A common question that many organizations have is related to the business benefits in terms of top-line, bottom-line or risk management and mitigation. Would an initiative on a path of Business Excellence be helpful?
A study conducted by the National University of Singapore in 2009 found that, over a four-year period, the productivity of leading business excellence organizations that have won the Singapore Quality Award (SQA), as measured by value-add per employee, was 35% higher than their industry counterparts. The positive impact on productivity was also established in an earlier 2008 study which found that the annual increase in value- add per employee of SQA winners was 33% higher than their industry counterparts.
Some excerpts from the report:
Other case studies and experiences shared by many award and prize winning organizations have highlighted the increase in cross-functional conversations within an organization as well as with the stakeholders such as suppliers, partners etc. have reduced many operational wastages and also helped accelerate innovative solutions for improvements and product breakthroughs.
The key to success of a Business Excellence program is a clear articulation of the commitment from the senior leadership team and they walking the talk and being role models.