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Kanji-Certification of Performance Measurement
(KCPM)
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Kanji-Certification of Performance
Measurement (KCPM) is an acknowledgment given to companies
that clearly demonstrate that their performance systems are
built upon a series of principles that promote the continuous
satisfaction of all their stakeholders. |
As previously shown, these principles must be
consistent with the principles of TQM and the measurements used
cover a range of financial and non-financial indicators targeted
at satisfying the needs and expectations of different stakeholders,
as proposed in the Balanced Scorecard.
In order to fulfil these requirements,
a Performance Measurement System based on Kanji's Business Excellence
Model and Kanji's Business Scorecard was proposed and the reinforced
the need to combine internal and external evaluations of performance
by KBEMS.
In this section, some details will be
given concerning the process of applying to Kanji- Certification
of Performance Measurement (KCPM) and the levels of certification
that can be achieved.
The 3Ps Performance Certification Scheme
Certification means that organisations
have been examined and found to have an effective, reliable and
comprehensive Performance Measurement System that is used in decision-making
and an essential tool for continuous improvement and stakeholders'
satisfaction.
The examination is conducted against a set of criteria that essentially
correspond to the Critical Success Factors, as identified in the
Kanji's Business Excellence Model (KBEM) and Kanji's Business
Scorecard (KBS), i.e., Kanji Business Excellence Measurement System
(KBEMS).
The 3Ps Certification Scheme (see Figure 3) is composed
of three levels of certification, named "Premier"
Certification, "Preferment" Certification and
"Paramount" Certification. The level of certification
achieved depends on the score the organisation achieves when applying
KBEMS and the evaluation of the Performance Submission Report
in terms of deployment of the approach, particularly the evidence
provided that external performance assessment has been conducted
and, at the highest level, that customers, suppliers and other
external stakeholders truly regard the organisation as excellent.
- Premier Certification will be
given to organisations that achieve a Kanji-Certification Index
(KCI) above 500 and bellow 651 points, having applied Part B for
at least one external stakeholder group (customers or suppliers,
for example). It demonstrates that the performance measurement
system in place is comprehensive, reliable and regarded as an
important element in decision-making.
- Preferment Certification
will be given to organisations that have extensively implemented
a performance system strongly based on Total Quality Management
principles and concepts and that extensively collect and use measurements
from external stakeholders. It requires obtaining a Kanji-Certification
Index between 651 and 800 points, having generalised the application
of Part B of KBEMS to all the groups of stakeholders identified.
- Paramount Certification
is the highest grand an organisation
can achieve and will only be obtained by organisations that have
an outstanding performance measurement system - reliable, accurate,
comprehensive, well-structured and used as a basis for continuous
improvement - and that are regarded as Excellent Performers by
all its stakeholders. The minimum Kanji-Certification Index for
this category is 801 points.
Figure 3. 3Ps Certification
Scheme
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How can I achieve Performance Certification?
The primary requirement for Performance
Certification is the development of a consistent performance
measurement system that ensures that the organisation identifies
the needs and expectations of its stakeholders, establishes
a realistic but challenging set of goals, puts in place
a coherent strategy, measures the results and continuously
tries to improve through a learning and innovation cycle.
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Since Total Quality Management principles
and practices are seen as essential in this regard, the Performance
Measurement System must reflect their adoption.
The next step is to provide evidence that you are measuring properly
the right things, making good use of the data, and achieving a
good and sustainable level of performance. This can be assessed
using Kanji Business Excellence Measurement System (KBEMS), described
in detail in Section 3. If you feel you are performing well, you
can submit your application for Performance Certification.
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How Can I Apply?
The application process is expected
to be kept as simple as possible, in order to avoid unnecessary
paperwork and allow a quick response to your submission.
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First
of all, you have to complete an application form with some basic
information regarding your organisation and the system for measuring
performance in place.
Once your certification request is considered, data has to be
collected by an independent team. That team will discuss with
you the content of the questionnaires and then administer them
to your employees and other stakeholders. After that, the team
will calculate the indices and Kanji-Certification Index (KCI).
You will then have the opportunity to clarify any issues with
the experts and then you must prepare your final Submission Report.
You may ask for certification only for a particular department/site
or for the whole organisation. In case your organisation is relatively
small (less than 200 employees), the certification must comprise
the organisation as a whole, due to statistical requirements.
On the other hand, if your organisation is large or operates in
different countries, you may certify your performance measurement
for just part of the organisation. When the number of questionnaires
is very high, statistical analysis requires splitting the data
set into smaller sets with around 250 elements.
The final Performance Submission Report will be a 15 to 20-page
document, which besides including your scores, makes some comments
to the results achieved and gives additional details concerning
your performance measurement system (responsibilities, integrity,
revision process) and evidence that the principles and practices
proposed are being implemented. If you have already applied for
the certification scheme in the past, a brief summary of progress
should also be enclosed.
In some cases, the process may include a visit of the independent
team in order to check or clarify some aspects.
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When Can
I Apply?
You can apply for Kanji-Certification
of Performance Measurement (KCPM) at any time,
but no more than twice a year. If you get a
Certificate, it will be valid for one year.
If you did not get a certificate first time
you applied, six months after you can apply
again and once you have addressed the issues
mentioned in the Summary for Improvement you
would have good chances of getting the certificate.
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After getting your first certificate,
you will be familiar with the methodology and the process of revalidation
will be quite straightforward.
It is possible, of course, to use the models and methodology proposed
without applying for the certification scheme, but the additional
effort involved and the costs of achieving the certification are
relatively low.
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What are the costs and timescales
involved?
The most relevant
investment for the certification is the time
your organisation will have to dedicate to
the process. Moreover, it is important to
have people inside the organisation with
some expertise on quality management and
performance measurement process and you are
strongly recommended to develop these competencies
internally, which may take some time and
involve some costs.
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The time you need will depend on your
starting point. If you already have a good performance measurement
system and you apply the principles and practices incorporated
in Kanji Business Excellence Measurement System (KBEMS), the process
should be fairly easy and you can obtain the Certification in
a couple of months. If you are just starting your Excellence journey
and Performance Measurement in your organisation is still in the
early stages, it may take couple of years. But you have to start
sometime and somewhere and the application of these models and
guidelines will certainly help.
There is a basic registration fee - $2000 - and a fee for data
collection and analysis, which will depend on the amount of questionnaires
involved. In some cases, there may also be an auditing visit.
In any case, the total cost will not exceed $20,000.
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What are the benefits of obtaining
KCPM?
Most of them will
come from having in place a comprehensive,
effective and efficient system for measuring
performance, as explained at the beginning.
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Additionally, you will obtain a certification
that you are addressing, measuring and constantly improving on
the main areas of management. Like other certification schemes,
you will gain on credibility, market value and internal motivation.
It will confirm that your organisation is complying with the most
important requirements for Excellence and this is certainly the
highest level of recognition you can expect.
KANJI-CERTIFICATION OF PERFORMANCE MEASUREMENT
For further information, please contact:
Kanji Quality Culture, Ltd - Director
Gopal K. Kanji
Sheffield Technology Parks
Cooper Building
Arundel St, Sheffield
S1 2NS, UK
Phone: +44-(0)114-221 2003
Fax: +44-(0)114-221 2006
Email: quality@gopal-kanji.com
Web-Site: www.gopal-kanji.com
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© COPYRIGHT 2001, G. K.
KANJI
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