations, large and small, private and public, whatever their purpose. It is an integrated leadership and management system that embraces all facets of an organization including: Leadership Customer and Market Focus Strategy and Planning People Information and Knowledge Process Management, Improvement and Innovation Success and Sustainability In delivering against these vital business elements in an integrated and coordinated way SAI Global seeks to drive tangible results for your business. consulting@saiglobal.com > 1300 650 262
The Eight Principles of Business Excellence SAI s business management philosophy draws on the expertise developed over 19 years by a community of multi-disciplined experts. This philosophy is built around eight business excellence principles. 1. Lead by example, provide clear direction, build organizational alignment and focus on sustainable achievement of goals. 2. Understand what markets and customers value, now and into the future, and use this to drive organizational design, strategy, products and services. 3. Continuously improve the system. 4. Develop and value people s capability and release their skills, resourcefulness and creativity to change and improve the organization. 5. Develop agility, adaptability and responsiveness based on a culture of continual improvement, innovation and learning. 6. Improve performance through the use of data, information and knowledge to understand variability and to improve strategic and operational decision-making. 7. Behave in an ethically, socially and environmentally responsible manner. 8. Focus on sustainable results, value and outcomes. The principles provide a powerful and integrated philosophy for providing best practice in leadership and guiding behaviour within your organization. Put simply, the Framework: Provides the foundation with which to develop your organization. Offers a solid structure for developing and improving different performance areas of your organization. Helps to achieve organizational goals and identify the interdependencies and interrelationships between each component of your organization. Provides a performance benchmarking program for your organization which sees your business regularly assessed against the key categories of the Framework. For more information please email us at consulting@saiglobal.com
3. our services partnering to improve business performance Achieving Excellence SAI partners with organizations to help them achieve sustainable outcomes which align to organizational objectives. Its approach its built around its five phase Achieving Excellence Model. Review improvements Understand the System Common understanding of the system and priorities agreed i.e. system outcomes Systems Thinking Lead and Manage the Change Understand the Business Excellence Framework and Principles Clarify Strengths and Opportunities for Improvement Approval to implement and accountability assignment Apply Improvement Techniques Allocation of resources for working ON the System By changing the mindset from working in the business to working on the business SAI works to create a change friendly culture of trust and excellence. Fostering awareness and understanding of the change process within the business is vital to all continual business improvement methodologies. In deploying a holistic approach, SAI provides linkages and support needed for long term successful organizational outcomes. It is a proven methodology for assessing and improving the performance of an organization s management systems and processes. consulting@saiglobal.com > 1300 650 262
3.1 From Information to Understanding SAI strives to transfer the necessary skills and understanding required for people at all levels to manage the ongoing improvement process in organizations. Organizations should seek to: Understand the Business Excellence Framework and Principles; Embed the principles of systems thinking and the practices of business excellence; Clarify strengths and opportunities for improvement; Drive tangible improvements through the facilitation of business improvement projects within your organization using appropriate improvement techniques; and Lead and manage change. SAI delivers organizations a range of workshops, follow-on activities and mentoring. Organizations are encouraged to undergo an assessment to identify strengths and opportunities for improvement. These opportunities can be converted into projects used in continuous improvement workshops. During this process employees will work on real life business problems and implement improvements that deliver sustainable and tangible results. At all times you are in the driver s seat. We assist you to facilitate your journey towards excellence. Organizational benefits include: A structured methodology to make sustainable and systematic improvements to systems, processes and practices; New skill and knowledge development that can be applied to make a real difference to their productivity and effectiveness; Commitment to a shared purpose; A culture of continuous improvement, which is integrated into normal business operations; Solutions to address operational challenges; and Assistance in achieving Business Excellence goals and objectives. Please feel free to speak to an SAI consultant regarding a customized solution that suits your organization.
3.2 Assessing Excellence SAI offers a comprehensive assessment of organizational performance against various business improvement methodologies including the Business Excellence Framework, to determine: How well is your organization performing; How you can track and measure your performance; How your organization s performance compares with similar organizations; What your organization needs to improve; Strategic planning processes and consistency of direction; and A structured and systematic approach to continuous improvement. All Organizations are Eligible SAI assesses organizations from all industry sectors including: Publicly Listed; Not-for Profit; Non-Government (NGOs); and Public Sector. Assessment has proved valuable to organizations of all sizes including: Large multi-national corporations; Mid-Market; and Small to medium sized enterprises (SMEs). Since working with sai global we have been able to balance our whole business and drive business results through excellent performance in all areas. brian hartnett, managing director, tasmanian alkaloids a subsidiary of the Pharmaceutical sector of Johnson and Johnson. consulting@saiglobal.com > 1300 650 262
Assessment Options There are different assessment options available to your organization according to your industry type, sector, scope and size. Facilitated Assessment SAI will facilitate a series of focus groups to take your organization through a facilitated assessment to capture quantitative and qualitative data. These facilitated sessions involve senior management, middle management, and a cross-section of employees from within your organization. Business Excellence Indicator SAI s Business Excellence Indicator (BEI) is a cost-effective and rigorous on-line questionnaire designed to self assess your organization s performance. The questionnaire is tailored to capture data from three organizational levels: Executive; Middle Management; and Staff. External Assessment SAI offers an independent, objective assessment against the categories and items of the Business Excellence Framework which includes: Desktop audits; Focus groups; Interviews; and Site visits. Organizations can also elect to enter the Australian Business Excellence Awards in the following disciplines: Leadership Strategy and Planning Knowledge and Information People Customer and Market Focus Innovation, Quality and Improvement Success and Sustainability Environmental Management Risk Management Governance Corporate Social Responsibility Occupational Health and Safety Quality Systems Customer Service Customized Assessment SAI offers customized assessments against the principles or categories of the Business Excellence Framework to determine organizational performance. These can be tailored to suit any sized organization.
3.3 Excellence in Knowledge Management 10 SAI s knowledge management solution provides organizations a method for capturing and sharing vital information, which can: Help to reduce duplication; Foster innovation; Educate and inform; Retain intellectual property; Streamline workflow processes; and Generate a culture of information sharing. This solution has been designed to help create an organizational environment where the knowledge is exchanged to support the development of better practice and improve staff performance in a way that aligns with the business objectives. SAI s proven approach to managing knowledge in your organization draws on a comprehensive methodology and can also serve as an assessment tool. 1. Understanding how knowledge impacts the organization s performance 2. Understand the organization s knowledge environment 3. Develop a knowledge strategy and set objectives 4. Implement knowledge enablers to achieve the objectives 5. Sustain knowledge performance 3.4 LAW 9000 - Excellence in Law (Australia only) The Excellence in Law benchmark provides a premium level of industry recognition for certified law firms and practices. The requirements for achieving this recognition include achievement and maintenance of certification to LAW 9000 - Legal Best Practice Tier I plus the requirements of Tier II. Tier II requirements include an approach that builds on best practice within the organization, including the adoption of key elements within the Business Excellence Framework that specifically provide value to Law Practices. consulting@saiglobal.com > 1300 650 262
3.5 On-line Performance Excellence Management SAI offers its clients an on-line solution designed to maximize performance and manage organizational risk. This on-line toolkit empowers you manage a variety of business risks that could impact organizational performance. Our process is simple: Capture > View > Track > Manage > Report By doing this you can monitor your organizational performance against stated business objectives. This solution has two modules: 11 1. Performance management 2. Risk management In using this on-line solution your organization will also enjoy the freedom of being able to: Monitor and track the achievement of objectives; Improve the effectiveness of resource allocations; Set up a structured framework and methodology using a corporate risk scorecard concept, customised to your organization s specific requirements; Develop a risk profile of your organization to facilitate problem analysis and potential risk analysis; Develop and implement an improvement culture within your organization; and Build and implement a hands-on, strategic, enterprise-wide performance and risk management tool.
3.6 Recognised Training Qualifications in Business Excellence SAI s Graduate Certificates in Business Excellence is a nationally recognised qualification and is essential for training the leaders of tomorrow. This qualification allows you to specialise in Business Excellence (Evaluation) 91297NSW or (Organizational Self Assessment) 91298NSW. 12 Course Duration Both Graduate Certificates consist of five days face-to-face training interspersed over four months with an additional six months to complete self-paced assessment work. Requirements To attain the Graduate Certificate in Business Excellence (Evaluation) 91297NSW or the Graduate Certificate in Business Excellence (Organizational Self Assessment) 91298NSW you will need to: Complete Module 1. These are the core units for both graduate certificates. Complete Module 2A or Module 2B to major in Evaluation or Organizational Self Assessment. Achievement These formal qualifications will provide you with the skills and knowledge required to understand and utilize the Business Excellence principles. This highly interactive program is designed to give you immediate workplace competencies in undertaking self-assessments or evaluations within your organization. The course recognises the increasing requirement for demonstration of competencies in undertaking self-assessment and/or evaluation for business excellence. Please ask us about our in-house training solutions for your organization. consulting@saiglobal.com > 1300 650 262
3.7 Customized Solutions We understand that there are a wide range of issues facing organisations today such as: Corporate Governance Change Management Business Process Improvement environmental Management OHS Management Information Security Management Privacy and Data Protection ethics Fraud and Corruption Control risk Management Regulatory Compliance Standards Compliance Customer Satisfaction Creative Problem Solving Internal Audit Management Anti-Money Laundering 13 We can meet your organizations requirements with a number of customized solutions within areas of: Leadership; Customer and Market Focus; Strategy and Planning; People; Information and Knowledge; Process Management, Improvement and Innovation; and Success and Sustainability. These solutions include, but are not limited to: Process identification; Process mapping; Strategic, business and operational planning; Customer service enhancement; Develop measures for your organization (lead and lag); Review processes for opportunities for improvement; Project management; Develop systems views; and Continuous improvement methodologies.
4. Building best practice enhancing the Business Excellence Model and understanding your business needs. 14 To help ensure business excellence models such as Baldrige, EFQM and the Business Excellence Framework in Australasia remain aligned with current industry practice and market trends regular research is conducted. In 2006 Massey University s Centre for Organizational Excellence Research conducted an independent review of the Business Excellence Framework designed to enhance its development, design, and market deployment. The research focussed on: Awareness: Application: Recognition: To create maximum awareness of the framework To assist organizations in understanding and applying the framework To provide recognition to role model organizations and promote best practices Methodology The review employed a consultative methodology comprising of the following stages: 1. Desk top research 2. User workshops with the Business Excellence Awards evaluators and clients of SAI 3. User survey with Awards evaluators and clients of SAI 4. Awareness and use survey 5. Business Excellence Framework custodian survey and interviews During the review the University considered numerous international developments in the area of business excellence including work undertaken across Europe. The Framework design and development focussed on generating market awareness, assisting organizations with its implementation, and recognising organizations that achieve excellence. Since the introduction of the Framework into our business we have improved significantly in our leadership, our strategic planning, Our business Planning and certainly our financial results. In short, we have been able to create a high performing, sustainable construction group. Harry Xydas, Founder and Executive Chairman, DORIC Construction Group consulting@saiglobal.com > 1300 650 262
Outcomes The report found that those surveyed had confidence in the design of the Business Excellence Framework with the need to maintain a development focus on its: Global and local relevance; International alignment; Foundation in best practice; Research base; Ease of understanding; and Assessment dimensions. Minor recommendations were made in regard to the principles, categories and items of the Business Excellence Framework. 15 The Framework Steering Committee consisting of an independent panel of members representing business, government and academia was responsible for reviewing and implementing these recommendations. SAI reviewed the recommendations and has integrated a number of the key findings in its business processes including its marketing strategies, partnerships, research and service delivery. For further information please email us at consulting@saiglobal.com
5. Business EXCELLENCE Pays Research that demonstrates the bottom line benefits of using The Framework to drive sustainable improvement in organizational performance SAI aims to provide organizations with valuable quantitative data to strengthen their case for using the Business Excellence Framework. 16 The Index The Business Excellence Index compares the performance, over 16 years, of the Australian Stock Exchange-listed Australian Business Excellence Awards winners against the Australian Stock Exchange All Ordinaries Index. The first survey was conducted in 2003 by SIRCA, a financial services research organization and looked at all Australian Stock Exchange listed Australian Business Excellence Award winners. Methodology The methodology employed by SIRCA is similar to that used by the National Institute of Standards and Technology in the United States for the Baldrige Index. The latest round of the survey includes participants and results to 30 June 2006. The index methodology involved investing a hypothetical sum in each of the Australian Stock Exchange traded Business Excellence Award recipients stock at the end of the month the Excellence Awards were announced. If the company was not listed at the time of announcement, the investment was made on the company listing date. Each stock was tracked from the first available trading day (first investment made 31 October, 1990) through to close of business on 10 March, 2003 and then reinvested on 10 March 2003 and tracked through to close on 30 June 2006. Where recipients businesses were sold to other organizations, the investment monies were reinvested in the new entities if they were listed on the ASX. A$5,000 was invested in each parent company that received an award. For subsidiaries or divisions that received the award, a portion of the A$5,000 was invested and calculated by multiplying the percent of the parent company s employee base the subsidiary or division represented at the time of its award. In order to benchmark the returns, the same total dollar amount was invested in the Standard and Poors All Ordinaries Accumulated Index on the same day. The Standard and Poors All Ordinaries Accumulated Index was used as it incorporates dividends and capitalisation changes and represents the top 500 companies listed on the Australian Stock Exchange (ASX). An in-depth evaluation of each investment value was undertaken by measuring the change in investor s wealth over the life of the investment, taking into account all changes in the share ownership and cash flows from or to the investor. The value of each investment was adjusted for stock splits, dividends, rights, bonus issues and consolidations. The hypothetical investment excluded transaction costs. consulting@saiglobal.com > 1300 650 262
Definitions The stock price used was the volume weighted average price (VWAP), which is a measure of the price at which the majority of a given day s trading in a given stock took place (calculated by taking the weighted average of the prices of each trade). The method is used by institutional traders who often break a given trade into multiple transactions. The total holding period return (THPR) is the total return from an investment over a specific period of time. It incorporates both price and income changes. Results The hypothetical investment in all listed Australian Business Excellence Award recipients generated a significantly higher return than that of the market benchmark, Standard and Poors Accumulated Index. A portfolio of Business Excellence award recipients generated a 169 percent return, outperforming the Standard and Poors Accumulated Index benchmark of 113 percent. The portfolio grew from A$44,113 invested over the 1990 to 2002 period, to A$118,447 by 30th June 2006. Table 1 presents a summary of the results. 17 Award Recipients Standard and Poors All Ordinaries TOTAL A$ INVESTMENT 31 OCT 1990 TOTAL A$ VALUE 10 MAR 2003 TOTAL A$ VALUE 30 JUN 2006 THPR % SINCE 2003 THPR % SINCE 1990 $12,192 $44,113 $118,477 168.58% 872.76% $12,192 $21,251 $45,197 112.68% 270.71% Table 1: 1990-2006 Australian Business Excellence Award Winners versus Standard and Poors Accumulated Index Conclusion Given the strong performance of the Australian Business Excellence Index in comparison to the ASX All Ordinaries Standard and Poors Accumulated Index, the following research conclusions can be drawn: a. The Australian Business Excellence Index provides valuable quantitative data on the impact of strong leadership and management on stock price and provides investors with a tool to drive safer investments and better returns. b. Organizations that embrace and effectively implement the principles and practices of the Business Excellence Framework achieve outstanding and sustainable results. Business EXCELLENCE AWARD winning OrganizationS OUTPERFORM THE AUSTRALIAN ALL ORDS BY more than 3 TO 1.
6. Pathways to Success Case Studies and networking opportunities 18 6.1 Case Studies Being an applied information services company, at SAI we understand the importance of providing our clients with practical examples and the opportunity to learn. Therefore we have worked with our clients to collate a selection of case studies that are available for viewing on our website at: >> www.businessimprovementsolutions.com >> Please feel free to browse the case studies to: Learn from industry practitioners Identify ways in which your organization can improve Identify issues that may affect your organization See practical examples within organizations using the Business Excellence Framework SAI has extensive experience working to Inform, Inspire and Improve a wide range of organizations. 6.2 Business Leaders Network SAI hosts Business Leaders Networks to provide Australian organizations the opportunity to network and discuss key issues that are facing them today. Please contact us on 1300 650 262 to find out when the next forum is being held in your state. 6.3 Better Business Conference Australia s leading organizations converge at this prestigious annual event. The Better Business Conference brings together previous Australian Business Excellence Award winners and leaders from the Australian business community to share their knowledge on sustainable business improvement practices. This event also includes the Australian Business Excellence Awards Presentation. consulting@saiglobal.com > 1300 650 262
improving your business is our business. 19 For further information CALL 1300 650 262 EMAIL consulting@saiglobal.com VISIT www.businessimprovementsolutions.com
For further information CALL 1300 650 262 EMAIL consulting@sai-global.com VISIT www.businessimprovementsolutions.com