SEC-ISM Overview of the PQA - WordPress.com Business Criteria of the PQA. " The PQA (Business)...

PMDP-SEC ISM, 2014B1 1

Public Management Development ProgramSenior Executive Class Innovation and Strategic Management The Organizational Performance Excellence Framework •  Pathways & Pitfalls to Organizational Transformation

Arnel D. Abanto Vice President Center for Quality & Competitiveness Development Academy of the Philippines [email protected]

Cert. No. CIP/4045/08/06/579 PROJECT MANAGEMENT SYSTEMCert. No. CIP/4045/08/06/579

PROJECT MANAGEMENT SYSTEM

INTRODUCTION

1. Why do we need ORGANIZATIONAL PERFORMANCE EXCELLENCE?

2. If we do,

WHY BUSINESS EXCELLENCE?

3. And if it is, what does it take to TRANSFORM AN AGENCY TOWARDS PERFORMANCE

EXCELLENCE?




In Pursuit of Development



•  Productivity-driven Economic Growth •  Greater Welfare for All •  Improvement in the Overall Quality of Life

The Deliverables of Development




1. The need for world competitiveness among nations

43 40 42

45 40

43 39 41 43

38 42

0

10

20

30

40

50

60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Philippines Competitiveness Ranking

Philippines

Compelling Reasons

Singapore

Malaysia

Thailand

Source: IMD World Competitiveness Yearbook 2013



The Philippines 2013 Competitiveness Ranking Up by 29 Notches from 2009

75

67 71

87 85

75

65

59 50 55 60 65 70 75 80 85 90 95

100 2006 2007 2008 2009 2010 2011 2012 2013

Philippines Competitiveness Ranking

Philippines

Source: World Economic Forum




Development can be Accelerated thru



Half of the countries in the world have a business excellence award

Organizational/Business Excellence




9

2. The need for citizens’ trust and confidence Compelling Reasons



"   LEGAL BASES

"   RA 9013 : Philippine Quality Award Act, Feb. 28, 2001

"   AO 161 : Institutionalization of Quality Management System in

Government

"   EO 605 : Institutionalizing the Structure, Mechanisms and Standards

to Implement the Government Quality Management Program,

Amending for the Purpose AO No. 161 S 2006




Overarching theme: “Good Governance and Anti-

corruption”



The Philippine

Quality Award




"   Highest level of national recognition for exemplary organizational performance

"   A global competitiveness template for private and public organizations in the country

"   A Roadmap towards Global Competitiveness for Key Sectors (Agriculture, Industry/ Services, Public Sector)

"   Established by Executive Order No. 448 in October 1997

"   Institutionalized through the signing of RA No. 9013 on February 28, 2001, otherwise known as the PQA Act



"   Recognize excellent organizations "   Identify role models

"   Private sector – manufacturing, service, SME, and agricultural producers

"   Public sector – national line agencies, local government units, and government corporations

"   Disseminate best practices to improve overall quality and competitiveness of Philippine organizations




1. Private Organization

(Small/Medium/Large Enterprise):

Manufacturing, Agriculture, Service, Other Industry

2. Public Organization National Line Agencies Government-Owned and Controlled Corps Local Government Units State Universities and Colleges Other Gov’t Agencies



"   60 award recognitions (10 recipients from the government)

"   117 PQA applications

"   83 from private sector "   34 from public sector

"   Over 100 PQA Assessors calibrated (2-day annual training) and served

"   At least 600 prospective assessors trained (3-4 days basic training)

"   Widespread participation ----------------------------- * As of 2013




THE AWARD PROCESS

ELIGIBILITY DETERMINATION

APPLICATION REVIEW

Stage 1: Administrators Review Application

Stage 2: Independent Review

ANNOUNCEMENT AND CONFERMENT

SHARING OF INFORMATION

Stage 3: Consensus Review

Stage 4: Site Visit Review

Stage 5: Judges’ Final Review



Category Point Values

1 Leadership 120 2 Strategic Planning 85 3 Customer and Public Focus 85 4 Measurement, Analysis & KM 90 5 Human Resource Focus 85 6 Operations Focus 85 7 Organizational Results 450




PQA Recognition Categories

"   Recognition for Commitment to Quality

"   Recognition for Proficiency in Quality Management

"   Recognition for Mastery in Quality Management

"   PQA for Performance Excellence



SYSTEMATIC APPROACHES

EVALUATION & IMPROVEMENT

DEPLOYMENT

STRATEGIC OBJECTIVES

MEASURES OF PERFORMANCE

RESULTS MEET BUSINESS PLAN

COMPARISONS & BENCHMARKS

FAVORABLE TRENDS




PQA KEY PLAYERS AND INSTITUTIONAL SETUP

Judges ◆ Assessors

PATRON

AWARD MANAGER

PQA COMMITTEE

IMPLEMENTING AGENCY

AWARD ADMINISTRATORS

BOARD OF JUDGES & TEAM OF ASSESSORS

• Public Sector To be appointed • Private Sector by the President

• CHAIR: DTI Secretary • VICE CHAIRS: - DAP President - Head of a National Movement (Public Sector) for Quality and Productivity

(Private Sector)

• MEMBERS: Highest ranking officer of the following:

DBM NWPC TESDA CIC CSC 6 Private Sector Reps

CENTER FOR INDUSTRIAL COMPETITIVENESS (CIC)

DTI SECRETARY

PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES

Organized by the PQA Committee MANAGEMENT COMMITTEE

PQA Criteria for Performance Excellence in Government




Basis for the Criteria "   The PQA Criteria for the Government are adapted from

the Business Criteria of the PQA.

"   The PQA (Business) Criteria, in general, are adapted from the Malcolm Baldrige National Quality Award (MBNQA) criteria of the United States.

"   The national awards program of other countries like the Australian Quality Award, Japan National Award , Singapore Quality Award, Prime Minister’s Award in Malaysia, have all adapted the Baldrige criteria for international comparability.



"  To provide guidance to the Public Sector organizations to deliver ever-improving value to customers and to the public while maximizing the overall organizational performance and capabilities.

"  The Criteria are the basis for conducting

organizational self-assessments, for making Awards, and for giving feedback to applicants.

PQA Criteria for the Government




Our Desired Quality of Public Services

One Government

Connected Government

Accessible Services

Smart Regulations

Clean and Green

Collaborative (PPP)

Citizen Focused



The Desired Situation . . .




Key Characteristics of the Criteria

1.  The Criteria focus on results. 2.  The Criteria are non-prescriptive and adaptable. 3.  The Criteria support a system perspective to

maintaining organization-wide goal alignment. 4.  The Criteria support goal-based diagnosis.



ORGANIZATIONAL CONTEXT: Environment, Relationships, and Challenges

4 Measurement, Analysis, and Knowledge Management

PQA Criteria for Performance Excellence in Government: A Systems Perspective

3 Customer and Citizen Focus

1 Leadership

2 Strategic Planning

5 Human Resource

Focus

6 Operations

Focus

7 Results




ISO 9001 Quality Management Principles 1.  Customer Focus

2.  Leadership

3.  Involvement of People

4.  Process Approach

5.  Systems Approach to Management

6.  Continual Improvement

7.  Factual Approach to Decision Making

8.  Mutually Beneficial Supplier Relationships

PQA Core Values and Concepts 1.  Citizen-driven Excellence

2.  Visionary Leadership

3.  Valuing Workforce and Partners

4.  Managing for Innovation

5.  Systems Perspectives

6.  Focus on Results and Creating Value

7.  Management by Fact

8.  Organizational and Personal Learning

9.  Agility

10. Focus on the Future

11. Social Responsibility



Changes on the Core Values and Concepts:

Business Criteria Public Sector Criteria - Integrity

Public sector organizations must operate within the bounds of trust and confidence of its customers and the general public. This includes a systematic approach to minimizing, if not eliminating, the sources and opportunities for corruption.




Business Criteria Public Sector Criteria - Accountability

A culture of responsible stewardship for public resources may be built by leaders who serve as role models of your organizational values, and who encourage the practice of these values throughout your organization. This may be further supported by clear policies and guidelines, effective service execution, monitoring and control built into work processes and systems, systems audits, and being transparent and accountable for the public funds used for operations.

Changes on Core Values and Concepts:



Category Point Values

1 Leadership 120 2 Strategic Planning 85 3 Customer and Public Focus 85 4 Measurement, Analysis & KM 90 5 Human Resource Focus 85 6 Operations Focus 85 7 Organizational Results 450




Business Excellence. . . ü Holistic approach to strengthen management

systems and processes for superior organizational results



Performance Excellence . . . An integrated approach to organizational performance management that results in: "   Delivery of ever-improving value to customers,

clients and constituents, and stakeholders, etc. "   Improvement of overall organizational

effectiveness and capabilities "   Organizational and personal learning.




Organizational/Business Excellence “Excellence” in stakeholder-related

performance results

Key Stakeholders

Clients

Employees

Government

Citizens

Suppliers

Partners

End Users

Pressure Groups



Excellence in Leadership





Excellence in Customer




Excellence in Planning





Excellence in Process


Can you deliver 99.99966%

Perfect Quality?



Excellence in People





Excellence in Information and Knowledge

Data Customer data is gathered and recorded

Information Customer data is organized to place in the context of the organization and to make it relevant for its requirements

Knowledge Organizational experiences and values are applied to make sense of the information The organization interacts and reflects on the information to transform it into knowledge




PQA Video




Award Criteria Organization

7 Categories 17 Items

35 Areas to Address 81 Sub-Areas

ITEM 1.1 Senior Leadership

ITEM 1.2 Governance & Social Responsibilities

CATEGORY 1 Leadership

AREA TO ADDRESS 1.2a Organizational Governance

AREA TO ADDRESS 1.2b Legal & Ethical Behavior

AREA TO ADDRESS 1.1a Vision, values, & mission

AREA TO ADDRESS 1.1b Communication & Organizational

Performance

SUB-AREA (1)

SUB-AREA (2)

AREA TO ADDRESS 1.2c Social Responsibilities &

Support of Key Communities



Reporting Business Results




68

Performance Excellence

TQM

Management Quality Performance

Improvement

ISO 9004

Process Quality

ISO Management

Systems

PQA

0

Building on ISO 9001 QMS Towards Performance Excellence

Identifies the key processes that drive an organization. Asks to describe these processes and

provide documentation of their effectiveness

Tests applied to each process in order to determine the extent to

which the fundamentals of process management are practiced within

the organization

2-part process evaluation system assesses the effectiveness of processes against the principles of process management

Criteria Scoring Dimensions

As contained in the PQA Guidelines, the 12 processes identify “what” needs to be done and “how” it will be done. The four Scoring Dimensions in the Scoring Guidelines define “how

effectively” they have been implemented (maturity).


What makes a “good” process? "   The process is defined, documented, and

operated methodically

"   If key participants of the process were to leave the organization, the process could be readily continued by others

"   Tools, methods and techniques used in the process are the right ones

What makes a “good” process? "   The process is being used everywhere in the

organization that it should be

"   The process has been methodically improved over time

"   The process is accomplishing the things it’s supposed to as defined by the customers of the process


What makes a “good” process?

"   The process is appropriately linked to other key processes and generally aligned toward the common goals of the organization

Dimensions for Evaluating Processes "  Approach (A)

" Systematic " Appropriate to the organization

"  Deployment (D) " Approach is implemented in all appropriate

work units, products, services, facilities


Dimensions for Evaluating Processes "  Learning (L)

" Evidence of cycles of fact-based evaluation and improvement and breakthrough innovation

" Sharing of refinements and innovations across the organization

"   Integration (I) " Approach aligned with key factors such as

organizational environment and challenges " Processes complement other processes

Assessing process quality

Early Efforts Developing Mature

The approach is not repeatable nor is it based

on reliable data and information

(i.e., not systematic).

Evidence of systematic approaches

responsive to basic business

needs.

The approach is systematic; it has the

opportunity for evaluation,

improvement, and learning built-in; and is integrated with other

work units and processes.

Approach refers to the methods, techniques, or processes used by an organization to address its needs, goals, and challenges.

Approach Continuum




Not all work units use the

approach or use it consistently. This hinders progress on

goals.

All appropriate work units use the approach, although some

work units are in early stages of

use.

All work units that need to use

the approach use it and use it consistently.

Deployment is evaluated on the basis of the breadth (i.e., across the organization) and depth (i.e., levels) of application of the approach to

relevant work units throughout the organization.

Deployment Continuum



Reacts to problems

Beginning of a systematic

approach to the evaluation and improvement of key processes

Innovations, best practices, and learning

discovered in one process are used to

improve other processes. Learning is a regular part

of the daily work.

Organizational learning includes both continuous improvement of existing approaches and significant change leading to new goals and/or

approaches.

Learning Continuum




Functional units operate

independently

Early stages of alignment with

basic organization needs, objectives

and other processes

Full alignment to organizational needs,

objectives and integration to other

processes

Integration is evaluated in terms of the alignment of approach to organizational vision, mission and key objectives as well as its linkages

and compatibility with complementary processes.

Integration Continuum


Processes "   Approach

"   Systematic "   Appropriate

"   Deployment "   Extent

"   Learning "   Fact-based

improvement "   Integration & alignment

Results "   Linkage with Key

Factors

"   Levels

"   Trends

"   Comparisons 100 %

0 %

Criteria for Performance Excellence

Scoring Guidelines



Identifies the big outcome measures for evaluating the process performance

Tests applied to each result that ensure the right results are measured and that the

overall performance is evaluated

… also assesses the effectiveness of key processes in producing concrete results

Criteria Scoring Dimensions

Assessing process results

Process Outputs and Outcomes

-  Factors used to evaluate are:

-  Linkage with key result areas

-  Levels of performance

-  Trends

-  Comparisons



7.5 Economical: Financial, Sectoral & Societal Outcomes

7.2 Effectiveness: Customer-Focused

Outcomes

7.3 Social: Human Resource-

Focused Outcomes

7.4 Ethical: Leadership & Governance Outcomes

7.1 Efficiency: Product & Process

Outcomes


What makes a “good” result? "   The result provides insight about something

that is important to the organization*

"   The way that the result is defined and presented makes sense, and makes it easy for those who use it to understand

* The set of results/measures used by the organization should cover all important drivers of organizational performance



What makes a “good” result? "   Accurately shows the organizations performance

towards the achievement of goals and targets "   Shows performance over time

"   Is able to “locate” the organization relative to key competitors, industry and world-class comparators

* The set of results/measures used by the organization should cover all important drivers of organizational performance


Dimensions for Evaluating Results "   Linkages (Li)

" Results linked to Key Factors, Result Areas, Process items "   Levels (Le)

" Performance versus targets / goals / strategic objectives "   Trends (T)

" Rate (slope of trend data) and breadth (how widely deployed and shared)

" Performance over time "   Comparisons and Benchmarks (C)

" Performance versus industry, key competitors, or best-in-class organizations?

" Performance versus others



A.  Level of Performance (Le): Comparing actual performance against targets/goals/strategic objectives

1.  Met performance expectations

a.  Analyze the strength b.  Do potential problem analysis (PPA) c.  Formulate preventive action plan

2.  Failed to meet expectations a.  Define the performance gap b.  Conduct root cause analysis (RCA) c.  Formulate corrective action plan

B.  Performance Trend (T): Rate (slope of trend data) and breadth (how widely deployed and shared); performance over time

ü  Conduct Root Cause Analysis ü  Formulate Corrective Action Plan

Time Established Performance

Gradual change, deteriorating performance over time

Time Established Performance

Sudden change, catastrophic change from standard


TimeExpected Performance

Start-up, gap between expected and actual performance:

Actual Performance

TimeEstablished Performance

Recurring change, comes and goes with unknown causes:

ü Conduct Root Cause Analysis ü Formulate Corrective Action Plan

TimeEstablished Performance

Positive change:

Sometimes we experience positive changes that need to be investigated so that actual performance may still be improved.

ü  Conduct Potential Problem Analysis ü  Formulate Preventive Action Plan


C. Performance Linkages (Li): Results linked to key organizational factors, result areas and processes

Process Output Capability Outcome Benefit

Examples: •  New facilities •  Trained staff •  Partnerships

forged

Examples: •  Satisfied clients •  Increased staff

efficiency •  Broader needs

served

Examples: •  Increased

trade •  Reduced client

waiting time •  Increased

employment

Examples: •  More clients

served •  Staff are

performing better

•  New resources available

C. Performance Linkages (Li): Results linked to key organizational factors, result areas and processes

Process Output Capability Outcome Benefit

ü Conduct stakeholder analysis ü Formulate benefits realization plan


What you may look for in analyzing process outcomes •  How did the results come about?

ü Are the outcomes systematic, well-deployed, and continuously improving processes?

•  How did the results change with time? ü Are they getting better?


What you may look for in analyzing process outcomes •  Are the results likely to be sustained?

ü Are the improvements one-time outcomes, or will they likely to continue?

•  How did the results compare with other organizations? ü Will other organizations look up to this process as a role

model?



" Directly supports the organization’s values and strategic objectives

" Deployed through all appropriate work units, products, services, customers and suppliers

" Best practice in industry/world or mature process that has gone through at several improvement cycles

" Creates and sustains clear competitive advantage

" Innovative

" Prevention-based

" Lack of a response to a Criteria requirement " An approach which is not systematic, integrated, or

consistently applied " An approach which is not fully deployed " No or little evidence of fact-based improvement " Improvement trends not evident in results " Lack of benchmarks and/or competitive comparisons

SEC-ISM Overview of the PQA - WordPress.com Business Criteria of the PQA. " The PQA (Business)...

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