Premier's Award of Excellence - Best Practices Handbook

							Developed by
Young & Associates
Introduction

        This handbook provides information on the approaches and
deployment strategies used by high performing, award winning
organizations.
        The examples presented here are a distillation of the ‘Best
Practices’ used by a variety of organizations from both the private
and public sectors. Effective implementation of these practices, in
varying forms and adaptations, is what has made these organizations
successful.
        To demonstrate the applicability of these ‘Best Practices’
to the Premier’s Award of Excellence program, the information is
presented in relation to the PAE criteria used to assess applications
for recognition in this program.
                                  ONGOING WORK UNITS
1.0     Leadership & People Focus

This section focuses on those who have primary responsibility and accountability for the work
unit’s performance. This section examines:
   • the clarity and consistency of purpose throughout the work unit,
   • the efforts to foster and support an environment that encourages and enables people to reach
       their full potential,
   • the use of human resource planning and implementation of a strategy for achieving excel-
       lence through people, and
   • the work unit’s achievements.


1.1     Strategic direction


(a) How are your mission and vision statements developed and communicated?
    • Senior management ensures a common understanding and agreement by everyone in the
      work unit of what the work unit does (mission), where it is going in the future (vision), how
      it intends to get there (business plan) and, in some cases, what the ‘rules of the game’ will
      be (values).
      • Mission, vision and values statements are developed by senior management with the par-
        ticipation of the employees and other key stakeholders.
      • The mission, vision and values are communicated and discussed with everyone in the work
        unit and with other key stakeholders (e.g. clients, suppliers and partners) to ensure a common
        understanding by all. They are reinforced through prominent display of these statements in
        the work unit’s premises, promotional materials, correspondence, presentations, etc.


(b) How are your work unit’s key issues, success factors and priorities determined?
    • The key issues impacting the work unit are determined from a wide range of inputs such
      as client and other stakeholder needs and expectations, technological, social, and economic
      trends, etc. Success factors (i.e. elements such as staff competencies and availability, facili-
      ties, technologies, alliances, etc.) which are essential to achieving success are identified and
      prioritized in the planning process.


(c) How does your work unit develop its plan and align it with the ministry’s business plan?
    • The plan, which provides a ‘road map’ for the work unit to achieve its vision, is developed
      by senior management with the active participation of all stakeholders. The planning process
      involves a systematic evaluation of a range of inputs impacting the work unit and develop-
      ment of appropriate responses to address the issues identified by the work unit. The output
      of the planning process is a documented plan which clearly indicates where the work unit
      is going, how it is going to get there and by when. This is usually captured in a set of goals
      and objectives targeted to be achieved within a specific time frame and which are comple-
      mentary to the goals and objectives of the ministry.



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(d) How is your work unit’s plan communicated to ensure that employees understand and are
    committed to achieving the goals and objectives of the plan?
    • The plan is communicated throughout the work unit, usually through staff meetings in the
      various functional groups, which in turn may develop specific action plans for the contribu-
      tions they must make towards achieving the work unit’s goals.
         Clarification: Action Plans are derived from business plans and are developed to accomplish
         those things the work unit must do well for its strategies to succeed. Action plans are where
         the general strategies and goals are made more specific so that understanding and effective
         deployment are possible. Examples of action plans include: operational plans, work plans,
         human resource plans, improvement plans, facilities plans, etc.
      • Staff commitment to achieving the work unit’s goals and objectives is directly related to the
        extent to which they have participated in the planning and goal setting processes. People
        are always more committed when they feel that their ideas and opinions are valued and
        they have a sense of ownership in the work unit’s future. Awareness of plans and goals is
        reinforced by using communications methods such as newsletters, videos, e-mail and ‘town
        hall’ meetings with senior management to review and discuss the progress being made.
      • Regular review of the plan, and associated action plans, are carried out by senior management
        to monitor progress and ensure alignment of the various functional units with the general
        strategies and goals. Results of these reviews are shared and discussed with all staff in the
        work unit.


1.2     Leadership involvement


(a) How are responsibility, accountability and leadership shared throughout your work unit?
    • Shared leadership is achieved by reducing the levels of management, pushing decision
      making to the lowest levels possible in the work unit and empowering individuals to take
      the initiative and act on issues within their sphere of influence. In some organizations this is
      done by establishing self-directed teams with authority to plan, assign, schedule and control
      their work, without supervisory or management intervention.


(b) How does your management encourage and support continuous improvement, teamwork
    and open communications?
    • Senior management lead by example (i.e. they ‘walk the talk’). Their direct involvement
      includes activities such as reviewing and providing feedback on the overall performance of
      the work unit, leading/sponsoring improvement initiatives, coaching and mentoring peers/
      staff, recognizing and celebrating the achievements of teams and individuals, spending time
      with staff on the ‘shop floor’, and with clients and suppliers, to better understand and meet
      their needs and concerns.
      • In order to improve their effectiveness in setting strategic direction, motivating staff and encour-
        aging continual improvement, high performing management teams seek to continually improve
        their own individual leadership styles and skills and the management processes they use.
      • Interpersonal and management skills are appraised on the basis of feedback from superiors,
        peers, staff and clients. Where feedback identifies behaviors inconsistent with the espoused
        values of the organization, or ineffective management processes (such as planning, review-

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        ing, decision making, etc.) action is taken by these managers to rectify their shortcomings.
      • Teamwork and open communications start at the senior management level where they are
        seen to be working as a team, breaking down perceived and real barriers between functions
        and working together to realize benefits for the work unit as a whole. This is extended to
        the rest of the organization by encouraging and supporting cross-functional participation
        in planning, review and improvement activities.


1.3     Human resource planning


(a) How does human resource planning support your work unit’s goals and objectives?
    • A key success factor, often identified in the business planning process, is the specific human
      resource skills and capabilities required to reach the work unit’s goals. An analysis is made
      to determine the ‘gaps’ between the current skill sets and those required to achieve work
      unit success. A human resource plan is prepared which specifies the strategies by which the
      ‘gaps’ will be filled, i.e. by training/development of existing staff, reassignments, second-
      ments, contracting out and/or recruiting new staff.


(b) How does your work unit recruit, select and orient its employees?
    • When recruiting new staff the focus is on finding and attracting the best people available
      (preferably from within the work unit) by clearly defining the job requirements and specifying
      the academic qualifications, work experience and personal attributes of the staff needed.
      • The staff of the work unit are encouraged to recommend individuals based on their personal
        knowledge of both the job requirements and the proposed individual.
      • The selection process places as much, or more, emphasis on the personal attributes and at-
        titudes of candidates as it does on academic qualifications and work experience. Members
        of the team that the new hire will be joining participate in the interview/selection process
        to ensure a ‘good fit’ of the candidate with the team. When restructuring is necessitated by
        technological or economic changes, training/development or reassignment of existing staff
        are preferred options, rather than letting staff go.


(c) How are the contributions of individuals in your work unit assessed and recognized?
    • Staff contributions are identified through a performance review process which measures
      the individual’s performance within the context of the system (and its constraints) in which
      the individual or teams must work. Input from peers and clients is also taken into account.
      The primary purpose is to provide feedback to individuals and teams on how well they are
      doing and identify areas for further personal or team development and growth.
      • Recognition and rewards for performance are closely linked with organizational objectives
        and values and are based on skills/knowledge acquired, demonstrated versatility, etc. Both
        individuals and teams are recognized and rewarded. The means used to recognize and re-
        ward individuals and teams is usually determined in consultation with the staff to identify
        their preferences.




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1.4     Continuous learning


(a) How are employee training and development needs determined and training and develop-
    ment initiatives evaluated for effectiveness?
    • Personal development and growth – learning – are shared responsibilities within the part-
      nership between the work unit and its people. A systematic approach is used to determine
      the personal development needs of people, in addition to training for on-the-job skills.
      Training and development needs of individuals are identified primarily through the perfor-
      mance management review process involving the individual and the immediate manager/
      supervisor.
      • Learning opportunities are provided both internally and externally. Senior management
        provide a role model for learning by actively participating in internal training programs
        and mentoring peers and staff. Training is often ‘cascaded’ through the work unit by each
        level of management providing the training to their own direct reports. Training is provided
        just prior to the need to apply the newly acquired skills or knowledge, when it is most ef-
        fective.
      • The effectiveness of training and development initiatives is not measured simply by the
        number of courses offered, the number of trainees processed or the size of the training
        budget. Effectiveness is measured by the extent to which new skills and knowledge are ap-
        plied to the work situation and the consequential improvements in individual job and work
        unit performance that are realized to justify the investment in training and development.
        Effectiveness of training and development initiatives may also be evidenced by increased
        mobility of individuals within, or external to, the work unit, e.g. reassignments, promotions,
        secondments, etc.


(b) How are employees’ ideas encouraged and effective practices shared internally and
    externally?
    • In a participatory work climate management actively encourage new ideas and suggestions
      for improvements from staff and responds to all suggestions in a timely manner. All sugges-
      tions are reviewed in terms of merit and their relevance to the strategic and/or improvement
      goals of the work unit.
      • Staff have confidence to implement creative ideas because innovation thrives when they are
        encouraged to be bold and take risks without fear of retribution should their initiatives fail.
        Innovative organizations have a positive culture where the best ideas are those that ‘rock
        the boat’ or result from ‘out-of-the-box’ thinking.
      • The work unit is open to sharing and exchanging its experiences, good and bad, with others
        (such as other government organizations, trade/business associations, non-profit organiza-
        tions, professional associations, etc.) to learn from and/or help others to improve and become
        more effective.




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1.5     Employee satisfaction


(a) How are employee satisfaction and morale measured and analyzed to identify improvement
    opportunities?
    • Staff satisfaction/opinion surveys and focus group meetings are conducted on a regular
      basis, to obtain information on staff perceptions regarding opportunities for personal growth
      and advancement, job satisfaction and security, compensation and benefits, confidence in
      the leadership, cooperation between functional groups, the work environment, pride in the
      organization, etc. and the relative importance of these issues to staff. Indicators of staff dis-
      satisfaction such as turnover, absenteeism and grievances are also tracked and factored into
      the survey results.
      • High performing organizations also recognize and fulfill their obligations and responsibili-
        ties for the well-being of their people. These organizations go beyond simple compliance
        with mandatory regulations for worker health and safety and environmental controls. Staff
        are encouraged, and given time off to become involved in community initiatives. In terms
        of well-being, access to services and facilities for staff include such things as access to exer-
        cise and recreational facilities, family, financial and addiction counselling, on-site medical
        examinations etc.
      • Results of the staff satisfaction/opinion surveys are analyzed and made available to every-
        one in the work unit. Issues and concerns identified in the feedback from staff are openly
        discussed with management and actions are taken to resolve these concerns.


1.6     Outcomes


(a) Provide levels and trends in key measures of overall work unit operating performance
    (including financial management).
    • Overall work unit operating performance refers to the degree of success of the work unit in
       achieving the goals and objectives established in its business plan. Key performance measures
       are identified and used to measure and monitor progress to the goals. Performance targets
       are established for each key performance measure and attainment of these targets constitute
       the main drivers of the work unit. Where possible, the performance targets are established (or
       benchmarked) in relation to other work units in the Alberta Government or equivalent work
       units in other jurisdictions. In some cases targets may be established against organizations
       in the private sectors. In all cases, a review of overall work unit operating performance also
       includes an assessment of financial performance. Typically, financial performance measures
       would include revenues, operating costs, adherence to budgets, cost reduction/control, asset
       management etc.


(b) Provide indicators of the effectiveness of training and development initiatives.
    • Indications of the effectiveness of training and development activities are used to evaluate
      the return on investment in people, which can be quite substantial. Analysis of these results
      are used to determine how best this investment can be utilized to better serve the needs of
      the people and the organization.


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(c) Provide levels and trends regarding employee suggestions that are submitted and imple-
    mented.
    • The number of ideas and suggestions submitted by staff that result in a positive impact on
      work unit performance and client satisfaction is a good indicator of the level of morale and
      the level of staff commitment to continual improvement. It also reflects the responsiveness
      of senior management to good ideas submitted by staff.


(d) Provide levels and trends of employee satisfaction and morale, such as, satisfaction survey
    results, turnover rates, absenteeism and grievances statistics.
    • Staff satisfaction and morale provides the most direct measure of the effectiveness of the
       approaches used to create a people-focussed, caring organization. A constant vigilance is
       maintained by senior management on these results and prompt action is taken if the results
       indicate declining levels of satisfaction or morale.
      • High rates of staff turnover, absenteeism and grievances raised are generally symptomatic of
        underlying, but often unspoken, causes of staff dissatisfaction. Investigation of these trends
        are carried out by senior management to discover the root causes and eliminate them.


2.0     Planning for Improvement

This section examines:
   • the process for identifying and prioritizing the improvement initiatives necessary to achiev-
      ing the work unit’s goals and objectives.


2.1     Improvement planning


(a) How are improvement initiatives determined and implemented, improvement targets es-
    tablished and progress monitored?
    • Improvement initiatives are always linked to the success factors and priorities identified
       in the business plan, i.e. they are part of the ‘game plan’ to achieve success. The need for
       specific improvements are derived from those success factors which indicate a need for
       enhancement of existing competencies or capabilities, based on performance results of key
       processes and/or client feedback.
      • Establishing improvement targets by simply extrapolating past performance, or by internal
        comparisons within the work unit may not always provide the level of performance required.
        Use is therefore made of comparative data from external sources, such as public sector lead-
        ers or high performing private sector organizations.
      • Regular reviews of progress against the objectives and improvement targets of the plan
        reinforces the importance of continual improvement to the work unit.


(b) How are improvement communicated internally and externally to key stakeholders?
    • Improvement initiatives are communicated to all staff and key stakeholders through the
      business planning process which identifies key performance measures and specific perfor-
      mance targets to be attained during the term of the plan. Ensuring that the staff and key

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        stakeholders are fully aware of the extent and types of improvement initiatives underway
        (or planned) is important in two ways. Firstly, process changes in one function could have
        impact on another function of the work unit and secondly, it will avoid wasteful duplication
        of improvement efforts.


(c) How are clients and other key stakeholders involved in the work unit’s improvement
    activities?
    • Work units often take advantage of the specialized knowledge of clients and suppliers or
       partners to assist in arriving at optimum solutions for process improvements. These people
       bring expertise as users of the ultimate product or service or as providers of materials, ser-
       vices or equipment used in the process.

2.2     Outcomes


(a) Provide levels and trends of the extent of improvement activities (list of improvement proj-
    ects and numbers/types of people involved).
    • Involvement levels in improvement initiatives provides a good indication of staff morale
       and management commitment to achieving the work unit’s improvement goals. The num-
       ber of improvement initiatives, and the numbers of people working on them in the various
       functional areas or on cross-functional teams is a good measure of effective deployment of
       the work unit’s plan.


3.0     Client & Stakeholder Focus

This section examines the work unit’s focus on:
   • client-driven innovation and exceeding client needs and expectations, and
   • relationships with external organizations, institutions and/or alliances/partnerships that
      are critical to achieving the goals and objectives of the work unit’s plan.


3.1     Voice of client


(a) Who does your work unit define as its clients?
    • Knowing who the work unit’s clients are and the needs and expectations they have of the
      work unit and its products or services are fundamental to success.
      • The work unit identifies client groupings or market segments based on differing needs for
        products or services. These client groupings may be based on the demographics (e.g., age,
        income, geographical distribution) of the client population. Accurate records of client group-
        ings are maintained for all subsequent client focus activities.
(b) How is information on client needs gathered, analyzed and converted into product and/or
    service requirements?
    • Client needs and expectations are determined by soliciting this information directly from
       the clients utilizing a variety of information-gathering techniques. These include informal


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       front-line contacts, client interviews, structured focus groups, mail/telephone/fax/e-mail
       needs surveys, etc.
   • The future needs and expectations of current clients, and potential new clients, are predicted
     by tracking technological, societal, environmental, economic, or demographic factors that
     may bear on changing client needs, expectations or preferences.
   • Client needs and expectations are usually stated in terms of the solutions they are seeking
     for their problems. These needs and expectations are analyzed and converted, by the work
     unit to specific product and/or service requirements to fulfill these needs.
   • Everyone in the work unit is made aware of these requirements and of the importance to
     the work unit to meeting them. This is done through staff meetings/workshops and visibly
     prominent display of client satisfaction data.


(c) What processes does your work unit have for clients to obtain information, seek assistance
    and complain?
    • Ease of access by clients to obtain information, seek assistance or express concerns is a top
      priority. Access to people in the work unit, who can best respond to clients, is made as easy
      as possible by providing direct access through toll free phone/fax lines, e-mail addresses
      or service centres.
   • Information on how to best access, and use, the services of the work unit are provided
     through pamphlets, videos, help desks, presentations, etc.


(d) How does your work unit respond to clients’ inquiries and complaints?
    • Fast, courteous and accurate response to client inquiries, requests for assistance or complaints
      is the prime objective. A formal complaints management process is used to ensure that cli-
      ent complaints are accurately recorded and resolved to the client’s satisfaction as quickly as
      possible. Staff who are assigned to responding to client requests or complaints are specifi-
      cally trained, particularly with respect to the interpersonal skills required to effectively deal
      with clients. In some cases, full time dedicated service representatives are made available
      to assist clients. Staff who deal directly with clients are often given the authority, within
      specified limits, to act to solve client problems with no, or minimal need for management
      intervention.
   • Statistics on the types and frequencies of client complaints are collected and analyzed to
     identify significant items of concern to clients and the corrective actions that need to be
     taken.
   • To ensure that the work unit remains focussed on providing fast and accurate responses to
     clients’ requests and complaints, service performance standards are often established. These
     standards include targets such as ‘success rate of contact on first attempt’, ‘time taken to
     provide information requested’, ‘time taken to resolve complaints’, ‘error rates of informa-
     tion provided’ etc. Performance to these standards are reported to senior management on a
     regular basis.




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3.2     Client satisfaction


(a) How does your work unit measure client satisfaction?
    • The client’s perceptions of the work unit and its products or services are measured on a regu-
      lar basis. Client satisfaction data is gathered in a variety of ways using client surveys, focus
      groups, post-transaction follow up, feedback from front-line staff, the complaints manage-
      ment process, etc. Satisfaction measurements are designed to provide reliable information
      on client ratings of product or service performance, any support services provided and the
      client’s direct interactions with the work unit’s staff.
      • In addition to obtaining satisfaction ratings, information is simultaneously obtained on how
        important the various product features or service attributes are to the client.
      • The combination of client satisfaction/importance ratings provide valuable information to
        the work unit on where to focus its attention and set priorities for improvement. The ob-
        jective is to fully satisfy clients for those product features/service attributes they consider
        most important and avoid overinvesting resources in those areas which the clients consider
        as unimportant. The data is analyzed and summarized and these results are reviewed at
        management and staff meetings to identify which work processes, product features and/or
        service attributes or service staff competencies need to be improved to increase client satis-
        faction levels.


3.3     Identification of stakeholders


(a) Who does your work unit define as its key stakeholders (other than clients)?
    • Key stakeholders are those individuals or groups who have an interest in the operations
      and outcomes of the work unit and/or whose support or active participation is critical to
      the success of the work unit. These typically include suppliers of goods and services, private
      sector partners contracted to deliver services to clients, other government organizations,
      etc.


(b) How does your work unit interact cooperatively with key stakeholders to develop, provide
    and/or improve products or services for clients?
    • The work unit seeks to establish mutually beneficial relationships with key stakeholders.
      These arrangements are usually long term in nature, involve joint planning to achieve com-
      mon objectives and are characterized by frequent and open communications to monitor
      progress and cooperatively solve problems. In some instances space and facilities are shared
      to enhance the interactions between the two groups. Also, advantage is taken to benefit from
      joint training initiatives to minimize training costs and ensure a common understanding of
      a specific subject area.
      • Key stakeholders, particularly suppliers and partners contracted to deliver services to cli-
        ents, and in some cases the clients themselves, are encouraged to participate directly in the
        work unit’s process improvement initiatives and in the development of new or improved




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        products or services. This takes advantage of the stakeholder’s expertise and experience
        in the application of the goods/services they provide, the front-line experience in dealing
        directly with the work unit’s clients and the clients perspective on the product or service.
      • In order to simplify and expedite services to clients, where more than a single government
        agency is involved, work units seek out opportunities to integrate their service delivery pro-
        cesses with others to the maximum extent possible. Integrated service delivery can involve
        the work units of different ministries in the same government or work units of similar min-
        istries in two or more governments. These latter often stem from interprovincial or federal-
        provincial agreements. The objective is to provide clients with a seamless, more responsive
        service, that is easier to access and minimizes the amount of time they spend ‘searching’ for
        the information or assistance they need.


3.4     Outcomes


(a) Provide levels and trends in client satisfaction and in handling client inquiries and com-
    plaints to established service standards, compared with public service leaders and other
    organizations.
    • Client focussed organizations continually measure and track their client’s perceptions of
       the organization, its people and its products or services and monitor changing client needs,
       expectations and preferences.


(b) Provide examples of improved operations and/or products or services resulting from the
    involvement of stakeholders.
    • The involvement of stakeholders in the work units improvement initiatives are based on
       maximizing the measurable benefits to all stakeholders and improving the work unit’s op-
       erations and/or services.



4.0     Process Management

This section examines the work unit’s focus on:
   • ensuring that processes, that are critical for success achieve the desired outcomes, and
   • continual improvement of products and/or services and the associated processes.


4.1     Process definition


(a) What are the key business processes that your work unit uses to achieve the desired out-
    comes?
    • ‘Process’ refers to linked activities with the purpose of producing a product or a service for
      a client. Generally, processes involve combinations of people, machines, tools, materials and
      information used in a specific sequence of steps or actions.
      • Key business processes include:
        • product realization (which includes all activities from initial request through production
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            to delivery of product);
        • service delivery (which includes all activities from initial request through internal service
          operations, to provision of the service);
        • administrative and support processes (such as finance, materials management, informa-
          tion systems, etc.) which directly support product realization or service delivery
      • The key business processes are identified and ownership/accountability for the performance
        of each process is assigned to an individual or team in the work unit. The level at which
        ownership is assigned depends on the importance/complexity of the process.
      • The key business processes are standardized by documenting them (using process flowcharts,
        process maps, written procedures or work instructions) so that the staff involved clearly
        understand how the process works.


4.2     Process control


(a) How does your work unit monitor and control key processes to ensure consistency in
    products and services provided?
    • Processes are controlled by measuring and monitoring critical process and/or product pa-
      rameters, at appropriate stages of production or service delivery, against specified pass/fail
      criteria. Monitoring is carried out to ensure consistency and to provide timely indication of
      process malfunction in order to avoid costly rework or waste. In some cases (usually high
      volume/repetitive processes) statistical process control techniques are used to ensure that
      the processes are stable and in control.


(b) How are key processes analyzed to determine opportunities for improvement and how are
    corrective actions implemented to solve process problems?
    • Involvement in improvement initiatives is a natural consequence of commitment (buy-in) by
       staff to the work unit’s improvement goals. Improvement teams are organized with adequate
       resources and clear terms of reference. A prerequisite for effective improvement teams is
       competence in teamwork, problem solving and the use of data-based analytical tools and
       techniques.
      • Process improvements are carried out by a cross-functional teams composed of staff directly
        involved in, or impacted by, the operation of the process. These people have a deep under-
        standing of the process and their ‘ownership’ of the process and their proposed solutions
        will always result in more effective implementation. In some cases particular expertise (e.g.,
        engineering, accounting, human resources, statistical analysis) may be brought in to assist the
        improvement team. As with corrective actions, use is made of problem identification, data
        gathering and analysis, evaluation of alternative solutions and validation of the proposed
        solution.
      • Process documentation is updated and staff are trained in the new or revised process, if
        necessary, prior to full implementation.
      • If process problems occur, resulting in non-conforming products or services, corrective actions




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        are taken (usually by the staff involved in the process) to prevent reoccurrence. Corrective
        actions involve problem identification, data gathering and analysis, root cause identification
        and design/validation of the proposed solution(s).

4.3     Outcomes

(a) Provide levels and trends of improvements in product and/or service quality, and in process
    efficiency and effectiveness. (Include comparisons with other organizations.)
    • Product quality is measured in terms of performance, features, reliability, durability and
       serviceability. Service quality is measured in terms of timeliness, accuracy and staff attributes
       such as competence, courtesy and credibility.
      • Process capability is a measure of how consistently and effectively a process is working. Con-
        sistency is a measure of the ability of the process to repeatedly produce the desired result(s)
        in spite of variances which may be introduced by the inputs to the process, the activities in-
        volved, the equipment used and the environment in which the process operates. Effectiveness
        is a measure of the cost and time taken (referred to as cycle time) for the process to produce
        the desired results. Measures of efficiency relate to optimal utilization of resources such as
        people, machines, materials, energy and capital to achieve the desired results.




Best Practices Handbook 2008                                                                        12