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Glossary of Key Terms:This Glossary of Key Terms defines and briefly describes terms used throughout the Showcase in Excellence Awards Application that are important to understand as you move through this criteria. These key terms are presented in the application as underlined blue type whenever they are used. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z The term “alignment” refers to consistency of plans, processes, information, resource decisions, actions, results, and analysis to support the key organization goals. Effective alignment requires a common understanding of the purposes and goals. It also requires the use of complementary measure and information for planning, tracking, analysis, and improvement at three levels: the organizational level, the process level, and the work unit level. The term “analysis” refers to an examination of facts and data to provide a basis for effective decisions. Analysis often involves the determination of cause-effect relationships. Overall process analysis guides the management of that process toward achieving the key business results and toward attaining strategic objectives. Despite their importance, individual facts and data do not usually provide an effective basis for actions or setting priorities. Effective actions depend on an understanding of relationships, derived from analysis of facts and data. The term “benchmarks” refers to processes and results that represent best practices and performance for similar activities, inside or outside an organization’s industry. Organizations engage in benchmarking to understand the current dimensions of world-class performance and to achieve discontinuous (non-incremental) or “breakthrough” improvement. Benchmarks are one form of comparative data. Other comparative data include industry data collected by a third party (frequently industry averages), data on competitor’s performance, and comparisons with similar organizations in the same geographic area. The Criteria are built upon the following set of interrelated Core Values and Concepts: Visionary leadership, customer-driven excellence, organizational and personal learning, valuing employees and partners, agility, focus on the future, managing for innovation, management by fact, social responsibility, focus on results and creating value, systems (process) perspective. These core values and concepts are embedded beliefs and behaviors found in high-performing organizations. They are the foundation for integrating key business requirements within a results-oriented framework that creates a basis for action and feedback. These core values and concepts form the basis for the Showcase in Excellence Awards and Criteria. The term “customer” refers to actual and potential users of the organization’s products and services. Customers include the end users of your products and services, as well as others who might be the immediate purchasers of your products or services, such as wholesale distributors, agenda, or companies that further process your product as a component of their product. These Criteria address customers broadly, referencing current customers, future customers, as well as customers of your competitors. The term “cycle time” refers to the time required to fulfill commitments or to complete tasks. Time measurements play a major role in the Criteria because of the great importance of time performance to improving competitiveness. “Cycle time” refers to all aspects of time performance. Cycle time improvement might include time to markets, order fulfillment time, delivery time, changeover time, customer response tine, and other key measures of time. The term “defects” refers to the absence, deficiency, fault, imperfection, or blemish of one or more criteria that is important to your product or service as defined by the customer. Defects are the outcome of “things gone wrong” within an organization’s processes. As quality is defined within these criteria as customer-driven, so are defects. Therefore, defects can be described as related to anything undesirable in your product or service that is of importance to your customers. The term “how” refers to the processes that an organization uses to accomplish its mission requirements. In responding to “how” questions in this application and criteria document, descriptions should include information such as your approach (methods, techniques, and measures), deployment (where and to what appropriate extent is the approach used), learning, and integration factors. The term “integration” refers to the harmonization of plans, processes, information, resource decisions, actions, results, and analysis to support key organization-wide or process-wide goals. Effective integration goes beyond alignment and is achieved when the individual components of a performance management system for the organization, system, or individual process operate as a fully interconnected whole. The term “key” refers to the major or most important elements or factors, those that are critical to achieving your intended outcome. This application and criteria, for example, refer to key influences, key challenges, key measures, etc. These refer to those that are most important to the organization’s success. They are essential elements for pursuing and monitoring the desired outcome of the profiled process. The term “level” refers to the numerical information that places or positions a result and performance on a meaningful measurement scale. Performance levels permit evaluation relative to past performance, projects, goals, and appropriate comparisons. The term “measures and indicators” refers to numerical information that quantifies input, output, and performance dimensions of processes, products, services, and the overall organization as applicable. Measure and indicators might be simple (derived from one measurement) or composite (derived from multiple or combined measurements). This application and criteria does not make a distinction between measures and indicators. However, some users of these terms prefer to use the term indicator (1) when the measurement relates to performance but is not a direct measure of such performance (e.g., the number of complaints is an indicator of dissatisfaction but not a direct measure of it) and (2) when the measurement is a predictor (“leading indicator”) of some more significant performance (e.g., increased customer satisfaction might be a leading indicator of market segment share gain). Mission The term “mission” refers to the overall function of an organization. The mission answers the question, “What is this organization attempting to accomplish?” The mission might define customers or market served, distinctive competencies, or technologies used. The term “performance” refers to output results and their outcomes obtained from processes, products, and services that permit evaluation and comparison relative to goals, standards, past results and other organizations. Performance might and can be expressed in both non-financial and financial terms. The term “process” refers to linked activities with the purpose of producing a product or service for a customer (user) within or outside of the organization. Generally, processes involve the combination of people, machines, tools, techniques, and materials in a defined series of steps or actions to produce an intended output. In some situations, processes might require adherence to a specific sequence of steps, with documentation (sometimes formal) of procedures and requirements, including well-defined measurement and control or evaluation steps. In many service situations, particularly when customers are directly involved in the service, process is used in a more general way, i.e., to spell out what must be done, possibly including a preferred or expected sequence. If a sequence is critical, the service needs to include information to help customers understand and follow the sequence. Service processes involving customers also require guidance to the providers of those services in handling contingencies related to customers’ likely or possible actions or behaviors. In knowledge work such as strategic planning, research, development, and analysis, process does not necessarily imply formal sequences of steps. Rather, process implies general understanding regarding competent performance such as timing, options to be included, evaluation and reporting. Sequences might arise as part of these understandings. In the scoring system used for the Showcase in Excellence Award, process achievement level is assessed. This achievement level is based on four factors than can be evaluated for any process: Approach, Deployment, Learning, and Integration. The term “productivity” refers to measures of the efficient use of resources. Although often applied to single factors such as staffing (labor productivity), machines, materials, energy, and capital, the productivity concept applies as well to the total resources used in producing outputs. The use of an aggregate measure of overall productivity allows a determination of whether the net effect of overall changes in a process – possibly involving resource tradeoffs – is beneficial. The term “results” refers to output and outcomes achieved by an organizational process in addressing the requirements of a Showcase in Excellence item. Results are evaluated on the basis of current performance; performance relative to appropriate comparisons; the rate, breadth, and importance of performance improvements; and the relationship of results measures to key organizational performance requirements. The term “rework” refers to the necessity to do a process step or sequence of process steps over again, usually because the step or sequence was not completed properly the first time, producing a substandard output or outcome (product or service), sometimes called a defect. The term “segment” refers to a part of an organization’s overall customer, market, product line, or employee base. Segments typically have common characteristics that can be logically grouped. In Item 2.0, Process Results, the term refers to disaggregating results data in a way that allows for meaningful analysis of an organization’s or process’ performance. It is up to each organization to determine the specific factors that it used to segment its customers, markets, products, and employees – and why. The term “trends” refers to numerical information that shows the direction and rate of change for an organization’s or process’ results. Trends provide a time sequence of organizational or process performance. A minimum of three data points generally are needed to begin to ascertain a trend. More data points are needed to define a statistically valid trend. The time period for a trend is determined by the cycle time of the process being measured. Shorter cycle times demand more frequent measurement, while longer cycle times might require longer time periods before meaningful trends can be determined. The term “value” refers to the perceived worth of a product, service, process, asset or function relative to the cost and to possible, viable alternatives. The term “values” refers to the guiding principles and behaviors that embody how the organization and its people are expected to operate. Values reflect and reinforce the desired culture of the organization. Values support and guide the decision making of every employee, helping the organization accomplish its mission and attain its vision in an appropriate manner. Examples of values might include integrity and fairness in all interactions, exceeding customer expectations, valuing employees and diversity, protecting the environment, and attaining performance excellence every day. The term “vision” refers to the desired future state of your organization. The vision describes where the organization is headed, what it intends to be, or how it wishes to be perceived in the future. |
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