So, what are the benefits of Business Excellence? In this blog we show the key findings from research into the impact of Business Excellence in Australia and New Zealand.
  • Organisations that used the Australian Business Excellence Framework were asked why they used it. Of the 46 surveys that were completed, the most popular responses (in order of popularity) were:
    • It provides a rigorous and sensible approach for identifying strengths and opportunities.
    • To guide our organisation’s continuous improvement effort.
    • We needed a holistic business framework to coordinate a range of initiatives.

Figure 1 – The Australian Business Excellence Framework
Figure 2 – Reasons Why Organisations Use the Australian Business Excellence Framework.

Source: Saunders, M., Mann, R.S. and Grigg, N.P., 2008. Utilisation of business excellence models: Australian and international experience,
The TQM Journal, Vol. 20, No. 6, pp. 651-663.

  • Thirty-five organisations that used the Australian Business Excellence Framework were asked whether their performance had changed because they had been following a Business Excellence approach. Figure 3 shows that all organisations, bar one, reported benefits. The organisation that did not report any benefits had only just started to use the Framework. The organisations that had used the Australian Business Excellence Framework for a longer period were more likely to indicate greater improvements to performance.
Figure 3 – Benefits from Using the Australian Business Excellence Framework (Categorised by Length of Use).

Source: Mann, R.S. and Grigg, N, 2007. A Study of National Strategies for Organisational Excellence. Chapter 3, Quality Management and Organisation Excellence: Oxymorons, Empty Boxes, or Important Contributions to Management Thought and Practice. Editors Foley, K, Hensler, D.A. and J. Jonker. Published by: Standards Australia International (SAI) Global, ISBN 1291093307.

  • A moderate correlation (0.6) between the Baldrige Criteria for Performance Excellence “Enablers” (the aggregate of categories 1 to 6) and “Business Results” was identified from studying data from 37 Baldrige-based self-assessments undertaken by members of the New Zealand Benchmarking Club, see Figure 4. This indicates that those organisations with stronger Enablers (i.e., leadership; strategic planning; customer and market focus; information and analysis; human resource focus; and, process management) were more likely to achieve excellent Business Results (i.e., customer satisfaction results; financial and market results; human resource results; and, organisational effectiveness results). It should be noted, however, that a correlation does not in itself indicate a causal relationship.
    The strongest correlation identified was between “Customer Focused Results” and “Financial and Market Results” (a correlation of 0.85). A good linear fit was obtained, and the resulting least squares trend line implies that if an organisation improved its Customer Focused Results, an improvement in Financial and Market Results (within the 95% confidence limits shown in Figure 5), could be reasonably expected.
Figure 4 – Relationship between Scores for Enablers and Business Results.

Figure 5 – Relationship between % Scores for Customer Focused Results and Financial and Market Results.

Source: Saunders, M. and Mann, R., 2005. Self‐assessment in a multi‐organisational network, International Journal of Quality & Reliability Management, Vol. 22 No. 6, pp. 554-571.

  • AU$5,000 was fictionally invested in companies that had won the Australian Business Excellence Award, and the same dollar amount was invested in the S&P All Ordinaries Accumulated Index on the same day. The stock performances of these companies were then monitored from 1990 to 2003. The award-winning companies outperformed the index by 3.5 to 1. This research was discontinued after 2003, as most award recipients have not been stock exchange listed organisations.

    Figure 6 – 1990-2003 Australian Business Excellence Award Winners versus the S&P Accumulated Index.

    Source: SIRCA, 2003, Results of the 1990-2003 Australian Business Excellence Index: An independent study prepared by SIRCA, SAI Global.

    • The performance of 22 Australian Business Excellence Award organisations was studied over an eight-year period (1991 to 1998). The findings showed a direct link between performance in the award programmes and annual improvements in bottom-line results. Organisations achieving high scores in the Australian Business Excellence Award were found to have the highest performance across a wide range of indicators, including financial results and productivity. This also manifests itself in profitability measures. Every percentage point of improvement in the Australian Business Excellence Award score was associated with an approximate 2% increase in the average annual key performance indicators (KPI) used to assess performance. Companies that entered the award more than once received an even more marked increase in KPI improvement (ca. 4%) than those that participated once.
    Figure 7 – Australian Quality Award Results Correlated with Business Performance Improvements

    Source: Hausner, Alexander, Business success and ABEF evaluation results: on the nexus between manufacturing results and frameworks for business excellence, Doctor of Philosophy thesis, University of Wollongong. Dept. of Mechanical Engineering, University of Wollongong, 1999.

    This blog is part of a larger report titled ‘Best Practice Brief, Issue 2: International Research Evidence on the Benefits of Business Excellence.’ The report compiles findings from studies conducted over the last 35 years, shedding light on how Business Excellence delivers economic and societal benefits for organizations and countries worldwide. The full report is available from the member’s area of BPIR.com. Membership of BPIR.com is available at https://www.bpir.com/join-now/.


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    Posted by:BPIR.com
    Author:by Dr Robin Mann, Centre for Organisational Excellence Research, New Zealand, 19 January, 2024
    Source :-
    BPIR Category : 14.3.3 Implement an org-wide continuous improvemnt program
    14.3.4 Conduct a business excellence assessment.
    Latest News Categories: Business Excellence, Latest News
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