Category: Management 8th October 2019
A business excellence model not only provides a complete integration and improvement of activities in the organization. However, it is also developed on the basis of award programs by national bodies. This helps in the widespread adoption of business excellent concepts in order to improve the economic national performance of the organization. These models can be used by the organization for the self-assessment, which enables the organization to identify opportunities for improvement perspectives. These areas help to strengthen the organizational development. This paper seeks to discuss and analyze various uses of business management tools and quality management policies with a goal of applying the principals to improve the business performance, a stake holder value, the customer focus and process management.
Al-Futtaim is one of the United Emirates’ Companies that is progressive as compared to other regional businesses. It has recently announced the group’s participation in the annual environmental, water and energy exhibition of the year 2013. The group privately owns one of the biggest exhibitors. Al-Futtaim is not only aligned with the government’s business sustainability and progressive strategy but also attracts and advocates for a healthier and cleaner environment for the coming generations. Al-Futtaim is among the best leisure and hospitality, automotive, the real estate development, distribution, retail and wholesale trading, as well as financial services as adopted in the company’s initiative to improve efficiency.
It is vital to note that Al-Futtaim group provides excellent air conditioning concepts in order to offer efficiency in cooling and power consumption reduction. The group ensures that special building as well as hygiene products reducing water waste are used and encourages recycling methods. More than 13 companies have participated in events that feature the most extraordinary and prestigious brands in the world as well as some of the most renowned organizations in the region. Al-Futtaim Motors has in the past showcased their hybrid technology as one of the best products in the world. The company has divisions that to present the company’s product line up. Al-Futtaim Group also has Real Estate which has significant accomplishments in the energy sustainability and efficiency through an energy management system. According to Kanna (2011):
MEP Maintenance Division of Al Futtaim Engineering is the first in the UAE to implement and operate the district cooling plant with 100% treated sewage effluent recycled water for condensing, which resulted in saving of 121 million gallons of potable water annually while contributing to the reduction of carbon emission of 15,000 tons, till date. Building Management Systems monitor and control services such as heating, ventilation and air-conditioning, ensure efficiency.
Al Futtaim’s owns many different brands that showcase some energy-friendly products and technologies such as photo catalytic hydrophilic coating fins and air conditioners with the inverter technology. This leads to more than 30% less of all the power consumption against the standard products. It also ensures that food waste disposers are used to reduce the food waste in households.
In this case, health and safety, the funds available and the financial aspect of building the management systems, budget prospects, budget control, the human relations and motivations are important in the company. The company is aware that an economical friendly environment is a challenging field. However, it has come up with an effective strategy to enable it to come out with some findings. They will help in the effective running of the company. It considers health and safety because the fist aspect is the well being of the people involved. The funds are available to help developing a budget to fund this process through a business excellent model.
A business excellence model provides the complete integration and improvement of activities in any organization. It is also developed on the basis of award programs by national bodies. This helps in the widespread adoption of business excellent concepts in order to improve the economic national performance of the organization. In order to effectively analyze the business excellence strategies and practices, there is the need to consider many different aspects related to the business excellent management and business excellent practices. These aspects involve: “Achieving Balanced Results, Adding Value for Customers, Leading with Vision, Inspiration & Integrity, Managing by Processes, Succeeding through People, Nurturing Creativity & Innovation, Building Partnerships and Taking Responsibility for a Sustainable Future”. The EFQM business excellent model is an outstanding management model and practice that can be used in the organization to improve the culture and ensure business excellence. It is vital to note that a business excellence model is the creation of the European Foundation for Quality Management (EFQM). It has been developed to support all management of organizations in Western Europe in order to speed up the process of decisive making from a quality perspective to achieve goals and gain a competitive advantage globally (Kanji, 2012).
The business excellence model not only provides the integration of the complete improvement in the company and the whole improvement of activities as well. This generally means that the business excellence model is developed by different national bodies on the basis of award programs. These bodies develop some awards as the secondary adoption to business excellence concepts. This leads to the improvement of the economic performance nationally. Many organizations which use the business excellent model apply them for their self-assessment. In this way, the companies identify opportunities that need the improvement, ideas and the areas of strength for the organizational development in future. The business excellent model helps organizations to have the self-assessment, visioning, the strategy formulation, supplier management, project management and mergers. When the business excellent management model is used, the organization not only improves its business excellence criteria. It also improves its company practices within a broad channel. This helps to encourage the best practices in business areas which in return affect benefits and the performance (Dale et al. 2000). This model is utilized for different criteria which help to identify weak and strong management areas and practice. This means that this model is used as a benchmarking tool to identify the best practice in order to disclose gaps that need to be looked into. This system or model connects the best practice, benchmarking and business excellence models as the fundamentals to the continuous improvement and success of the organization.
The EFQM is a self assessment method developed from a plausible logic in order to ensure the financial and customer satisfaction, the positive impact on the society and the people’s satisfaction. This can only be achieved through strategies, policy, people management, process management, strategy and leadership. Therefore, the business excellent model is used in order to improve the results that should be. The essence of this framework is a proactive attitude rather than a reactive one. It is about changing the business and running it effectively and efficiently. The EFQM Model has undergone the review the process to ensure that it reflects effectively. It encourages organizations to exit from rigid structures in the corporation and move to better ones which are developed for the best economic environment (Wikilston & Willmot, 1995). The business excellence model is developed from a framework that helps in the assessment of performance in order to identify the poor and key strengths, as well as the improvement areas; to integrate all the existing procedures, processes and tools; to remove duplicates and align all. Additionally, the business excellence framework helps to introduce a different way of thinking to encourage, stimulate and reflect the continuous improvement and identify the actions that drive results; to attain more attention and redundant approaches.
Business excellent models have many benefits which include: a clear path to address the stakeholders’ needs; ensuring all the initiatives that are not on a rejected basis but interlinked towards one goal; enhancing the credibility and trustworthiness by achieving the sustainable and relevant results; achieving faster results efficiently and effectively; defining tailored solutions for the organization being easy to understand and use. The business excellent method is developed for all organizations, regardless of their sector or size. It can be used by any company because it is not a holistic prescriptive. However, the big question is how exactly the EFQM works. The EFQM is not a complex model. It is simplified as the company’s assessment. Therefore, it is the exercise practices by the organization against a set of systems and criteria. These systems and criteria are mostly based on fundamental concepts of excellence which are achieving balanced results, adding values for customers, leading with the vision, inspiration and integrity, managing by “processes, succeeding through people, nurturing creativity & innovation, building partnerships and taking responsibility for a sustainable future” (Juran, 1988). The business excellence model encourages companies to initiate self-assessment programs in different aspects of business. This not only improves the performance but also scores excellence in the organization. The first step is to understand the current business performance and organizational systems, as well as some actions to initiate in order to improve excellent results.
Al Futtaim’s group conducts the self-assessment in all its processes in order to score excellence with a clear documented program to ensure the customer satisfaction. The group has achieved 95% attainment of all company’s service standards. However, some of the processes have drawn a different picture about the organization. The focus on excellent working procedures and service standards has helped to ensure the success of the model. Most parts of the organization meet service standards. However, there are more expenses as compared to other business models. The business excellent model as used by Al Futtaim’s group has been developed to deliver strategic improvements and business directions. It contains a unique framework that enables the company to follow directives in order to attain and capture business processes and practices globally. The business model retains its relevance because of dynamism which is its core. This means that the model has the ability to translate, evolve and survive in the changing business performance nature. The model has helped Al Futtaim’s group to improve its business excellence practices, capabilities and results, facilitate the communication with a common language of excellence across the company and share the best practices, serving as a working tool for understanding and managing the performance and providing the planning guidance, as well as identifying learning opportunities (Hayes, 2010).
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According to John Seldom, a critic from the point of view of ISO 9000, there is a problem with the content and method used in the business excellence model. Seldom questions the fact that the model is a quality system. He asserts that it is simply a management support system or the criteria that do not necessarily accelerate quality making processes in order to achieve the competitive advantage globally. According to the critic, the company’s conduction of self-assessment cannot really describe the relationships between enablers and the processes required. In this case, work processes should focus on the customer delivery, work processes and values and some bottom line benefits. Some of the problems faced in the business excellence implementation are related to the efficiency of the company’s processes and the outcomes or results. The organization’s size, complexity and the extent of its management processes determines or affects the improvement of its processes. This simply means that similar trends can be observed in such companies all over the world. In this case, reporting authorities, job roles and management systems should be analyzed and inspected in order to enable the easier self-assessment. The evidence on the customer satisfaction, result oriented methods and a critical analysis of management systems should be reported on a daily basis. However, this would be more difficult in a large and complex company. Many implementation problems and issues should be implemented from different stages which include such as: an envisioning stage, an initiation stage, a diagnosis stage, a restructuring stage and an evaluation stage. Kettinger, Teng and Guha recommend using a composite framework in order to ensure that obstacles, hurdles and other issues are being dealt with. Kettinger also recommends that the management team should assess the scope of the problem and redesign this volume. In this way, the company should use the principals to provide the additional responsibility (Kettinger, Teng, & Guha, 1997). However, Al Futtaim’s group business excellent models have attracted many benefits such as a clear path to address the stakeholders’ needs, ensuring that all the initiatives are not on a rejected basis but being interlinked towards one goal, enhancing the credibility and trustworthiness while achieving sustainable and relevant results. Also, this should be achieving faster results efficiently and effectively, defining the tailored solutions for the organization that being easy to understand and use. The company has also simplified its assessment. Therefore, it enjoys exercise practices against a set of systems and criteria.
The business excellence model not only provides a complete integration and improvement of activities in any organization. However, it is also developed on the basis of award programs by national bodies. This model as used by Al Futtaim’s group has been developed to deliver the strategic improvement and business directions. It contains a unique framework that enables the company to follow directives in order to attain and capture business processes and practices globally. These systems and criteria are mostly based on the fundamental concepts of excellence which are achieving balanced results, adding values for customers, leading with vision, inspiration & integrity, managing by processes, succeeding through people, nurturing creativity & innovation.