Santosh B. Rane, Nandkumar Mishra

Abstract

The studies show Business Excellence Initiatives such as TQM (Total Quality Management), TPM (Total Product Maintenance), Lean and Six Sigma either fail or meet their limited goals in 60% cases. The practitioners are looking for success levers and anti-levers along with prediction model which can provide proactive alerts about health of the initiative for the course correction. The present paper applies literature survey as research methodology and develops conceptual framework to predict the success of business excellence initiative. The triple success factors of technological breakthrough, improvement methodology and human resource management are equally essential for the success of a business excellence initiative. A 2X2 matrix based on business environmental factors and organizational factors explains well impact of these factors on initiative success. The business environmental factors include profitability, business growth rate, competitive pressure and possibility of product/services substitution. The organizational factor has structural and cultural variables. The structural variables include size and types of the organization, dedicated initiative team and unionism. The leadership commitment, team motivation and support, training, psychological safety and reward are key cultural variables. This conceptual paper further proposes development of logistic regression and ANN (Artificial Neural Network) based model to predict success of business excellence initiative for service and manufacturing industries. The limitation of the study is that model needs empirical validation.

Keywords- Business Excellence Initiative, Business Success Factors, Key Performance Indicator (KPI), Prediction Model, Six Sigma and Total Quality Management (TQM).