Guidelines for Implementing
Innovation Excellence Framework
in Universities
By
Dr. Mohd Rashid bin Ab Hamid
Universiti Malaysia Pahang (UMP)
Achieving Innovation Excellence Framewok
through the Performance Measurement System
 Historically, performance measurement has
meant measuring tangible things …
(such as return on investment (ROI), cash flow, increase
in revenue and profit)
 In recent years, attention and focus have shifted
toward measuring intangibles
(such as quality, customer satisfaction, and safety)
 In light of this transition, researchers began investigating
ways of incorporating both financial and non
financial performance in an effort to achieve
innovation well-being
The Value-Based Total Performance
Excellence Model (VBTPEM)
• VBTPEM provides a holistic and comprehensive
framework to assess the performance of
organisations that incorporates universal
(corporate) – core values in the performance
measures
• The guidelines are based on the Valuebased Total Performance Excellence
framework that incorporates a well-defined
set of organizational core values in each
of the performance criteria.
copyright ADMACS/IKIM
OUTLINES
1. Why we need (core) values now?
2. Innovation Excellence Model – The Framework (IEF)
i.
The Conceptual Framework - Causal Relationships
ii. SEM: Measurement & Structural Models
iii. PLS-based SEM
3. An Illustration of IEF application
- Data & Results
WHY WE NEED (CORE) VALUES NOW?
1. Core element in Strategic Management System
2. Rhetoric-Reality Gap – confuse aspired behavior with
actual behavior
3. Values-related events leading to the collapse of giant
organisations and Disclosures of malpractices in public
organisations – as reported by Auditor General Report
Values-related Crisis – PAST & CURRENT ‘Events’
Global Scenario
• The collapse of leading
corporations
(e.g., Enron 2001, Northern
Rock 2007, Lehman Brothers
2008, Bernard Madoff)
• Lack of financial accountability
• Lack of transparency in corporate governance
• Greed & Manipulation of Trust
Public Organisations
In Audit General Report:
• Dishonesty in spending/claims by
public servants
• Corruption & Abuse of power by
heads of departments
•
Lack of urgency by public servants
in making decision, resulting in
delays in many service deliveries
These past & current ‘events’ – as strong reminders for organisations about the importance
of ‘core values’ as the ‘guiding principles’
The Challenges
1. To measure ‘subjective’ core values in most accurate
manner – use indicators or proxies
2. To ‘operationalise’ core values as the driving force in the
pursuit of performance excellence - make ‘visibility’ of
values-related strategies and actions as a formal agenda
3. Existing BEMs such as Malcom Baldrige and EFQM do not
address core values in explicit manner, i.e., do not use core
values as an independent assessment dimension
So we propose the Values-based Total Performance
Excellence Model (VBTPEM) as a framework for valuescentric BEM by addressing core values explicitly in
defining/formulating indicators for measuring relevant
performance constructs/dimension/criteria.
The Value-Based Total Performance Excellence
Model - Framework
copyright ADMACS/IKIM
Examples of
the (Core) Values from successful companies
Core Values Statement
Core Values
• A belief in the important of
people as individuals and people
are treated with respect (e.g.,
Citibank)
• A belief that most members of
the organisation should be
innovators and a corresponding
willingness to support failure
(e.g., Hewlett Packard)
• A belief in the importance of the
details of execution, the nuts and
bolts of doing the job well
( e.g., Pepsi Cola)
• A belief in superior quality and
service (e.g., Proctor & Gamble)
• Respect for People
• Innovation & Tolerance
• Meticulous / Thorough
• Quality
copyright ADMACS/IKIM
Implementing Innovation Excellence
Framework (IEF)
THE BASELINE
ASSESMENT USING
IEF
VALUE-BASED
INTERVENTION
PROGRAM
POST-EVALUATION OF
ORGANISATION PERFORMANCE
EXCELLENCE THROUGH IEF
To examine the
extent to which core
values are ‘visible’
and ‘internalised’ in
organisations
To rectify, accommodate
and Instill the missing
core-values
To assess the
impact of The
Value-Based
Intervention
Program
BASELINE
ASSESSMENT
&
VALUE-BASED
TRANSFORMATION
No
On-line Survey &
Analysis using
VBTPEM
Automated System
Enhance organisation-wide Core Values & organisational Best Practices
Are the
Desired
Results
Met?
12
Yes
STRUCTURAL EQUATION MODELING:
MEASUREMENT & STRUCTURAL MODELS
Truthfulness
Rightness
Trustworthiness
Meaningfulness
Effectiveness
Good Intention
Appropriateness
Beneficial
Optimisation
Openness
Efficiency
Receptiveness
Prudence
Fairness
Consultation
Mutual Trust
Acknowledgment
Altruism
Profitability/Cost
Saving
Respectfulness
Exemplary
Synergism
Wisdom
Non-discriminatory
Advancement
Regulatory/Shariah
Compliance
Sincerity
Harmony
Mutual Interest
Mutually Beneficial
Market Value
Commitment
Unifying
Responsiveness
Universal
Stakeholder/Cust.
Satisfaction
Sense of Direction
Sustainability
Interdependence
Achievability
Image/Reputation
Competency
Timeliness
Empowerment
Opportunity-Sensing Comradeship Social Responsibility
Transparency
Beneficial
Efficiency
Consultation
Genuineness
Collectiveness
Caring
Ethical
Non-exploitative
Trust
Value -Add
Economy of Scale
Respect
Enterprising
Frugality
Quality
Competitiveness
Timeliness
Loyalty/Retention
How do we Measure Values?
Rating Scale
0
1
2
Degree of ‘Visibility’ of Almost not Visible
3
4
Somewhat Visible
5
6
7
Fairly Visible
8
9
10
Most Visible
Example: To measure ‘Committed’ Leadership
What’s your rating for the ‘commitment’ of leadership based on how visible (rarely/occasionally/ often)
the leadership is seen with subordinates discussing and encouraging them to work towards achieving
organizational goals
THE BENEFITS OF CREATING A VALUES-BASED
WORKPLACE
• Higher employee productivity, engagement and creativity
• Lower attrition rate
• Lower absenteeism and lower health-related expenses
• Better teamwork
• Loyal customers who are delighted by your energized
employees
• Organisations can gain a reputation as great (most admired)
places to work.
REFERENCES
BOOKS & MONOGRAPH
•
Mokhtar Abdullah, Nooreha Husain, Nik
Mustapha Nik Hassan and Mazilan Musa
(2003). Value-Based Total Performance
Excellence Model: Baseline Assessment
Criteria Guidelines for Organisations,
Institute of Islamic Understanding Malaysia
(IKIM), p. 92.
•
Mokhtar Abdullah, Nooreha Husain, Nik
Mustapha Nik Hassan and Mazilan Musa
(2003). Essays on ISLAMIC MANAGEMENT &
ORGANISATIONAL PERFORMANCE
MEASUREMENTS, Institute of Islamic
Understanding Malaysia (IKIM), p. 165.
REFERENCES
JOURNALS 2012
1. Mokhtar Abdullah, Mohd Rashid Ab Hamid, Zainol Mustafa, Nur Riza Mohd Suradi, Fazli
Idris, (2012). Value-based Total Performance Excellence Measurement (VBTPEM): A
Conceptual Framework for Organisations, Total Quality Management and Business
Excellence, DOI:10.1080/14783363.2011.637786 (ISI INDEXED ;IMPACT FACTOR 0.387)
2. Hamid, M. R. Ab. Mustafa Z., Idris F., Abdullah M., Suradi N. R. M. & Ismail W. R. (2012).
Value-Based Performance Excellence Measurement for Higher Education Institution:
Instrument Validation, accepted for publication in Quality & Quantity International Journal
of Methodology, (ISI INDEXED; IMPACT FACTOR 0.688)
Methodology
Interpretation of scale measurement (scale 0 to 10)
Rating of ‘Visibility’
0
1
Not Visible
2
3
4
5
6
Somewhat Visible
The scores for all the corresponding items
in the questionnaires are then transformed
into the Performance Index which has a
scale of 0 to 100. This performance index
can lead to organizations becoming
focused on reaching a particular number,
to the extent of specifying a precise
numeric target for the organization to
achieve. The four categories used to
describe the levels of performance
excellence are as shown:
7
Visible
8
9
10
Most Visible
Index Scoring & Grading
SCALE : 0 - 100
Excellence
81 – 100
Good
61 – 80
Moderate
41 – 60
Poor
copyright ADMACS/IKIM
0 – 40
Conclusion
IEF- A systematic way of identifying the
strengths of the innovation capabilities
in the universities and improvement
opportunities while at the same time
monitoring the progress of total
performance