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Guidelines for Implementing Innovation Excellence Framework in Universities
By
Dr. Mohd Rashid bin Ab Hamid
Universiti Malaysia Pahang (UMP)
Achieving Innovation Excellence Framewok through the Performance Measurement System
Historically, performance measurement has meant measuring
tangible
things … (such as return on investment (ROI), cash flow, increase in revenue and profit) In recent years, attention and focus have shifted toward measuring
intangibles
(such as quality, customer satisfaction, and safety) In light of this transition, researchers began investigating ways of incorporating both
financial and non financial performance
in an effort to achieve innovation well-being
The Value-Based Total Performance Excellence Model (VBTPEM)
•
VBTPEM provides a holistic and comprehensive framework to assess the performance of organisations measures that incorporates universal (corporate) – core values in the performance
• The guidelines are based on the Value based Total Performance Excellence framework that incorporates a well-defined set of organizational
core values
in each of the
performance criteria.
copyright ADMACS/IKIM
OUTLINES
1.
2.
3.
Why we need (core) values now?
Innovation Excellence Model – The Framework (IEF) i.
ii.
The Conceptual Framework - Causal Relationships SEM: Measurement & Structural Models iii.
PLS-based SEM An Illustration of IEF application - Data & Results
WHY WE NEED (CORE) VALUES NOW?
1.
element in Strategic Management System 2.
Rhetoric-Reality
actual behavior – confuse aspired behavior with 3.
organisations and Disclosures of malpractices in public organisations –
leading to the collapse of giant as reported by Auditor General Report
Values-related Crisis – P AST & C URRENT ‘Events’ •
Global Scenario The collapse of leading corporations (e.g.,
Enron 2001, Northern Rock 2007, Lehman Brothers 2008, Bernard Madoff
)
• Lack of financial accountability • Lack of transparency in corporate governance • Greed & Manipulation of Trust • • •
Public Organisations
In Audit General Report:
Dishonesty in spending/claims by public servants Corruption & Abuse of power by heads of departments Lack of urgency by public servants in making decision, resulting in delays in many service deliveries
These past & current ‘events’ – as strong reminders for organisations about the importance of ‘core values’ as the ‘guiding principles’
1.
The Challenges
To measure ‘subjective’ core values in most accurate manner – use indicators or proxies 2.
To ‘ operationalise ’ core values as the driving force in the pursuit of performance excellence make ‘visibility’ of values-related strategies and actions as a formal agenda 3. Existing BEMs such as Malcom Baldrige and EFQM do not address core values in explicit manner, i.e., do not use core values as an independent assessment dimension So we propose the Values-based Total Performance Excellence Model (VBTPEM) as a framework for values centric BEM by addressing core values explicitly in defining/formulating indicators for measuring relevant performance constructs/dimension/criteria.
The Value-Based Total Performance Excellence Model - Framework
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Examples of the (Core) Values from successful companies Core Values Statement
• • • • A belief in the important of people as individuals and people are treated with respect (e.g., Citibank) A belief that most members of the organisation should be innovators and a corresponding willingness to support failure (e.g., Hewlett Packard) A belief in the importance of the details of execution, the nuts and bolts of doing the job well ( e.g., Pepsi Cola) A belief in superior quality and service (e.g., Proctor & Gamble) • • • •
Core Values
Respect for People Innovation & Tolerance Meticulous / Thorough Quality
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Implementing Innovation Excellence Framework (IEF)
THE
BASELINE ASSESMENT
IEF USING To examine the extent to which core values are ‘visible’ and ‘internalised’ in organisations
VALUE-BASED INTERVENTION PROGRAM POST-EVALUATION
OF ORGANISATION PERFORMANCE EXCELLENCE THROUGH IEF To rectify, accommodate and Instill the missing core-values To assess the impact of The Value-Based Intervention Program
BASELINE ASSESSMENT & VALUE-BASED TRANSFORMATION
On-line Survey & Analysis using VBTPEM Automated System No
Enhance organisation-wide Core Values & organisational Best Practices
Are the Desired Results Met?
STRUCTURAL EQUATION MODELING: MEASUREMENT & STRUCTURAL MODELS
Truthfulness Trustworthiness Sincerity Commitment Sense of Direction Competency Rightness Wisdom Harmony Unifying Meaningfulness Good Intention Beneficial Openness Receptiveness Timeliness Quality Respectfulness Non-discriminatory Mutual Interest Responsiveness Sustainability Interdependence Opportunity-Sensing Comradeship Social Responsibility Consultation Caring Trust Respect Effectiveness Appropriateness Optimisation Efficiency Prudence Advancement Mutually Beneficial Universal Achievability Genuineness Ethical Value -Add Enterprising Competitiveness Fairness Consultation Mutual Trust Acknowledgment Altruism Empowerment Efficiency Collectiveness Non-exploitative Economy of Scale Frugality Timeliness Profitability/Cost Saving Regulatory/Shariah Compliance Market Value Stakeholder/Cust. Satisfaction Image/Reputation Loyalty/Retention
How do we Measure Values?
Rating Scale
0 1
Degree of ‘Visibility’ of Almost not Visible
2 3 4 Somewhat Visible 5 6 7 Fairly Visible 8 9 10 Most Visible
Example: To measure ‘Committed’ Leadership What’s your rating for the ‘commitment’ of leadership based on how visible (rarely/occasionally/ often) the leadership is seen with subordinates discussing and encouraging them to work towards achieving organizational goals
THE BENEFITS OF CREATING A VALUES-BASED WORKPLACE
• • • • • • Higher employee productivity, engagement and creativity Lower attrition rate Lower absenteeism and lower health-related expenses Better teamwork Loyal customers who are delighted by your energized employees Organisations can gain a reputation as great (most admired) places to work.
REFERENCES
•
BOOKS & MONOGRAPH
Mokhtar Abdullah, Nooreha Husain, Nik Mustapha Nik Hassan and Mazilan Musa (2003).
Value-Based Total Performance Excellence Model: Baseline Assessment Criteria Guidelines for Organisations
(IKIM), p. 92.
, Institute of Islamic Understanding Malaysia
• Mokhtar Abdullah, Nooreha Husain, Nik Mustapha Nik Hassan and Mazilan Musa (2003).
Essays on ISLAMIC MANAGEMENT & ORGANISATIONAL PERFORMANCE MEASUREMENTS
, Institute of Islamic Understanding Malaysia (IKIM), p. 165.
REFERENCES
JOURNALS 2012
1. Mokhtar Abdullah, Mohd Rashid Ab Hamid, Zainol Mustafa, Nur Riza Mohd Suradi, Fazli Idris, (2012). Value-based Total Performance Excellence Measurement (VBTPEM): A Conceptual Framework for Organisations,
Total Quality Management and Business Excellence
, DOI:10.1080/14783363.2011.637786 (ISI INDEXED ;IMPACT FACTOR 0.387) 2. Hamid, M. R. Ab. Mustafa Z., Idris F., Abdullah M., Suradi N. R. M. & Ismail W. R. (2012).
Value-Based Performance Excellence Measurement for Higher Education Institution: Instrument Validation, accepted for publication in
Quality & Quantity International Journal of Methodology
, (ISI INDEXED; IMPACT FACTOR 0.688)
Methodology
Interpretation of scale measurement (scale 0 to 10) Rating of ‘Visibility’ 6 0 1 Not Visible 2 3 4 Somewhat Visible 5 7 Visible 8 9 10 Most Visible Index Scoring & Grading
The scores for all the corresponding items in the questionnaires are then transformed into the Performance Index which has a scale of 0 to 100. This performance index can lead to organizations becoming focused on reaching a particular number, to the extent of specifying a precise numeric target for the organization to achieve. The four categories used to describe the levels of performance excellence are as shown:
Good Poor copyright ADMACS/IKIM
SCALE : 0 - 100
Excellence Moderate 81 61 41 0 – 100 – 80 – 60 – 40
Conclusion
IEF- A systematic way of identifying the strengths of the innovation capabilities in the universities and improvement opportunities while at the same time monitoring the progress of total performance