Lesson 2: Business excellence
Business excellence is the systematic use of quality management principles and tools in business management, with the goal of improving performance based on the principles of customer focus, stakeholder value, and process management. Key practices in business excellence applied across functional areas in an enterprise include continuous and breakthrough improvement, preventative management and management by facts. Some of the tools used are the balanced scorecard, Lean, the Six Sigma statistical tools, process management, the Baldrige Criteria for Performance Excellence and project management.
Despite the name, a large number of these concepts have been widely adopted within the public sector as these organisations strive to provide “value for money”. Examples include the Malcolm Baldrige National Quality Award, EFQM Excellence Model and Common Assessment Framework (CAF).