Management Excellence Model (MEG)
Management Definition
A set of tasks that seek to ensure the efficiency and effectiveness of all resources made available by the organization to achieve the predetermined goals.
Management Goals
Rational decisions are key in the collection, processing, and use of relevant information. They contribute to the organization’s development and meet the interests of all its employees, the satisfaction of owners, and society in general or a particular group.
Management System
A set of standardized practices, interrelated with the purpose of managing an organization and producing results.
Management Model
An object to be reproduced by imitation, example, or rule.
Waves of Transformation
Three major periods:
- The Agricultural Revolution (1750 AD)
- The Industrial Revolution
- The Information Revolution (after 1970)
Agricultural Revolution
Crop rotation, planting of crops and livestock (manure and animal traction); increased productivity, reduction of chronic food shortages, deepening the social and territorial division of labor.
Industrial Revolution
Step 1: (1760-1860): Use of coal, offices were replaced by machines, labor division. The revolution was restricted to England.
Step 2 (1860-1900): Use of oil, the revolution spread across Europe, using steel, the internal combustion engine, and the invention of the steam locomotive.
Information Revolution
Hardware alone: False “owners” of data; professionals who needed the information had restricted access.
Distributed Computing: Appearance of PCs; battle of paradigms in technology professionals, data can be processed.
Eras of Business
Divided into 4 different periods:
Age of Mass Production (1920/49)
Emphasis on quantity-producing and standardizing the process.
Era of Efficiency (1950/69)
Emphasis on the internal control of operations (bureaucratization of management).
Quality Era (1970/89)
Emphasis on customer satisfaction.
Age of Competitiveness (1990-200X)
Emphasis on the pursuit of business excellence (efficiency + effectiveness), serving the interests of customers, employees, shareholders, and the community.
Era of Human Capital (200x-present)
The main feature will be the company’s survival through competence based on knowledge, i.e., in people (talent).
The Last Two Ages (Quality and Competitiveness)
Correspond to the New Approaches to Management:
Japanese Management
Basic philosophy to avoid waste and promote continuous improvement.
Participative Management
Managing people and enhancing their ability to make decisions and solve problems.
Entrepreneurial Management
Policy and practice of innovation.
Holistic Management
Companies can no longer be seen as a set of departments that perform discrete tasks, but as a single, open system in continuous interaction.
Virtual Corporation
Automation of administrative, manufacturing, operational, and commercial processes.
Total Quality Management (TQM)
A concept that broadened the focus of quality as a strategic aspect of business management.
Benchmarking
The search for industry best practices that lead to superior performance.
MEG Definition
The model establishes an integrated and interdependent orientation to manage an organization. The most important feature is to be a systemic model. It seeks the structure and alignment of the components of organizational management from the perspective of a system. It considers that the various elements of the organization and stakeholders interact harmoniously and balanced in strategies and results.
Characteristics of MEG
It is updated annually based on the management practices of world-class organizations, is directed toward business results, indicating no pre-established forms of implementation, promotes organizational learning, emphasizes the integration and alignment system, and allows an objective diagnosis and measuring the degree of management maturity.
Foundations of Excellence
Internationally recognized express concepts that translate into practice or performance factors found in world-class leading organizations, seeking to constantly improve and adapt to changes.
- Systemic thinking
- Organizational learning
- Culture of innovation
- Leadership and constancy of purpose
- Guidance and information processes
- Vision of the Future
- Delivering Value
- Valuing People
- Knowledge about the customer and the market
- Development of partnerships
- Social Responsibility
Systemic Thinking
A relationship of interdependence between the various members of the organization.
Organizational Learning
The process of continuous learning and systematic knowledge to create a competitive advantage through the perception, reflection, evaluation, and sharing of experiences. Train people aware of continuous learning.
Culture of Innovation
New ideas for activities that generate a competitive advantage to create a competitive race that competitors do not have. Establish a long-term competitive advantage.
Leadership and Constancy of Business
Commitment of leaders to the values of the organization to create the commitment of the staff. Build a culture of perpetual stimulus to the common and lasting purpose.
Guidance and Information Process
Understanding and managing the organization through the process, aimed at improving performance and adding value to stakeholders.
Vision of the Future
Learning process for the continuous and systematic understanding of the factors affecting the company’s business to allow the size of market expectations. Train people with an adequate vision of the future with the organization’s expectations.
Results Orientation
Commitment to results, the organization’s needs.
Valuing People
A process of motivation, training, and welfare of the workforce by creating a healthy work environment.
Knowledge About the Customer and the Market
To understand and know the customer and the market to create value and increase competitiveness.
Development of Partnerships
Sharing activities with other organizations regarding the competencies of each one to optimize the activities and add value to all parties.
Social Responsibility
Ethical and transparent process with stakeholders for the sustainable development of society.
Construction of the MEG
Background
Translated into practice or performance factors found in leading “World Class” organizations.
Requirements
They are the tangible characteristics that demonstrate the fundamentals.
Items/Criteria
They are grouped by similar requirements of a pre-defined logic.
Excellence Criteria
For the MEG to be implemented, it is necessary that the foundations are broken down into eight criteria within a concept capable of expressing the logic of a business: Leadership, Strategy and Plans, Customers, Society, Information and Knowledge, People, Processes, Results.
Maturity Model
To assess the maturity of the management model of an organization, the eight criteria of MEG are broken down into assessment items, divided into two categories (FNQ, 2008a):
- Management processes – the first seven criteria
- Organizational results
Maturity Levels
Commitment to Excellence
Organizations beginners. Total rating of 250 points. (FNQ, 2009)
Towards Excellence
Organizations in intermediate stages. Total rating of 500 points (FNQ, 2009)
Criteria for Excellence
Path of excellence. Total rating of 1000 points (FNQ, 2008).
System Management
A set of standard management practices, inter-related to the purpose of managing an organization and producing results.
Self-Assessment Management System
There is one rule for writing and implementing a management practice, and this rule is called the Management Diagram.
Process Management
Process of a managerial nature; processes relating to criteria 1 to 7.
Practice Management
Process management is implemented effectively by the organization.
Standard Work
Rules for the operation of management practices. It can be expressed as procedures, work routines, administrative rules, flow charts, behavior, collective, or any means capable of implementing the practices.
Management Processes
Operational Processes
Transform inputs into outputs.
Process Management
Transform information into management decisions.
Evaluation Factors
In evaluating the management processes, four factors are taken into account:
Approach
It analyzes the logic and coherence that the organization does.
Application
Evaluate how widespread and continuous the practices are.
Learning
Assesses how companies evaluate and improve their practices.
Integration
Assess consistency between management practices, strategy and goals of the organization, and cooperation and synergy between different areas.
Evidence of Evaluation Factors of Management Processes
Observe adherence to the fundamentals of the chosen practice and the chosen time factors. A management practice must define who, when, and how the implementation plan will be, as well as where it is deployed and the cost. Once you have planned to operationalize it, run it. After this implementation, you should check it according to what was planned, controls, meetings, etc. Now it’s time to compare what was planned with what was run and play in closing the loop deviations PDCA. As nothing is eternal and the world is changing every second, from time to time, you should promote a review asking: Does this practice still continue to produce the desired results, can it be improved, is there something new in the market? Promote improvements by returning to the initial management diagram.
Organizational Outcomes
The final product of this work is to have all management practices aligned, integrated, and producing results for all relevant stakeholders.