Total business excellence – a new management model for operationalizing excellence

Abstract

Purpose – The purpose of this paper is to identify and address the underlying causes of costly quality/ethical problems that have prevented companies to achieve and sustain excellence. More broadly, the study has leveraged data from multiple sources to determine root-cause issues and propose a new management model that enables leadership to prevent and effectively address quality/ethical problems by operationalizing excellence. For the purpose of this research, operationalization is defined in terms of developing a sustained culture of excellence and enabling a firm to systematically prevent, detect, and address costly problems in their daily operations. Design/methodology/approach – The study has defined the concept of excellence in terms of measurable results based on ten critical success factors: products, financials, stakeholders, employees, leadership, societal, operational, innovation, alignment, and ethical excellence. To identify and address the underlying causes, this study has used a spiral research model to develop and improve an assessment process for the consistent examination of three types of firms: national quality award recipients, successful and responsible Fortune-500 companies, and landmark ethical violators. Findings from case studies were then substantiated using results from current research studies and conclusions from over 20 years of international field work/experience. Findings – To operationalize excellence, this study found that organizations need to develop a foundation for two tightly coupled and inseparable variables: ethics, excellence. Case studies show when these two variables are inadequately planned, integrated, checked, and enforced across business operations, they cause serious and costly problems. This foundation enables a firm to maximize performance, the return on investment, and to sustain performance in each of these critical success factors (CSFs) using the following interconnected building blocks of excellence: grander purpose, measurable results, effective collaboration, leadership development, individual development, continuous alignment, continuous innovation, ethics management, and ethics foundation. Research limitations/implications – The application of the assessment instrument proved to be complex due to the difficulties of transforming conjecture into certainty using existing online corporate records (e.g. understanding true leadership intention). Findings of this study are applicable to any industry and type and size company. The building blocks of this new management model should not be developed and implemented in an isolated, standalone, or piecemeal manner; nor should they be forced onto an organization as a new program. For best results, each building block needs to be implemented as an interconnected component of a complete and total system of management and infused into the fabric of the culture as a normal part of the daily operations. Originality/value – Total business excellence is a proposed new management model for operationalizing excellence. This new model serves three major purposes. First, it enables an enterprise to responsibly deliver a continuous flow of innovative and competitive products as defined and measured by ten CSFs. Second, it enables management to prevent costly quality/ethical problems by developing a unified and responsible strategy for planning, execution, and quality. Most importantly, it provides a missing platform of opportunity where individuals can incrementally grow and develop as they add meaningful personal, professional, and societal value.