Principles of Business Excellence
These are the ‘rules of nature’ that define how and why enterprises work the way they do.
Whether or not you believe in them, the research strongly indicates that they apply all the time in every enterprise!
The better you align your enterprise systems, structure, products and approach with these principles, the more successful you will be in the long term.
The better you understand the principles, the better your decisions, eg about which strategies, which projects, which success criteria and which tools and methods.
1. Customers are the final arbiters of quality; understanding what they value guides successful strategy and action
2. Constant role modelling of business excellence principles by senior leaders helps create the environment for an enterprise and its people to reach their potential
3. The potential of an enterprise is realised through its people’s enthusiasm, resourcefulness and participation
4. Clear direction and mutually agreed plans, authority and responsibilities, enable enterprise alignment, and support individual confidence and productivity
5. To sustainably improve outcomes, the system as a whole must be improved
6. All systems and processes exhibit variability; effective management of this improves predictability and performance
7. Effective use of facts, data and knowledge leads to improved decisions
8. Continual improvement and innovation depend on continual learning
9. Enterprise sustainability is determined by its ability to create and deliver value for all of its stakeholders
The important difference between principles and practices
While practices can be situationally specific, principles are deep fundamental truths that have universal application.
A principle is a “governing law” which can be used as a basis for predicting and reasoning.
- • Principles always have natural consequences attached to them.
- • There are positive consequences when we act in harmony with the principles.
- • There are negative consequences if we ignore them.
- • Principles apply to everyone and every organisation whether or not people are aware of them.