Malcolm Baldrige Values and Concepts Part 10 – Focus on Results and Value Creation
In this issue, I will share my experience from the conglomerate and its operating companies. For the purposes of this article, I will articulate the Focus on results and value creation which is one of the Eleven values and concepts in Malcolm Baldrige Criteria (Source: http // www.nist.gov / quality). As before, I will use case studies to show how some of the companies implement them.
To recap, below are the Eleven core concepts and values of the Baldrige criteria: –
Visionary Leadership | Customer-oriented excellence | Organizational and personal learning | Valuation of employees and partners | Agility | Focus on the future | Management for innovation | Management by fact | Public responsibility and citizenship | Focus on results and value creation | Systems perspective
I will deal with the bold value in this article as follows: –
Articulated focus on results and value creation
An organization’s performance expectations should focus on key business and operational results. These results should be used to create and balance value for your key stakeholders: –
- Customers
- employees
- shareholders
- suppliers and partners
- the public and the community
By creating value for your key stakeholders, your organization builds loyalty and contributes to the growth of the economy. To meet the sometimes conflicting and changing objectives of balancing value, the organizational strategy must explicitly include key stakeholder requirements.
This will help ensure that plans and actions meet the needs of different stakeholders and will avoid adverse impacts on stakeholders. Using balanced leading and lagging indicators offers an effective means of communicating short- and long-term priorities, monitoring actual performance, and providing a clear basis for improving results.
Case study on focus on results and value creation
It was a very strong focus on creating results in all the companies I worked with. Although there are some different stakeholder needs, rarely is enough emphasis placed on other stakeholders except shareholders, customers, employees, partners, and the community. By the way, the lists are ranked based on their priorities.
The needs of the shareholders are very strong traditional in the philosophy of these companies. It is not the case where the leaders of these companies do not appreciate the needs of other stakeholders, it is a case where they cannot meet all of these needs consistently, hence the priority ranking. Unfortunately, priorities became the norm after a few moments of noncompliance.
Businesses are still very much chasing financial numbers, market numbers at best. Not many chase the productivity numbers, hence the operations.
Opportunity for improvement
Based on Dr. Kaplan’s Balanced Scorecard concept, financial results are the consequence of the focus given to the client, the operation excels in the satisfaction of these clients, the competence of the human resource that performs these operations, etc. .
If this balanced scorecard concept is fully appreciated, leaders must realign the business to meet the needs of stakeholders, that is, the financial side by preparing the human resource capabilities and process capabilities to satisfy customers. customers so that they stay with the companies. Consequently, the financial result should be the expected result.
In short, having understood the Focus on results and value creation at Malcolm Baldrige Values and Concepts, it should be viewed as a strategic rather than an operational issue. Most companies have a marketing strategy, some would have an operational strategy, would you like to consider having an HR strategy as well? Leaders can compare their Baldrige Winners CEO on their TQM successes at this value. My next article will articulate the following core concepts and values in System perspective
source for Malcolm Baldrige criteria: http: //www.quality.nist.gov/Criteria.htm