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GEMS: A NEW IDEA FOR QUALITY IMPROVEMENT
Prof. Gopal K Kanji Kanji Quality Culture Ltd., Sheffield Technology Parks, Arundel Street, Sheffield,
S1 2NS, England, UK; tel: +44 114 2212003, e-mail: [email protected] Keywords Global Excellence Measurement system (GEMS), Systems approach, Stakeholders, Critical success factors, Structure Equation Modelling,. Abstract Traditional Business Excellence approach in quality has been regarded increasingly as inward looking, inefficient and unable to drive appropriate actions for improvement in organisations, thus being of limited value for their stakeholders. The architecture of Business Excellence deals with a set of systems, stakeholders, critical success factors and structural equation modelling to create a holistic, reliable and comprehensive measurement model. Such architecture can be found in Global Excellence Measurement System (GEMS) The main advantage of Global Excellence Measurement System (GEMS) is in providing integration and alignment among the various business systems behaviours and measures. Such integration comes from two main features: its foundation on the systems behaviour which incorporates critical success factors of all the stakeholders, and the use of a sound structural equation modelling (SEM) approach. In this paper the author will first of all demonstrate the Architecture of Business Systems Behaviour of GEMS and then, with the help of empirical evidence from the public and service sectors, will display the integration and alignment among the various organisational behaviour systems and measures of quality for the improvement of the organisation.
GEMS: A NEW IDEA FOR GEMS: A NEW IDEA FOR QUALITY IMPROVEMENTQUALITY IMPROVEMENT
Prof. Gopal K KanjiProf. Gopal K KanjiKanji Quality Culture Ltd.Kanji Quality Culture Ltd.
Sheffield Technology Parks,Sheffield Technology Parks,Arundel Street, Sheffield,Arundel Street, Sheffield,
S1 2N SS1 2N SEE--mail: quality@gopalmail: [email protected]
Traditional Business Excellence (BE)Traditional Business Excellence (BE)BE has been regarded as:BE has been regarded as:
--inward lookinginward looking--inefficientinefficient--limited value for their stakeholderslimited value for their stakeholders
Modern BE must deal with:Modern BE must deal with:-- Organisational Behaviour SystemsOrganisational Behaviour Systems--Stakeholders NeedsStakeholders Needs--Critical Success Factors Critical Success Factors -- Holistic Measurement ModelHolistic Measurement Model
Business Systems BehaviourBusiness Systems BehaviourSuch an approach can be found in Global Such an approach can be found in Global Excellence Measurement System (GEMS)Excellence Measurement System (GEMS)
It is Holistic and based on critical It is Holistic and based on critical success factors for the Stakeholderssuccess factors for the Stakeholders
It is reliable & Valid and uses Business It is reliable & Valid and uses Business Systems BehaviourSystems Behaviour
It suggests improvement strategy and It suggests improvement strategy and improvement opportunitiesimprovement opportunities
Global Excellence Measurement Systems (GEMS)Global Excellence Measurement Systems (GEMS)
Structure Equation Modelling
GEMS
Systems
Approach
Stakeholders
Critical success
Factors
Why Systems Approach?Why Systems Approach?
--Organisations behave as organismsOrganisations behave as organisms--Made of highly interdependent factorsMade of highly interdependent factors--They must work together to achieve They must work together to achieve the organisations overall aimthe organisations overall aim--Deals with scientific methods i.e. Deals with scientific methods i.e. Hypothesize, Design a Control Hypothesize, Design a Control experiment, Collect data & Analyzeexperiment, Collect data & Analyze
For the ManagersFor the ManagersThis Means:This Means:
1) Define the organisation as business 1) Define the organisation as business systemssystems
2) Establish the Systems Objectives2) Establish the Systems Objectives3) Identify Systems Behaviour3) Identify Systems Behaviour4) Develop Measurement Systems4) Develop Measurement Systems5) Measure the active Systems Behaviour 5) Measure the active Systems Behaviour
and systems performance (business and systems performance (business excellence)excellence)
Description of a typical healthcare delivery systemDescription of a typical healthcare delivery system
Support Directorates
Key support processes and
key management processes
Technical skill Knowledge Interpersonal interaction
Hospital
Management Board / Group Business
Plangoals resources
Clinical Divisions…CD1 CD2 CD3
procedures policies and targets
HEALTHCARE BOARD
Values and guidelines Environmental
constraints
Funding Social policy issues
Patient with unmet need
Patient with need met or health condition improved
Healthier communities
System Assessment and Review
Fig.3: Stakeholders for health care System in a HospitalFig.3: Stakeholders for health care System in a Hospital
HEALTH CARE
STAKEHOLDER
SUPPLIERSEquipment
PharmaceuticalUniversities
INTERNALAdministrators
DoctorsNurses
PhysicianParamedicsOther Staff
REGULATORSGovernment
Health Authorities
Local AuthoritiesAccreditation Org. Financial Institute Etc.
CUSTOMERSPatient
FamiliesCommunitiesTax Payers
Insurance Co.GPs & others
GEMS Structural DiagramGEMS Structural Diagram
GEMS allows performance to be GEMS allows performance to be compared longitudinally over time and compared longitudinally over time and also against other competitors.also against other competitors.
It has a single number (Index) that It has a single number (Index) that reflects the organizationreflects the organization’’s performances performance
Critical Successes factors for both Critical Successes factors for both KBEM & KBS are given in the GEMS KBEM & KBS are given in the GEMS structural diagramstructural diagram
GEMS Structural DiagramGEMS Structural Diagram
Structural Equation Modelling (SEM)Structural Equation Modelling (SEM)
Is used to test the causal relationships Is used to test the causal relationships that form GEMSthat form GEMS
It combines the measurement model It combines the measurement model and the structural equation approach to and the structural equation approach to provide indices & statistical analysis.provide indices & statistical analysis.
It evaluates performance of the system It evaluates performance of the system to deliver meaningful results in terms of to deliver meaningful results in terms of causal relationships and structurecausal relationships and structure
Stakeholders Assessments (Pre)Stakeholders Assessments (Pre)
47.6
77.8
24.428.5
0
10
20
30
40
50
60
70
80
90
Staff Patients AccreditationBodies
GovernmentAuthorities
Index
%
Stakeholders Assessments (Post)Stakeholders Assessments (Post)85.6
67.5 67
28.524.4
77.8
47.6
62.8
0
10
20
30
40
50
60
70
80
90
Staff Patients AccreditationBodies
GovernmentAuthorities
Stakeholders
%
Pre Intervention
Post Intervention
Overall PerformanceOverall Performance
45.6
68.1
0
20
40
60
80
Pre Intervention Post Intervention
Index
%
ConclusionsConclusionsProvides a set of criteria for assessing Provides a set of criteria for assessing the organisationthe organisation’’s strengths and s strengths and weaknesses to focus on improvementweaknesses to focus on improvement
Suggests resource allocation and Suggests resource allocation and strategic planning to prosper even in a strategic planning to prosper even in a turbulent environmentturbulent environment
Gives a reliable and solid basis for Gives a reliable and solid basis for performance measurementperformance measurementIndicates Managerial AccountabilityIndicates Managerial Accountability