Business Excellence is often described as developing exceptional practices in managing the processes and operations of the organization and achieving results, all based on a set of fundamental concepts or values. It has been acknowledged that the volatile business development necessitates the requirement to devise frameworks which enhance their management capabilities. Today, these practices have evolved into various models according to which different organizations operate. Developed through extensive study of practices and values of the world's highest performing corporates over a period of time, these models have been customized by many nations to use them to assess and recognize the performance of organizations.
Business excellence models are essentially frameworks which when applied within an organization can help to focus strategy and action in a more organized manner. The models are holistic in a sense that they focus upon all areas and dimensions of an organization and in particular factors that drive productivity and performance. Research on the overall benefits of using BE models indicates that organizations using such an approach obtain significant operational and financial benefits. Also, BE models encourage a systematic system of benchmarking and assessment. Thus, the organizations can assess their strengths, challenges, anticipate risks and identify areas of improvement more efficiently.
It is highly recommended to form a formal Ethics Board committee which is empowered to investigate all matters of suspected violation of ethical standards of the company, including decisions taken by its top management. This in turn consists of writing a Code of Conduct and Ethics Manual which helps to communicate to stakeholders key principles and commitments to which they should strictly adhere to. The manual also helps in dealing with cases of conflicts of interest.
Several business excellence models exist world-wide. While variations exist, these models are all remarkably similar. Some of the well-known models are Baldrige Model, the European Foundation for Quality Management (EFQM) Excellence Model, Canadian Business Excellence Model and 4P Excellence Model.
Therefore, business excellence models serve multifold purposes in directing the organization towards highest business excellence and conducting assessment of the performance.