Measuring the Quality Standards of your Chamber Eurochambres

Measuring the Quality Standards of your Chamber Eurochambres Academy Sigtuna Stockholm, Sweden 4 July 2002

Presenting EFQM Introductions l Background of Participants l Expectations of Course l EFQM Overview l What is Quality? l • Different Methods • Using an Excellence Model Coffee Break l Self-Assessment l Case Study: Chamber of Commerce in Nice l Follow-up & Questions l

Introductions l Melissa Rancourt, EFQM MBA - Entrepreneurship Industrial Engineering Operations Management Public Sector and Non-Profit Organisations

Our Group l Represented by 9 Chambers Santiago Bradford Austria Tampere Yugoslav Costa Rica Mexico City Stockholm Sheffield

Expectations l l l l Dealing with the challenge of culture How do I ensure buy-in from all staff? Ensuring sufficient time and resources commitment from within the organisation Dealing with confusion of a multitude of standards How do I network with others on this topic? What are my resources? How do I measure intellectual work? What are everyone’s experiences with measurement? What are other Chambers doing to follow a quality framework?

EFQM Described EFQM, a not-for-profit membership foundation, - is the creator of the EFQM Excellence Model, - manages the European Quality Awards, and - is a resource to European organisations on business and continuous improvement disciplines, tools and techniques.

The Origins of EFQM Located in Brussels, Belgium l Founded in 1989 by 14 leading European organisations : l BT plc KLM - Royal Dutch Airlines Robert Bosch Gmb. H Nestlé AG Bull SA Philips Electronics NV Ciba-Geigy AG Ing. C. Olivetti & C. S. p. A. Dassault Aviation Renault AB Electrolux Gebr. Sulzer AG Fiat Auto Spa Volkswagen AG

Vision and Mission Vision: A world in which organisations in Europe excel Mission: To be the driving force for sustainable excellence in organisations in Europe

The Quality Game Define Quality Name that Tool Acronym Craze Company Match Buzz Words 1 1 1 2 2 2 3 3 3

For 1 point! l Name 3 words that come to mind when you hear the word QUALITY. Answer: Excellence Speed Customer Service Management People Customer Product Appearance Service Satisfaction TQM Results Performance Cost Efficiency Mission Strategy Recognition

For 1 point! l A picture of squares, triangles, and other shapes that demonstrate the steps of an activity. Answer: FLOWCHART

For 1 point! l What does TQM stand for? Answer: Total Quality Management

For 1 point! l When I think of Quality and FOOD, this company comes to mind. . . Answer: Restaurant, Brand, Specific Product, Supermarket, . . .

For 1 point! l Describe BENCHMARKING. Answer: A systematic and continuous measurement process; a process of continuously comparing and measuring an organisation's business processes against business leaders anywhere in the world to gain information which will help the organisation take action to improve its performance.

For 2 points! l What would be your FIRST step to implementing a Quality programme in your Chambers? Answer: Define the goal. Review the business strategy. Define the key stakeholders.

For 2 points! l I would like to get a list of ideas from a group of people. What is one way to organise this? Answer: BRAINSTORMING

For 2 points! l What does ISO stand for? Answer: International Organization for Standardization

For 2 points! l When I think of Quality and TRAVEL, this company comes to mind: Answer: Airlines, Travel Agencies, Trains, Local, National, International, . . .

For 2 points! l Describe BALANCED SCORECARD. Answer: A set of vital measures or key figures giving information on the performance and the achieving of targets of the whole business operation of a company. The long-term set of measures chosen reflects all areas where the organization has set strategic targets, such as customer satisfaction, financial returns, shareholder value, quality, operational excellence, innovation potential, people satisfaction, public image, etc.

For 3 points! l Complete this sentence…. Excellence is: Answer: - achieving results that delight all the stakeholders. - creating sustainable customer value. - visionary and inspirational leadership. - managing the organisation through a set of systems, processes, and facts. - maximising the contribution of employees through their development and involvement.

For 3 points! l I need to measure an activity and would like to make sure that the process stays within certain limits. How can I show this? Answer: CONTROL CHART

For 3 points! l What does CSR stand for? Answer: Corporate Social Responsibility

For 3 points! l When I think of Quality and SERVICE, this company comes to mind: Answer: Work-related, Life-related, Products, Chains, Size, . . .

For 3 points! l Describe KNOWLEDGE MANAGEMENT. Answer: Knowledge management is the systematic process of identifying, capturing, and transferring information and knowledge people can use to create, compete, and improve.

Business Imperatives l In our world today, we need to. . . • Define a new approach to strategy and planning • Become innovative, fast, flexible. • Manage, create, and share knowledge. • Align and engage people more effectively. • Develop better leaders. • Understand the drivers behind business results.

Another Framework The EFQM Excellence Model is a good practice management framework. This framework is built on a set of underlying values and a belief system about the purpose, position and impact of organisations. The EFQM Excellence Model is a registered trademark of EFQM

Excellence Model l Based on these Fundamental Concepts: • Customer focus • Partnership Development • People development and involvement • Management by Processes and facts • Continuous learning, innovation and improvement • Leadership and constancy of purpose • Corporate social responsibility • Results orientation

Excellence Model l Why do companies use this Model? • To give a realistic view of how good they are. • To identify where to focus improvement effort • To bring initiatives together into a single framework • To encourage the sharing of internal and external good practice • To understand the drivers behind business results • To provide a common language • To create a balance between different stakeholder groups

Who is using the Model? l l l More than 20, 000 organisations across Europe 60% of Europe’s largest 25 companies 9 of the 13 European companies in the FT’s 50 World’s Most Respected Companies in 2001 More than 10, 000 SMEs 20 out of the 50 Eurostock companies The EFQM Excellence Model is a registered trademark of EFQM

Who is using the Model? l More than 18 different Excellence-related Awards throughout Europe • • • • • European Quality Award Austrian Quality Award Belgian Quality Award Danish Quality Award Irish Business Excellence Awards Finnish Quality Award French Quality Award Ludwig Erhard Award Italian Quality Award INK Prize (based on Model) Northern Ireland Quality Award Norwegian Quality Award Excellence Award, Portugal The EFQM Excellence Model is a registered trademark of EFQM Scottish Award for Business Excellence Swedish Quality Award Esprix Swiss Quality Award for Business Excellence UK Business Excellence Award National Quality Award Turkey Wales Quality Award

The Impact of Excellence l Does Quality impact the Bottom-Line? Percent Change • Study shows that stock prices of award winners increased by an average of 114% over a five-year period • Winners improved sales by 69%, total assets by 79% • Award winners outperformed their benchmarks on income by 56% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 91% Award Winners 69% Benchmark Firms 43% 32% 9% 8% 1% Operating Income Sales Source: Vinod Singhal, “TQM Boosts the bottom line”, April 2002 Return on Sales 6% Return on Assets

Coffee Break

Self-Assessment l l A comprehensive, systematic and regular review by the organisation of its activities and results referenced against a model of Excellence. Allows an organisation to discern clearly its strengths and areas in which improvements can be made and results in planned improvement actions that are then monitored for progress. The EFQM Excellence Model is a registered trademark of EFQM

Self-Assessment Process l Step 1: Develop and Retain Commitment. • The success and sustainability of your Self. Assessment process depends upon the active ownership by your Senior Managers. • Senior managers will buy into this if… § they understand how it adds value to the business § it meets some of their needs to improve or change the business § it offers the opportunity for public or peer recognition.

Self-Assessment Process l Step 1: Develop and Retain Commitment. How do you create commitment and buy-in in your Chamber?

Self-Assessment Process l Step 2: Develop and Deploy a Communication Strategy. • What messages do you need to communicate? • Why do you need to communicate? • Who do you communicate to? • Who should communicate? • How? • When? • Where?

Self-Assessment Process l Step 3: Plan your Self-Assessment. • Consider: Benefits & Outcomes, Resources, Maturity, Culture • Choose your technique. § Questionnaire § Assessment Workshop § Pro-Forma § Award Simulation § Combination

Self-Assessment Process l Step 4: Define the roles of individuals. • Sponsors • Project Manager • Staff • Experts • Assessors • Data Gatherers • Report Writers • Facilitator Who do you involve?

Self-Assessment Process l l l Step 5: Conduct the Self-Assessment. Step 6: Consider outcomes and prioritise. Step 7: Establish and implement action plans. What process do you use for implementing a quality programme?

Case Study l Chamber of Commerce of Industry Nice Côte d’Azur • Democratic institution § Managed by an Assembly of 52 members § Elected from 54, 000 commercial, industrial and service providers • Public Establishment § Under Authority of 3 Ministries: Finance & Industry, Transport, National Educational • Service Providing Enterprise § Coaching of Enterprises § University and Professional Education § Management of two airports, four ports

Case Study l Chamber of Commerce of Industry Nice Côte d’Azur • 27 Locations through the Apes-Maritimes with headquarters in Nice • 1015 Employees § 39% executives § 36% supervisors § 25% other employees

CCI Nice l Vision § We would like to be the most performing in the public sector in Europe in serving local economical development. l Mission § We have six principal missions § Representation of local enterprises § Observation and presentation of economical information § Economical coordination § Coaching and consulting to enterprises in the management of their transformation § Basic, higher and continued education § Management and development of equipment of infrastructures

CCI Nice l Strategic Objectives • Continue the implement of services for enterprices based on a politic of proximity and territory • Contribute to the set-up of enterprises in selection of projects and by research for investors • Consolidate and develop our activities within professional education • Town and country planning -- intensify our actions to promote an entrepreneurial Côte d’Azur • Continuous improvement of our Total Quality Management

Leadership l CCI Nice • Yearly Action Plan for the excellence approach with yearly objectives • Leader participation in 400 department, regional, national, international organisations • Close to 100% of our leaders has daily involvement with customers, partners and the society by meetings and working groups • Organisational and Productivity Audits are done to measure productivity and ensure objectives are achieved.

Leadership l Questions • What is the Leadership style within the organisation? • What are the priorities that Leaders consistently pay attention to? • How do Leaders work in partnership with Key Stakeholders?

People l CCI Nice • Better formalisation of the measurement and review of HR approaches. • Goal to define an approach to encourage suggestions and innovations by employees • Annual people satisfaction survey is reviewed every year • ISO Certification of the present management of competencies • Establishment of an approach of Center of Responsibilities (CR).

People l Questions • How do you identify and develop the skills of your employees? • What opportunities are provided to enable employees to participate in improvement activities? • What policies exist to motivate and recognise employees?

Policy & Strategy l Questions • What information do you collect and use to define your market? • What are the key strategic goals of the organisation? • Describe your planning process.

Partnerships/Resources l Questions • Who are your key partners? • How does the organisation manage technology in support of the strategy? • How is information and knowledge collected and managed within the organisation?

Process l Questions • What are your key business processes? • How are products and services produced and delivered to the customer? • How do customers gain access to your organisation?