Overview Of 14 Excellence Frameworks And Tools

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Overview of 14 Excellence Frameworksand ToolsBackground Research for the ACELG‘Review of Excellence Frameworksin Local Government’ Project.November 2010

An Overview of 14 Excellence Frameworks and ToolsNovember 2010DisclaimerThis report is not a comprehensive list of all the frameworks that are available and no endorsementof any of the frameworks is implied. As only summary material is provided in this report, councilswill need to make their own assessment of the frameworks that are appropriate to their situation.AcknowledgementsThis report was researched and written by Stefanie Pillora and Sarah Artist from the UTS Centre forLocal Government, with input and advice from the following people:Peter Gesling, General Manager, Port Stephens CouncilThe Local Government Business Excellence Network (LGBEN)The Australian Chief Officer’s GroupCustodians of several of the frameworks covered in this report provided additional information forinclusion in the review.Information was also drawn from the report, Sustainability Tools Selector, A Guide for LocalGovernment prepared for the Urban Sustainability Support Alliance by the Institute for SustainableFutures, University of Technology, Sydney.Australian Centre of Excellence for Local GovernmentPO Box 123 Broadway NSW 2007Tel: 61 2 9514 3855acelg@acelg.org.auwww.acelg.org.au2Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 2010SECTION A: INTRODUCTION . 4SECTION B: INTERNATIONAL EXCELLENCE FRAMEWORKS . 71. BALDRIGE NATIONAL QUALITY PROGRAM . 82. EFQM ‐ EUROPEAN FOUNDATION FOR QUALITY MANAGEMENT . 103. BUSINESS EXCELLENCE FRAMEWORK (BEF). 12SECTION C: OTHER IMPROVEMENT FRAMEWORKS & METHODS .144. BALANCED SCORECARD . 155. INVESTORS IN PEOPLE . 176. SIX SIGMA AND LEAN SIX SIGMA . 197. HUMAN SYNERGISTICS . 218. RESULTS BASED ACCOUNTABILITY FRAMEWORK . 239. GLOBAL REPORTING INITIATIVE . 25SECTION D: IMPROVEMENT PROGRAMS DEVELOPED FOR LOCAL GOVERNMENT .2710. NSW PROMOTING BETTER PRACTICE PROGRAM . 2811. BEST VALUE REVIEWS . 3012. LG IMPROVEMENT AND DEVELOPMENT: PEER REVIEW PROGRAM . 3213. EXECUTIVE‐ ON‐ LOAN PROGRAM . 3414. 50:50 VISION ‐ COUNCILS FOR GENDER EQUITY PROGRAM . 36CONCLUDING COMMENTS .38REFERENCES .39FURTHER READING .403Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 2010Section A: IntroductionI.PurposeThis working paper describes the features of a range of frameworks designed to promote excellenceand continuous improvement in Australian local government.The purpose of this research, as a component of the ACELG Review of Excellence Frameworks inLocal Government project, is to provide an overview of improvement frameworks that are currentlyavailable to councils and to assist councils better understand their purpose, features and potentialusefulness.This research will also assist ACELG in informing the future development of a local governmentexcellence framework.II.Basis for inclusion of frameworks and toolsThe frameworks included in this paper were identified through consultation with the LocalGovernment Business Excellence Network (LGBEN), with local government representative bodiesand with individual councils that have considerable experience with one or more of the frameworks.Frameworks included in this report either aim to cover all aspects of an organisation from planningthrough to reporting, or to assist with a particular aspect of organisational improvement, ‐ forexample strategic planning, staff development or corporate reporting. An important consideration inwhether to include a framework was whether it is supported by an organisation that can provideadditional resources, support, training and assessment services and ensure the framework is kept upto date.This report does not include an exhaustive list of all the frameworks available, and no endorsementis intended to be implied. However it is true to say that all of the frameworks included in this reportare currently being used in the local government context.III.Local government contextIn deciding which frameworks to adopt (or how to adapt an existing framework) it is acknowledgedthat councils need to take into account relevant state government legislative requirements andguidelines, for example Best Value principles outlined in the Victorian Local Government Act and theIntegrated Planning and Reporting framework requirements in the NSW Local Government Act.It is also acknowledged that due to variations in their size and operating budgets, some councils areconstrained in their ability to pay for commercial products and external consultants. This does notmean however that they are not committed to putting into practice the principles of organisationexcellence and continuous improvement in their organisations. A number of councils advise thatthey draw on material from a range of sources, including the frameworks and methods cited in thisreport, in the ongoing development of their own management systems.4Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 2010Many councils are also interested in ensuring that the frameworks they adopt are suited to publicsector agencies and fit with the notion of public value. References which explore some of thequestions relating to public value are outlined in the last section, Further Reading.IV.Frameworks reviewed in this reportInternational Quality FrameworksoooUS Baldrige Excellence FrameworkEuropean Framework for Quality ManagementBusiness Excellence FrameworkOther Improvement Frameworks and MethodologiesooooooBalanced ScorecardSix Sigma / Lean Six SigmaInvestors in PeopleHuman SynergisticsResults‐based Accountability FrameworkGlobal Reporting InitiativeImprovement programs developed for local governmentoooooV.Better Practice Review Program (NSW)Best Value Frameworks (UK and Victoria)LG Improvement and Development Peer Review program (UK)Executives‐on‐loan program (US)50:50 Vision ‐ Councils for Gender Equity (Australia)Features of frameworks reviewedThis report has been compiled from a desktop review of information gained from each of theframework websites. In order to be useful and usable by local government organisations, theytend to combine a number if not all of the following features which have been described foreach of the frameworks in this report:1. Brief description ‐ an overview of the framework, including its purpose2. Framework, principles or criteria which describe the approach ‐ diagrams toillustrate the framework3. Theory and research underpinning the framework explained ‐ information on anyneeds analysis or research which informed the initial or ongoing development of theframework5Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 20104. Supporting materials ‐ such as manuals, guidelines, checklists or training programs5. Organisational support ‐ support offered by the owner of the framework, includingadvice, facilitation or dissemination of good practice6. An assessment process ‐ whether assessment criteria are used by internal and/orexternal agents resulting in an improvement program7. An awards process ‐ awards recognising industry leaders and significantimprovements8. Evaluation, and sharing results with other organisations ‐ whether there is a processof continual improvement of the tool itself, and also whether the sharing of resultsand good practice are facilitated between framework users9. Tailored to the local government context – some of the frameworks have eitherbeen designed or tailored specifically for use in the local government context, andcouncils known to have used the framework are also referencedFuture iterations of this report will aim to add any additional information which has not beenavailable at the time of writing.VI.ISO 9001 standards and relationship to excellence frameworks.ISO 9001 is a series of five international standards published in 1987 by the InternationalOrganization for Standardization (ISO), Geneva, Switzerland. Companies can use the standards tohelp determine what is needed to maintain an efficient quality conformance system. For example,the standards describe the need for an effective quality system, for ensuring that measuring andtesting equipment is calibrated regularly and for maintaining an adequate record‐keeping system.ISO 9001 registration determines whether a company complies with its own quality system.Over the last two decades there has been a steady increase in the number of countries that haveadopted ISO 9001 as their national quality standard, as well as a continual increase in the number ofcompanies who certify to the standard.ISO standards and associated guidance documents have several Australian distributors including SAIGlobal (www.saiglobal.com, NCS International (www.ncsi.com.au) and BSI Australia(www.bsigroup.com.au) all who offer training and accreditation. The organisation JAS‐ANZ(www.jas‐anz.com.au) gives accreditation to certifying bodies and maintains a register of accreditedassessment bodies.In a report on a study undertaken by Monash University in Victoria and supported by JAS‐ANZ(Monash University, 2006), it is noted that due to a range of factors, including the strong influence ofexternally oriented motivations in the pursuit of ISO 9001 certification and the ‘stand alone’ ratherthan integrated approach taken to quality management, many companies have not gone beyond aminimalist approach to ISO 9001 implementation.6Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 2010The frameworks and programs covered in this report, with their emphasis on the continuousimprovement of all aspects of the organisation, complement the compliance focus of the ISOstandards.vii.Software tools that support excellence frameworksA range of software packages and other technical tools are available to assist councils with theimplementation of excellence frameworks. Some of the software packages are tailored to specificframeworks while others are more generic. While detailed coverage of these products is beyond thescope of this report, several of the generic products used by Australian councils are listed below.Performance Planning software ‐ a purpose built solution to document, manage and report on allaspects of strategic and operational planning, including risk and sustainability issues.’ SeeTechnologyOne homepage, www.TechnologyOne.com.auInterplan software ‐ ‘a single system for driving your organisation’s strategic, corporate, businessand service level planning with budgets and performance measures linked to your managementframework’. See CAM Management Solutions homepage, www.cammanagementsolutions.com.auHR Management, Business Plans and Governance Software – aimed at ‘aligning individualemployee effort to higher level Council outcomes with particular emphasis on Business Planning andGood Governance.’ See CAMBRON homepage, www.camron.com.auSection B: International Excellence FrameworksA brief overview is provided below of the three main excellence (or quality) models that are usedinternationally:1. US Baldrige Excellence Framework2. European Framework for Quality Management3. Business Excellence FrameworkThe custodians of these frameworks are members of the Global Excellence Model (GEM) Councilalong with Confederation of Indian Industry, Japanese Productivity Centre for Socio‐EconomicDevelopment, Fundibeq (Latin America) and Spring Singapore – all who host excellence/qualityawards. The GEM Council serves as ‘a global fraternity in the field of Excellence and exploresopportunities for new services and award k/Partnerships/GEM7Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 20101. BALDRIGE NATIONAL QUALITY PROGRAMFeaturesBrief description includingpurposeThe Baldrige National Quality Program, managed by The UnitedStates Commerce Department’s National Institute of Standardsand Technology (NIST) has the mission of ‘enhancing thecompetitiveness, quality, and productivity of U.S. organizationsfor the benefit of all U.S. residents.’ The program: Framework, principles or criteriaand whether expressed indiagrammatic formDevelops and disseminates evaluation criteriaManages the Malcolm Baldrige National Quality AwardPromotes performance excellenceProvides global leadership in the learning and sharing ofsuccessful strategies and performance practices,principles, and methodologiesThe Baldrige performance excellence criteria are a frameworkthat any organisation can use to improve overall performance.Seven categories make up the award criteria: Leadership Strategic planning Customer focus Measurement, analysis, and knowledge management Workforce focus Process management ResultsThe results category covers the organisation’s performance andimprovement in its key business areas and includes governanceand social responsibility and how the organisation performsrelative to competitors. See diagram below.Framework for performance excellence criteria8Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsTheory and researchunderpinning the frameworkexplainedSupporting materials such asmanuals, guidelines, checklists,and training provisionOrganisational support, egstaff/consultant advice andfacilitationAn assessment process involvinginternal and/or external agents,resulting in improvementprogramAn awards process whichrecognises industry leaders andsignificant improvementsEvaluation and/or process forcontinual improvement of theframework itself, and sharingresults with other organisationsTailored to the local governmentcontextNovember 2010Material not provided on the Baldrige homepage.Three versions of the Criteria for Performance Excellence –Business/Non profit, Education and Health Care, and a range ofself assessment resources and case studies are available on theBaldrige home page free of charge.Examiner ambassadors complement the efforts of Baldrige staffin conducting the award process. More than 550 industryexperts serve as Examiners every year.The program provides assessment tools to evaluateimprovement efforts and feedback reports from a team oftrained experts, highlighting organizational strengths andopportunities for improvement. Assessments are subsidised. Selfassessment tools are also provided.The Baldrige Award is given by the President of the UnitedStates to businesses—manufacturing and service, small andlarge—and to education, health care and non profitorganisations that apply and are judged to be outstanding in theseven categories listed above.The Baldrige website contains data on evaluation andinformation on new initiatives in response to evaluation andfeedback. Improvement suggestions are also invited.No information provided.Contact detailsBaldrige Customer Service:301‐975‐2036 TelephoneE‐mail baldrige@nist.govWebsite: www.nist.gov/baldrige9Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsNovember 20102. EFQM ‐ EUROPEAN FOUNDATION FOR QUALITY MANAGEMENTFeaturesBrief description includingpurposeEFQM is a not for profit membership foundation with the statedmission of ‘bringing together organisations striving forSustainable Excellence.’EFQM is the custodian of the EFQM Excellence model, describedby EFQM as a ‘a non‐prescriptive framework that can be used togain a holistic view of any organisation regardless of size, sectoror maturity and provides a framework for comparison with otherorganisations.’Founded in 1988, EFQM has 600 members comprising privateand public organisations from different sectors. EFQM claim thattheir framework is the most widely used organisationalframework in Europe and it is the basis for the majority ofnational and regional quality awards.Framework, principles or criteriaand whether expressed indiagrammatic formIt is based on nine criteria. Five of these are ‘Enablers’ and fourare ‘Results’. The ‘Enabler’ criteria cover what an organisationdoes. The ‘Results’ criteria cover what an organisation achievesand how. See diagram below.EEFEFQM ExcellenceEFTheory and researchunderpinning the tool explainedNo material provided on EFQM website10Australian Centre of Excellence in Local Government

An Overview of 14 Excellence Frameworks and ToolsSupporting materials such asmanuals, guidelines, checklists,and training provision.November 2010The EFQM Knowledge Base contains a range of tools, resources,reports, presentations, logos and cases studies for members.Some EFQM publications are also for sale to non‐members.EFQM Training Services include: Assessor Development Path Line Manager Development Path EFQM Ambassador Training Leadership Development Program.An assessment process involvinginternal and/or external agents,resulting in improvementprogramAn awards process whichrecognises industry leaders andsignificant improvementsOrganisational support, egstaff/consultant advice andfacilitationProcess for continualimprovement of the framework litself, and sharing results withother organisationsTailored to the local governmentcontextEFQM provides frameworks for different types of assessmentand assists organisations with internal and external assessmentsto identify areas for improvement.The EFQM Assessor Training course is provided for Assessors.The EFQM annual excellence award is a key feature of theprogram. Award winners since 1992 are listed on the EFQMwebsite.Services to support implementation include peer to peerexchange and benchmarking, Learning Visits and Communitiesof Practice.Services are provided by EFQM core staff in Brussels and aninternational network of trainers and consultants.The EFQM Excellence Model is regularly revised with the 2010version now being promoted. In a poll carried out by EFQM,97% of the users found the upgraded model useful and of value.The EFQM is widely adapted for use in different sectors indifferent countries, including public interest organisations. Awell documented example is the Singapore School ExcellenceModel (Ng

1. US Baldrige Excellence Framework 2. European Framework for Quality Management 3. Business Excellence Framework The custodians of these frameworks are members of the Global Excellence Model (GEM) Council along with Confederation of Indian Industry, Japanese Productivity Centre for Socio‐Economic

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