Britishian Foundation for Quality Management
BFQM helps organisations perform better by creating data-driven insights backed up by organisational experts, to fit your priorities, your purpose, and your people. Powered by the BFQM Model practical framework for organisational change , performance improvement and credit bureaus.- Credit bureau
- Finacial transparency
- Mangement by process and fact
- Leader ship constancy of purpose
- People development & involvement
- Customer focus
- Results orientation
- Public responsibility
- Partner ship development
- Continuos learning improvement & inovation
DEFINE YOUR GOALS
But the basis of our activity in Great Britain is in the direction of expanding credit reports for bilateral investment between companies and individuals in the Middle East and the United Kingdom, as well as the development of financial transparency. credit 062a0abureau, exports and imports, and finally credits for use in banking, insurance and worldwide stock exchanges
Conclusion, the description of our credit model will be a combination of the methods of CREDIT AGENCY companies such as FITCH, S&P, and Moody with audit models similar to what UKAS does under the license of IAF by using EFQM checklists.
In addition to explaining the ten requirements under evaluation, the innovative HTC SMARTNEXUS checklist is attached.
Transparency: Definition, How It Works in Finance, and Example
What Is Transparency ?
Although the term transparency is not a financial term or metric per se, it has become increasingly important to consumers and investors over the last several years.
Transparency is the extent to which investors have ready access to required financial information about a company, such as price levels, market depth, and audited financial reports. Investors also require transparency with investment firms and funds surrounding the various fees that’ll be charged to them.
Transparency can also include clarity for consumers regarding the fees that bank charges or the rate that consumers will ultimately pay to their credit card company.
KEY TAKEAWAYS
Transparency is the access and proper disclosure of financial information, such as a company’s audited financial reports.
Transparency also involves clarity with investment firms and funds surrounding the various fees that’ll be charged to clients.
Transparency for consumers includes proper disclosure of bank fees and the interest rate charged by credit card companies.
Transparency helps reduce uncertainty and wild stock price fluctuations because all market participants can base decisions of value on the same data.
Price transparency is the extent to which all information regarding a stock’s price (such as its bid prices, ask prices, and trading quantities) is available to traders.
Understanding Transparency :
Financial decisions are typically made based on an assessment of a financial situation.
Investors analyze a company’s financial statements to determine if the stock is worth buying. On the other hand, consumers choose a bank or investment firm based, in part, on the costs or fees. Adequate disclosure of fees, interest rates, and penalties are important for making sound decisions as to what credit card or loan to apply for as well as what bank account to open or what mutual fund to invest in.
Because investor decisions as to what security to buy are based on a company’s financial reports, the reports should be as transparent as possible.
For example, assume two companies have similar debt levels, size, market risk exposure, and earnings. One company operates with transparency concerning its financial reports while the other company runs multiple businesses with complex financial reports. Investors may gravitate to the first company since they can easily understand the company’s fundamentals and risks involved. However, investors who put their money into a company with a complex structure might miss critical financial details that could lead to the company performing poorly and a loss on the investment.
As a result, it’s important that transparency rules are followed by all companies. The critical nature of transparency and consistency to the financial markets is why publicly traded companies on exchanges, such as the New York Stock Exchange (NYSE) are regulated.
Required Transparency :
The U.S. Securities and Exchange Commission (SEC) is the federal government agency responsible for regulating the financial reporting for corporations.
The primary goals of the SEC (Securities & Exchange Commission) are to protect investors by ensuring a fair and orderly functioning of the financial markets. The SEC requires publicly traded companies to report their quarterly financials (called a 10-Q) and their year-end financials (called a 10-K).
Companies must also file an annual report as well as interim reports such as 8Ks, which contain pertinent financial information and developments. Below are some of the financial statements required by the SEC as outlined in their Financial Reporting Manual.
Income Statement :
The income statement shows the profit and loss of a corporation. The statement outlines the revenue on the top line. Operating expenses are listed, such as the cost of goods sold, as well as operating income. Also, other expenses include overhead or selling, general, and administrative expenses (SG&A) as well as interest expenses and taxes paid. The profit or net income is listed at the bottom of the income statement.
Balance Sheet :
The balance sheet shows a corporation’s assets, liabilities, and stockholders’ equity or shareholders’ equity.
Assets can include fixed assets, such as machinery or equipment, while liabilities can include short-term payables and long-term liabilities, such as debt.
Cash Flow Statement :
The cash flow statement measures all of the cash inflows–or credits-as well as any of the cash outflows–or debits–to cash that a company experienced during the period.
The statement of cash flows also shows any investing activities, such as purchases of equipment that would help the long-term by day of the company. Financing activities are also listed, which include any cash inflows or outflows regarding the financing of the company, such as loans, bond issuance, and stock issuance.
Statement of Stockholders’ Equity :
The statement of stockholders’ equity records all the changes to shareholders’ equity, which occurred during that period.
These changes might include any share buybacks, stock issuance, and dividends paid out to shareholders. Dividends are typically cash payments made to investors as a reward for owning the stock. However, dividends can also be paid out as shares of stock.
Statement of Comprehensive Income :
The statement of comprehensive income list other types of income, which can include items such as foreign exchange gains or losses, hedging, and pension activity.
Comprehensive Income Examples :
Examples of comprehensive income include available-for-sale securities, financial investments, pension and retirement plans, and derivative securities.
Importance of Transparency :
Transparency helps reduce uncertainty and wild stock price fluctuations because all market participants can base decisions of value on the same data. Companies also have a strong motivation to provide disclosure because transparency is rewarded by the stock’s performance.
A strong indicator of future growth is how a business invests its money. When an investor cannot find information stating where a company invests, the investor is less likely to invest in the business. Opaque financial statements could hide a company’s debt level, for example, while the business is struggling with insolvency.
Investors should be aware of the underlying investments that compose their portfolios. For example, owning a single stock means investing in one company while owning a mutual fund means investing in a basket of securities or companies. Transparency helps to shows investors how much risk is involved with buying stocks, which can aid in making more informed investment decisions.
Investors should compare their investment returns with those of related securities, benchmarks, and other asset classes to help determine how their investment is performing. If a stock, for example, is underperforming while the industry is doing well, it might be a red flag. In other words, market participants might be concerned about the company’s financial situation, revenue outlook, debt load, or the ability of management to run the company effectively.
Investing limitations, such as liquidity restrictions—meaning it’s difficult to readily buy and sell shares—as well as the fee structure for funds and investments, should be made available.
Example of Transparency :
In February 2016, six groups at a Tyson shareholder meeting spoke with the chair of the board John Tyson about the lack of transparency the company provided on its financial reports.
The International Brotherhood of Teamsters noted that contributions to the American Beef Federation, the National Chicken Council, and state and local lobbying efforts were not readily available. Multiple shareholders noted that Tyson’s chemical spill of acidic wastewater in Monett, Missouri killed over 100,000 fish in the city’s waterways.
Shareholders wanted more information on the company’s planned improvement of water quality in plant areas. Additionally, shareholders asked for an annual report showing plant safety records to ensure the records improve over time. Tyson’s family members controlled the company’s voting rights and did not approve of what was being asked of them. As a result, all six proposals were voted down.
However, Tyson Foods was later fined $2 million in early 2018 by the U.S. Justice Department as originally reported by the Associated Press. As part of the settlement, the company was required to hire an independent auditor to review their environmental compliance procedures, conduct training, and make improvements to their poultry facilities.
As investors, we base our investment decisions largely on the financial statements that each company provides. Therefore, it’s crucial to stick with companies that are transparent about their financial reporting and avoid ones that obfuscate the numbers.
If management isn’t transparent, it’s virtually impossible for investors to be sure about that company’s real risk/reward tradeoff.
Transparency FAQs (frequently asked questions)
What Is Corporate Transparency ?
Corporate transparency is simply the extent to which a company’s actions, financial statements, strategy, and other issues are visible to outside observers.
What Is Price Transparency ?
Price transparency is the extent to which all information regarding a stock’s price (such as its bid prices, ask prices, and trading quantities) is available to traders.
What Does Transparency Mean in Blockchain ?
In the world of blockchain, transparency is an especially important concept. Because of the decentralized nature of Bitcoin’s blockchain, for example, all transactions can be viewed on a public ledger. This makes it difficult for hackers to extract Bitcoins without being traced.
What Does Transparency Mean in Government ?
Government transparency is the extent to which a given government prioritizes honesty and access to information in order to allow for effective public oversight. Transparency is often seen as a major tool for citizens to hold public officials accountable and to combat corruption.
What Is Workplace Transparency ?
Workplace transparency is the extent to which managers and employees of a particular company value openness, communication, and honesty in the workplace
Transparency is the extent to which investors have ready access to required financial information about a company, such as price levels, market depth, and audited financial reports. Investors also require transparency with investment firms and funds surrounding the various fees that’ll be charged to them.
Transparency can also include clarity for consumers regarding the fees that bank charges or the rate that consumers will ultimately pay to their credit card company.
KEY TAKEAWAYS
Transparency is the access and proper disclosure of financial information, such as a company’s audited financial reports.
Transparency also involves clarity with investment firms and funds surrounding the various fees that’ll be charged to clients.
Transparency for consumers includes proper disclosure of bank fees and the interest rate charged by credit card companies.
Transparency helps reduce uncertainty and wild stock price fluctuations because all market participants can base decisions of value on the same data.
Price transparency is the extent to which all information regarding a stock’s price (such as its bid prices, ask prices, and trading quantities) is available to traders.
Clarity: My Favorite Term
Understanding Transparency
Financial decisions are typically made based on an assessment of a financial situation.
Investors analyze a company’s financial statements to determine if the stock is worth buying. On the other hand, consumers choose a bank or investment firm based, in part, on the costs or fees. Adequate disclosure of fees, interest rates, and penalties are important for making sound decisions as to what credit card or loan to apply for as well as what bank account to open or what mutual fund to invest in.
Because investor decisions as to what security to buy are based on a company’s financial reports, the reports should be as transparent as possible.
For example, assume two companies have similar debt levels, size, market risk exposure, and earnings. One company operates with transparency concerning its financial reports while the other company runs multiple businesses with complex financial reports. Investors may gravitate to the first company since they can easily understand the company’s fundamentals and risks involved. However, investors who put their money into a company with a complex structure might miss critical financial details that could lead to the company performing poorly and a loss on the investment.
As a result, it’s important that transparency rules are followed by all companies. The critical nature of transparency and consistency to the financial markets is why publicly traded companies on exchanges, such as the New York Stock Exchange (NYSE) are regulated.
Required Transparency
The U.S. Securities and Exchange Commission (SEC) is the federal government agency responsible for regulating the financial reporting for corporations.
The primary goals of the SEC are to protect investors by ensuring a fair and orderly functioning of the financial markets. The SEC requires publicly traded companies to report their quarterly financials (called a 10-Q) and their year-end financials (called a 10-K).
Companies must also file an annual report as well as interim reports such as 8Ks, which contain pertinent financial information and developments. Below are some of the financial statements required by the SEC as outlined in their Financial Reporting Manual.
Income Statement
The income statement shows the profit and loss of a corporation. The statement outlines the revenue on the top line. Operating expenses are listed, such as the cost of goods sold, as well as operating income. Also, other expenses include overhead or selling, general, and administrative expenses (SG&A) as well as interest expenses and taxes paid. The profit or net income is listed at the bottom of the income statement.
Balance Sheet
The balance sheet shows a corporation’s assets, liabilities, and stockholders’ equity or shareholders’ equity.
Assets can include fixed assets, such as machinery or equipment, while liabilities can include short-term payables and long-term liabilities, such as debt.
Cash Flow Statement
The cash flow statement measures all of the cash inflows–or credits-as well as any of the cash outflows–or debits–to cash that a company experienced during the period.
The statement of cash flows also shows any investing activities, such as purchases of equipment that would help the long-term by day of the company. Financing activities are also listed, which include any cash inflows or outflows regarding the financing of the company, such as loans, bond issuance, and stock issuance.
Statement of Stockholders’ Equity
The statement of stockholders’ equity records all the changes to shareholders’ equity, which occurred during that period.
These changes might include any share buybacks, stock issuance, and dividends paid out to shareholders. Dividends are typically cash payments made to investors as a reward for owning the stock. However, dividends can also be paid out as shares of stock.
Statement of Comprehensive Income
The statement of comprehensive income list other types of income, which can include items such as foreign exchange gains or losses, hedging, and pension activity.
Comprehensive Income Examples
Examples of comprehensive income include available-for-sale securities, financial investments, pension and retirement plans, and derivative securities.
Importance of Transparency
Transparency helps reduce uncertainty and wild stock price fluctuations because all market participants can base decisions of value on the same data. Companies also have a strong motivation to provide disclosure because transparency is rewarded by the stock’s performance.
A strong indicator of future growth is how a business invests its money. When an investor cannot find information stating where a company invests, the investor is less likely to invest in the business. Opaque financial statements could hide a company’s debt level, for example, while the business is struggling with insolvency.
Investors should be aware of the underlying investments that compose their portfolios. For example, owning a single stock means investing in one company while owning a mutual fund means investing in a basket of securities or companies. Transparency helps to shows investors how much risk is involved with buying stocks, which can aid in making more informed investment decisions.
Investors should compare their investment returns with those of related securities, benchmarks, and other asset classes to help determine how their investment is performing. If a stock, for example, is underperforming while the industry is doing well, it might be a red flag. In other words, market participants might be concerned about the company’s financial situation, revenue outlook, debt load, or the ability of management to run the company effectively.
Investing limitations, such as liquidity restrictions—meaning it’s difficult to readily buy and sell shares—as well as the fee structure for funds and investments, should be made available.
Example of Transparency
In February 2016, six groups at a Tyson shareholder meeting spoke with the chair of the board John Tyson about the lack of transparency the company provided on its financial reports.
The International Brotherhood of Teamsters noted that contributions to the American Beef Federation, the National Chicken Council, and state and local lobbying efforts were not readily available. Multiple shareholders noted that Tyson’s chemical spill of acidic wastewater in Monett, Missouri killed over 100,000 fish in the city’s waterways.
Shareholders wanted more information on the company’s planned improvement of water quality in plant areas. Additionally, shareholders asked for an annual report showing plant safety records to ensure the records improve over time. Tyson’s family members controlled the company’s voting rights and did not approve of what was being asked of them. As a result, all six proposals were voted down.
However, Tyson Foods was later fined $2 million in early 2018 by the U.S. Justice Department as originally reported by the Associated Press. As part of the settlement, the company was required to hire an independent auditor to review their environmental compliance procedures, conduct training, and make improvements to their poultry facilities.
The Bottom Line
As investors, we base our investment decisions largely on the financial statements that each company provides. Therefore, it’s crucial to stick with companies that are transparent about their financial reporting and avoid ones that obfuscate the numbers.
If management isn’t transparent, it’s virtually impossible for investors to be sure about that company’s real risk/reward tradeoff.
Transparency FAQs
What Is Corporate Transparency?
Corporate transparency is simply the extent to which a company’s actions, financial statements, strategy, and other issues are visible to outside observers.
What Is Price Transparency?
Price transparency is the extent to which all information regarding a stock’s price (such as its bid prices, ask prices, and trading quantities) is available to traders.
What Does Transparency Mean in Blockchain?
In the world of blockchain, transparency is an especially important concept. Because of the decentralized nature of Bitcoin’s blockchain, for example, all transactions can be viewed on a public ledger. This makes it difficult for hackers to extract Bitcoins without being traced.
What Does Transparency Mean in Government?
Government transparency is the extent to which a given government prioritizes honesty and access to information in order to allow for effective public oversight. Transparency is often seen as a major tool for citizens to hold public officials accountable and to combat corruption.
What Is Workplace Transparency?
Workplace transparency is the extent to which managers and employees of a particular company value openness, communication, and honesty in the workplace
DIRECTION
Positioning statement
For an organisation to achieve and sustain outstanding results that meet or exceed the expectations of its stakeholders it:
• Defines an inspiring Purpose
• Creates a Vision that is aspirational
• Develops a Strategy that is centred on Creating Sustainable Value
• Builds a winning culture.
This Direction setting prepares the way forward for the organisation to be seen as a leader in its ecosystem and well positioned to execute its plans for the future.
Purpose, Vision & Strategy
Positioning statement
An outstanding organisation is defined by a Purpose that inspires, a Vision that is aspirational and a Strategy that delivers.
The Purpose of the organisation:
• Explains why its work is important
• Sets the scene for it to create and deliver sustained value for its stakeholders
• Provides a framework in which it takes responsibility for its contribution to, and impact on, the ecosystem in which it operates.
The Vision of the organisation:
• Describes what the organisation is attempting to achieve in the long-term
• Is intended to serve as a clear guide for choosing current and future courses of action
• Provides, along with the organisation’s Purpose, the basis for setting the Strategy.
The Strategy of the organisation:
• Describes how it intends to fulfil its Purpose
• Details its plans to achieve the strategic priorities and move closer to its Vision.
1.1 Define Purpose & Vision
1.2 Identify & Understand Stakeholders Needs
1.3 Understand the Ecosystem, own Capabilities & Major Challenges
1.4 Develop Strategy
1.5 Design & Implement a Governance & Performance Management System
Organisational Culture & Leadership
Positioning statement
Organisational Culture is the specific collection of values & norms that are shared by people and groups within an organisation that influence, over time, the way they behave with each other and with Key Stakeholders outside the organisation.
Organisational leadership relates to the organisation as a whole rather than any individual or team that provides direction from the top. It is about the organisation acting as a leader within its ecosystem, recognised by others as a role model, rather than from the traditional perspective of a top team managing the organisation.
In an outstanding organisation, leadership is positioned as an activity not a role and leadership behaviours are evident across all levels and parts of the organisation. This role model leadership behaviour inspires others, reinforces, and when necessary, adapts the values and norms, helping to steer Organisational Culture.
An organisation that aspires to be recognised as outstanding, a leader within its ecosystem, achieves success through a focus on the following activities:
2.1 Steer the Organisation’s Culture & Nurture Values
2.2 Create the Conditions for Realising Change
2.3 Enable Creativity & Innovation
2.4 Unite Behind & Engage in Purpose, Vision & Strategy
EXECUTION
Positioning statement
For an organisation to achieve and sustain outstanding results that meet or exceed the expectations of its Stakeholders it is necessary, but not sufficient, for it to:
• Define an inspiring Purpose
• Create a Vision that is aspirational
• Develop a Strategy that is centred on Creating Sustainable Value
• Build a winning culture.
The Direction setting as outlined above, prepares the way forward for the organisation, but it then needs to execute its Strategy effectively and efficiently, ensuring that it:
• Knows who the stakeholders are in its ecosystem and engages fully with those that are Key to its success
• Creates Sustainable Value
• Drives the levels of performance necessary for success today and, at the same time, drives the necessary improvement and transformation if it is to be successful in the future.
Engaging Stakeholders
Positioning statement
Having decided which Stakeholders are the most important to the organisation, i.e. its Key Stakeholders, and independent of the specific groups identified, it is highly likely that there is a degree of similarity in applying the following principles when engaging with Key Stakeholders
An outstanding organisation:
• Identifies the specific types and categories within each of its Key Stakeholder Groups
• Uses its understanding of Key Stakeholders needs and expectations to achieve continued engagement
• Involves Key Stakeholders in deploying its Strategy and Creating Sustainable Value and recognises the contributions they make
• Builds, maintains and further develops the relationship with Key Stakeholders based on transparency, accountability, ethical behaviour and trust
• Works with its Key Stakeholders to develop a common understanding and focus on how, through co-development, it can contribute to, and draw inspiration from, the United Nations Sustainable Development Goals and Global Compact ambitions
• Actively gathers the perceptions of its Key Stakeholders rather than waiting for them to make contact.
• Evaluates its performance in relation to Key Stakeholders needs and decides on the appropriate actions to be taken to help secure its future, as perceived by these Key Stakeholders
Creating Sustainable Value
Positioning statement
An outstanding organisation recognises that Creating Sustainable Value is vital for its long-term success and financial strength.
The organisation’s clearly defined Purpose, enriched by the Strategy, defines for whom the organisation should be Creating Sustainable Value. In most cases, customers, segmented appropriately, are the target group for Creating Sustainable Value, although some organisations might also focus on selected Key Stakeholders within its Society or Business & Governing Stakeholder segments.
An outstanding organisation acknowledges that Key Stakeholder needs may change over time and that it is important to collect and analyse feedback to improve or change their products, services or solutions.
The different elements to Creating Sustainable Value are shown below in a step by sequence. It is recognised that the organisation’s plans for today and the future may well run in parallel or overlap at times, depending on the nature of the organisation’s business.
4.1 Design the Value & How it is Created
4.2 Communicate & Sell the Value
4.3 Deliver the Value
4.4 Define & Implement the Overall Experience
Driving Performance & Transformation
Positioning statement
Now and in the future, an organisation needs to be able to meet the following two important requirements at the same time to become and remain successful.
On the one side, it needs to continue managing successfully the delivery of its current business operations. (“Driving Performance.”)
On the other side, there are constant changes inside and outside the organisation that need to be managed in parallel if it is to remain successful. (“Driving Transformation.”)
The combination of Driving Performance & Transformation confirms the necessity for the organisation to deliver for today while preparing for the future.
Major elements in enabling performance & transformation are innovation and technology, the ever-increasing importance of data, information & knowledge and the focussed use of critical assets and resources.
5.1 Drive Performance & Manage Risk
5.2 Transform the Organisation for the Future
5.3 Drive Innovation & Utilise Technology
5.4 Leverage Data, Information & Knowledge
5.5 Manage Assets & Resources
RESULTS
Positioning statement
What the organisation has achieved in relation to what has been described in the Direction & Execution sections, including the forecast for the future. In practice we find that an outstanding organisation provides results data for:
• Stakeholder Perceptions
• Creating Sustainable Value
• Driving Performance & Transformation
Strategic & Operational Performance
Positioning statement
This criterion concentrates on results linked to the organisation’s performance in terms of:
• The ability to fulfil its Purpose, deliver the Strategy and Create Sustainable Value
• Its fitness for the future
These results are used by the organisation to monitor, understand and improve its overall performance and to forecast the impact this performance will have on both the perceptions of its Key Stakeholders as well as its future strategic ambitions.
In practice, we find that an outstanding organisation:
• Uses both financial and non-financial indicators to help it measure its strategic and operational performance
• Understands the linkages between Key Stakeholder perceptions and actual performance and is able to predict, with a high degree of certainty, how future performance will evolve
• Considers the current and future needs and expectations of its Key Stakeholders when deciding on the most appropriate performance indicators to match its strategic & operational objectives
• Understands the cause and effect relationships that impact on performance and uses the results achieved to stay informed and influence its current Direction & Execution
• Uses the results currently being achieved to forecast its future performance with an expected degree of certainty.
Strategic and Operational Performance indicators, could include, but are not limited to:
• Achievements in delivering its Purpose and Creating Sustainable Value
• Financial Performance
• Fulfilment of Key Stakeholders Expectations
• Achievement of Strategic Objectives
• Achievements in Driving Performance
• Achievements in Driving Transformation
• Predictive Measures for the Future
Stakeholder Perceptions
Positioning statement
This criterion concentrates on results based on feedback from Key Stakeholders about their personal experiences of dealing with the organisation – their perceptions.
These perceptions could relate to past as well as current Key Stakeholders and could be obtained from a number of sources, including surveys, focus groups, ratings, press or social media, external recognition, advocacy, structured review meetings, investor reports and compliments/complaints, including feedback compiled by customer relationship management teams.
In addition to the perceptions that a Key Stakeholder may have of an organisation based on personal experiences, perceptions may also be shaped by the environmental and social impact reputation of the organisation. For instance, the degree to which the organisation is perceived by its Key Stakeholders as contributing successfully to one or more of the United Nations Sustainable Development Goals and Global Compact ambitions.
In practice, we find that an outstanding organisation:
• Knows how successful it is at executing its Strategy to meet the needs and expectations of its Key Stakeholders
• Uses its analysis of past and current performance to predict future performance
• Uses Key Stakeholder Perception Results to stay informed and influence its current Direction and the Execution of its Strategy.
Examples of Key Stakeholder Perception Results and topics to be covered could include, but are not listed in any priority order or limited to:
• Customer Perception Results
• People Perception Results
• Business & Governing Stakeholders Perception Results
• Society Perception Results
• Partners & Suppliers Perception Results
List of improvement-production and industrial areas
Row | Area | scale | AFI | |
| leadership | a1 | Failure to define the ideal and mission of the organization | |
| leadership | a1 | Little evidence on defining appropriate patterns of organizational ethics | |
| leadership | a1 | Failure to review and increase the effectiveness of leadership and action based on the future needs of leadership | |
| leadership | a1 | Lack of motivation and encouragement, empowerment, creativity and innovation through changing organizational structure, applying findings and improving activities | |
| leadership | a1 | Little evidence on motivating and encouraging the development of intra-organizational collaborations | |
| leadership | a1 | Little evidence of personal and active involvement of leaders in improvement activities | |
| leadership | b1 | Lack of evidence on ensuring processes are in place and implemented to measure and improve key outcomes | |
| leadership | b1 | Little evidence of the existence and implementation of a process or processes to motivate, encourage, plan and implement improvements | |
| leadership | c1 | Little evidence of providing and understanding and responding to customer needs and expectations | |
| leadership | c1 | Lack of appreciation for people and working groups within the organization who sincerely cooperate with the organization and are loyal to it. | |
| leadership | d1 | Failure to explain the policies, strategies and plans and short-term and long-term goals of the organization to the company’s employees | |
| leadership | d1 | Little evidence on developing and building the necessary capabilities in employees to participate in improvement activities | |
| leadership | d1 | Lack of timely and appropriate appreciation of individual and group efforts of employees at all levels of the organization | |
| leadership | e1 | Lack of evidence of providing the capital, resources and support necessary to carry out organizational transformations | |
| leadership | e1 | Lack of evidence of managing the preparation and implementation of organizational change plans and managing possible risks inherent in these plans | |
| leadership | e1 | Lack of evidence of leadership in developing organizational transformation plans | |
| leadership | e1 | Failure to ensure the effective implementation of organizational changes and the management of the beneficiaries of these changes | |
| leadership | e1 | Failure to inform employees about organizational developments and explain their reasons to employees and other stakeholders | |
| leadership | e1 | Lack of motivation and review of the effectiveness of organizational changes in the distribution of knowledge and information resulting from it |
List of improvement-production and industrial areas
Row | Area | scale | AFI | |
| Policy and strategy | a2 | Little evidence on gathering and understanding market information | |
| Policy and strategy | b2 | Little evidence to collect and understand the results of internal performance indicators | |
| Policy and strategy | b2 | Lack of evidence on performance reviews of competitors and similar organizations | |
| Policy and strategy | b2 | Lack of evidence on the identification and explanation of economic and anthropological indicators | |
| Policy and strategy | c2 | Lack of balance between the organization’s short-term and long-term plans and emergencies | |
| Policy and strategy | c2 | Lack of different scenarios and programs to identify the possibility of risk for policies and strategies | |
| Policy and strategy | c2 | Lack of evidence regarding the relevance and effectiveness of the organization’s policy and strategy | |
| Policy and strategy | c2 | Failure to identify CSFs | |
| Policy and strategy | c2 | Lack of evidence on reviewing and updating strategies | |
| Policy and strategy | d2 | Lack of evidence on establishing correlation between key processes with the organization’s policy and strategy | |
| Policy and strategy | d2 | Little evidence on the definition of key processes incorporating the demands of the organization’s stakeholders | |
| Policy and strategy | d2 | Little evidence on the effectiveness of reviewing the structure of key processes to realize the organization’s policy and strategy |
List of improvement-production and industrial areas
Row | Area | scale | AFI | |
| personnel | a3 | Little evidence about setting policies, strategies and programs for human resource development | |
| personnel | a3 | Little evidence on ensuring fairness at all stages of employment, including the provision and creation of employment opportunities. | |
| personnel | a3 | Little evidence on the use of employee surveys and other methods of obtaining feedback to improve human resource development policies, strategies and programs. | |
| personnel | a3 | Little evidence on the use of organizational methods of creating creativity | |
| personnel | b3 | Little evidence exists on describing, promoting and developing team learning opportunities in organizations | |
| personnel | b3 | Little evidence about the development of employees’ capabilities through increasing their work experiences | |
| personnel | b3 | Little evidence on the development of team skills | |
| personnel | b3 | Lack of evidence on aligning individual and team goals with organizational goals | |
| personnel | b3 | Failure to review and update individual and team goals | |
| personnel | b3 | Failure to evaluate employees and help them to improve their performance based on these evaluations | |
| personnel | c3 | Little evidence on encouraging and supporting individual and team participation in improvement activities | |
| personnel | c3 | Little evidence on encouraging employees to participate in improvement groups and teamwork | |
| personnel | c3 | Little evidence on determining and identifying information needs |
List of improvement-production and industrial areas
Row | Area | scale | AFI | |
| Partnerships and resources | a4 | Little evidence on the formation of supply chain partnerships based on value added promotion | |
| Partnerships and resources | a4 | Little evidence on ensuring cultural compatibility and knowledge sharing or partner organisations | |
| Partnerships and resources | a4 | Little evidence supports the mutual growth of partners | |
| Partnerships and resources | a4 | Lack of evidence on the creation and support of creative and innovative thinking through partnerships | |
| Partnerships and resources | a4 | Little evidence on creating synergies in joint work to increase added value for the customer and supply chain | |
| Partnerships and resources | b4 | Little evidence on the definition and implementation of financial processes | |
| Partnerships and resources | b4 | Little evidence on the use of financial indicators and mechanisms to ensure the efficiency and effectiveness of the financial resource structure | |
| Partnerships and resources | b4 | Lack of evidence on the management of identifying and determining the probability of occurrence of risk for financial resources | |
| Partnerships and resources | c4 | Little evidence on the use of assets to support policy and strategy implementation | |
| Partnerships and resources | c4 | Little evidence on optimizing energy use | |
| Partnerships and resources | c4 | Little evidence on optimizing material stocks | |
| Partnerships and resources | d4 | Little evidence about identifying and evaluating alternative solutions and technologies with the aim of strengthening the organization’s policy and strategy | |
| Partnerships and resources | d4 | Little evidence on determining technology productivity indicators | |
| Partnerships and resources | d4 | Little evidence of technological innovation and the identification and abandonment of old technologies | |
| Partnerships and resources | e4 | Little evidence about the collection, organization and management of information and knowledge or the purpose of supporting policy and strategy | |
| Partnerships and resources | e4 | Little evidence of assurance and improvement, accuracy, integrity and security of information | |
| Partnerships and resources | e4 | There is little evidence on the cultivation, development and protection of intellectual property of individuals | |
| Partnerships and resources | e4 | There is little evidence on the effective use of acquired knowledge | |
| Partnerships and resources | e4 | Lack of evidence about creating creative and innovative thinking in the organization using relevant information and knowledge sources |
List of improvement-production and industrial areas
Row | Area | scale | AFI | |
| processes | a5 | Little evidence about solving the problems in the organization and external partners with the aim of managing the efficiency of the processes | |
| processes | a5 | Little evidence of measuring processes and setting performance targets for them | |
| processes | b5 | Little evidence on the use of performance results and conclusions and information obtained from learning activities to determine priorities and improvement targets and improved operational methods. | |
| processes | b5 | Lack of evidence about the motivation to express the creative and innovative abilities of the talents of employees, customers and partners with the aim of improvement | |
| processes | b5 | Lack of evidence on establishing appropriate procedures for changes | |
| processes | b5 | Little evidence on ensuring that the changed processes achieve the intended outcomes | |
| processes | c5 | Lack of evidence on the use of customer research results and other types of feedback to determine the needs and expectations of customers and other stakeholders for the organization’s current and future products and services. | |
| processes | c5 | Little evidence on design, research and development of new products and services to determine customer needs and expectations | |
| processes | c5 | Little evidence on the use of creativity and innovation aimed at developing the competitiveness of products and services | |
| processes | c5 | Little evidence on new product development with partners | |
| processes | d5 | Little evidence of delivery of products and services | |
| processes | d5 | Little evidence of providing after-sales services related to products and services when appropriate | |
| processes | e5 | Little evidence on identifying and meeting clients’ everyday communication needs | |
| processes | e5 | Little evidence of research to sustain sales creativity and innovation | |
| processes | e5 | Little evidence exists on customer surveys and the use of these surveys to increase customer satisfaction | |
| processes | e5 | Little evidence about monitoring and monitoring the products sold to determine the level of customer satisfaction and determine the level of desirability of sales processes and after-sales services. |
List of improvement-production and industrial areas
Row | Area | scale | AFI | |
| Customer results Employee results Community results Key performance outcomes | a6 a7 a8 a9
| Lack of evidence on trends, goals, comparisons and reasons for each indicator | |
| Customer results Employee results Community results Key performance outcomes | a6 a7 a8 a9
| Failure to define specific indicators to measure results | |
| Customer results Employee results Community results Key performance outcomes | b6 b7 b8 b9
| Lack of evidence on trends, goals, comparisons and reasons for each indicator | |
iv. 83 | Customer results Employee results Community results Key performance outcomes | b6 b7 b8 b9
| Failure to define specific indicators to measure results |
List of final AFIs
Row | AFI |
i. 1 | The goal and mission of the organization has been finalized, but it has not yet been communicated to the group. |
ii. 2 | The moral patterns and values of organizational culture are not clearly defined. |
iii. 3 | The effectiveness of leadership style has not been reviewed. |
iv. 4 | Little evidence of personal and active involvement of leaders in improvement activities |
v. 5 | Little evidence about the existence of a process to implement and manage organizational changes and determine the effectiveness and review of these changes |
vi. 6 | Little evidence about the existence of a process to identify the best people and work groups in the organization and encourage them in time |
vii. 7 | Absence of a process to determine the performance indicators of the organization and measure these indicators |
viii. 8 | Little evidence of a mechanism for gathering and understanding market and competitor information |
ix. 9 | Lack of evidence about the existence of a process to evaluate the effectiveness of the organization’s policies and strategies and to review and update the strategies based on the results of these evaluations. |
x. 10 | Failure to connect key processes with the organization’s policy and strategies |
xi. 11 | Little evidence on setting policy, strategy and human resources development plans |
xii. 12 | There is little evidence about the existence of a mechanism for recruitment and recruitment of forces in a way that fairness is observed in all stages of recruitment. |
xiii. 13 | Failure to formulate and review human resource development plans using employee feedback obtained through surveys and other methods. |
xiv. 14 | Little evidence on the use of organizational methods of creating creativity |
xv. 15 | Little evidence exists on designing and promoting team and organizational learning opportunities |
xvi. 16 | Failure to review and update individual and team goals and align individual and team goals with organizational goals |
xvii. 17 | Lack of mechanism to evaluate employees |
xviii. 18 | Little evidence on the formation of supply chain partnerships based on value added promotion |
xix. 19 | Little evidence on determining and implementing financial and management processes to identify and determine the probability of occurrence of risk to financial resources |
xx. 20 | Little evidence on optimizing energy use and material inventories |
xxi. 21 | Failure to define technology productivity indicators |
xxii. 22 | Little evidence on measuring processes and setting performance targets for them |
xxiii. 23 | Little evidence about establishing appropriate methods for change |
xxiv. 24 | Little evidence on ensuring that the changed processes achieve the intended outcomes |
xxv. 25 | Little evidence on the use of market (customer) research results and other feedback methods to determine the needs and expectations of customers and other stakeholders from the organization’s current and future products. |
List of final AFIs
Row | AFI |
i. 26 | Little evidence of product design and research and development to meet customer needs and expectations |
ii. 27 | Little evidence on new product development with partners |
iii. 28 | Delivery of products to customers is delayed |
iv. 29 | The daily communication needs of customers have not been identified and provided |
v. 30 | Little evidence of conducting research to sustain creativity and innovation in sales |
vi. 31 | Little evidence exists on customer surveys and the use of these surveys to increase customer satisfaction |
vii. 32 | Lack of evidence on trends, objectives, comparisons and reasons for each of the indicators in the results section |
List of solutions
Row | Approach | Service description | prerequisite | Estimated time |
i. 1 | Final approval of the organization’s strategic plan and its notification to the group | w Approval of the ideal and mission of the organization w Approving the organization’s strategies in different fields w Designing the process of informing and explaining the ideal, mission and goals for employees | ــ | 3 months |
ii. 2 | w Compilation of the ethical statement of the organization w Defining and compiling organizational patterns | w Identifying and formulating the needs and expectations of the company’s stakeholders w Identifying and formulating common organizational values w Defining criteria and indicators for selecting individual, group and unit organizational models w Designing relevant processes to identify superior individuals, groups and units w Designing a mechanism to encourage these people w Designing a mechanism for notifying employees | strategic planning | 3 months |
iii. 3 | Designing the process of determining the effectiveness of the style of leaders and senior, middle and executive managers of the company | w Approval of the ideal and mission of the organization w Approving the organization’s strategies in different fields w Designing the process of informing and explaining the ideal, mission and goals for employees | ــ | 2 months |
iv. 4 | Designing mechanisms and approaches to create an atmosphere of participation for company managers to participate in improvement activities | w Identify and define related methods w Designing mechanisms for forming and holding meetings w Designing incentive and mandatory mechanisms for the personal and active presence of company managers w Designing a mechanism to involve managers in improvement activities and groups | ــ | 3 months |
v. 5 | Designing the transformation management process | w Formation of transformation committee w Holding related trainings w Determining the mechanisms for identifying changes and creating a sense of the necessity and urgency of transformation w Designing mechanisms for determining the vision and transformation strategies w Designing employee empowerment mechanisms w Designing employee empowerment mechanisms w Designing the mechanism of how to create transformations and control its effects w Designing a mechanism for notifying employees and cultural stabilization w Designing and compiling relevant indicators to determine the effectiveness of organizational changes | strategic planning | 4 months |
vi. 6 | Designing the process of identifying and encouraging superior people and work groups | w Defining criteria and indicators of excellence in the organization w Designing the process of identifying and selecting top people and groups w Definition of authority limits in connection with timely encouragement w Define types of encouragement | Defining and compiling organizational models Defining and compiling the mechanism of forming working groups Defining the measurement mechanism | 2 months |
List of solutions
ROW | Approach | Service description | prerequisite | Estimated time |
i. 7 | Designing the organization’s performance measurement mechanism | w Definition of macro performance indicators of the organization according to the prepared strategies w Definition of performance indicators of modules and independent headquarters units according to the prepared strategies w Definition of measuring mechanisms of macro performance indicators of the organization w Definition of mechanisms for measuring performance indicators of modules and independent headquarters units | ــ | 3 months |
i. 8 | Designing a market research mechanism | w Determining the scope of the company’s activity in specific markets w Designing market information collection mechanisms w Designing mechanisms for monitoring and analyzing information w Designing an information mechanism and how to use this information to formulate strategies | ــ | 4 months |
ii. 9 | Establishing the BSC model | w Training, guidance and management of the group of internal consultants for strategic planning with the aim of reviewing and correcting and completing the company’s strategies. w Training, guidance and leadership of the employer’s internal consultants group in the field of balanced scorecards with the aim of evaluating and controlling strategies. w Creating a common point of view among all organizational units w Evaluation and review of strategies through the results of BSC w Continuous improvement based on the results of reviewing strategies | strategic planning | 6 months |
iii. 10 | Revision of processes based on the organization’s strategies | w Developing strategies in different fields w Identify the key processes to implement these strategies w Preparation of the matrix relating the strategies to the processes of the organization w Preparing/revising documentation required for processes | strategic planning | 1 YEAR |
| Developing strategies and programs related to human resources | w Developing related strategies in the field of human resources w Developing action plans to implement these strategies w Determining the needs related to human resources | strategic planning | 3 months |
| Designing human resources recruitment and recruitment mechanisms | w Development of recruiting and hiring processes w Determining selection procedures and professional and scientific interviews of people w Determining inhibiting mechanisms regarding recruitment and employment w Determining the mechanism of employing newly hired employees | Strategic planning and human resource strategies | 6 months |
List of solutions
ROW | Approach | Service description | prerequisite | Estimated time |
| Designing a mechanism for planning and reviewing programs related to human resources | w Designing a personnel survey mechanism w Designing mechanisms for obtaining feedback from personnel w Designing a review mechanism for human resources programs | strategic planning | 3 months |
| Designing appropriate approaches to designing and promoting learning opportunities | w Developing the training process w Designing training courses for employees w Designing training courses for team learning w Developing and implementing appropriate approaches to create organizational learning opportunities | strategic planning The mechanism of forming work teams | 4 months |
iii. 15 | Designing the goal setting process in the organization | w Designing a mechanism for determining organizational goals w Designing a mechanism for determining team goals w Designing a mechanism for determining individual goals w Designing a mechanism to create unity between goals w Designing a mechanism for reviewing and updating goals | strategic planning | 4 months |
iv. 16 | Design of employee performance evaluation system | w Determining indicators and criteria for employee performance evaluation w Designing a personnel evaluation mechanism w Designing the mechanism of data collection and analysis w Designing feedback mechanisms to employees w Designing incentive and punishment mechanisms | ــ | 3 months |
v. 17 | SCM deployment | w | ــ | 6 months |
vi. 18 | Determining strategies and financial strategies | w Developing strategies in the financial field of the company w Determining the required operational plans w Designing the systems required by the financial sector w Establishment of cost accounting system | strategic planning | 6 months |
vii. 19 | Designing the effectiveness mechanism of resource and energy consumption | w Formation of Energy Committee w Developing indicators related to energy consumption w Measuring energy consumption and determining the consumption of each w Examining appropriate and alternative solutions to reduce high energy consumption | ــ | 4 months |
viii. 20 | Establishing a mechanized warehouse system | ـــــــ | ــ | 3 months |
List of solutions
ردیف | Approach | Service description | prerequisite | Estimated time |
i. 21 | Development of process performance measurement mechanism | w Determining appropriate indicators to measure processes w Determining the mechanism of measuring indicators w Determining the process measurement period w Designing a targeting mechanism for processes w Designing the process performance measurement mechanism | Developing processes based on strategies | 4 months |
ii. 22 | SCM and CRM deployment | w Identification of the company’s customers w Determining the mechanism for identifying the needs and expectations of customers w Designing a mechanism for converting customer needs and expectations into product specifications w Designing communication systems with customers w Designing survey systems and getting feedback from customers | ــ | 6 months |
iii. 23 | Designing communication systems with stakeholders | w Identification of the company’s stakeholders w Designing a mechanism to identify the needs and expectations of stakeholders w Designing communication systems with stakeholders w Designing survey systems and obtaining feedback from stakeholders | ــ | 6 months |
iv. 24 | Designing a mechanism for forming working groups and measuring the performance of groups | w Identifying and determining the areas of activity of working groups w Preparation of selection method and formation of working groups w Determining and formulating the method of evaluating the performance and life cycle of working groups w Formation of working groups w Performance evaluation and life curve of working groups w Conducting necessary revisions in the method of formation and activity of working groups | ــ | 3 months |
v. 25 | Designing a mechanism for measuring indicators in the field of BFQM results | w Examining the indicators of the BFQM results area and determining their relationship with the company’s performance w Determining and identifying the methods of measuring these indicators w Reviewing, correcting and obtaining approval and approval of references related to indicators w Finalize indicators and their measurement methods w Preparation of method and system for measuring indicators w Experimental measurement of results according to the designed system w Apply the necessary corrections to the designed method w Finalize the system | ــ | 3 months |
List of solutions
ROW | Approach | Service description | prerequisite | Estimated time |
i. 26 | Designing a mechanism for identifying and prioritizing improvement opportunities | w Providing a clear definition of the method of selecting improvement activities w Determining and identifying indicators for prioritizing improvement activities w Preparing a method (model) for prioritizing improvement activities w Preparation of relevant forms and documents w Experimental implementation of the designed system w Checking and revising and applying the final modification on the designed system | ــ | 3 months |
ii. 27 | Benchmarking | w Providing a clear definition of Benchmarking w Determining the domains and areas of pattern search for the company w Identifying and determining the necessary and efficient references to collect the necessary information for company modeling w Determining pattern search indicators and determining the relevant model to perform pattern search w Perform experimental modeling w Identifying and checking model errors and correcting its revision w Finalize the design model | ــ | 4 months |
iii. 28 | Assessment of technology level | w Determining the objectives of technology assessment w Identification of candidate technologies for evaluation w Determining evaluation criteria w Assessment of technology capabilities w Analyzing the obtained information and providing a suitable solution | ــ | 6 months |
iv. 29 | change management | w | ــ | 6 months |
Suggested solutions for final AFIs
ROW | Suggested solution |
i. 1 | – Final approval of the company’s strategic plan – Compilation of instructions for explaining the goals and mission of the organization for employees |
ii. 2 | – Defining the ethical statement of the organization – Identifying and formulating common organizational values – Definition of excellence patterns – Compilation of instructions for identifying role models and groups and encouraging them |
iii. 3 | – Preparation of instructions including: – Identifying the effectiveness factors of leadership style – Determining the method of measuring the effectiveness of leadership style – Measuring the effectiveness and providing solutions to create and change the style in certain time intervals |
iv. 4 | – Preparation of instructions for holding meetings – Creating mechanisms to encourage leaders to participate in improvement activities – Preparation of instructions for the formation of improvement groups |
v. 5 | – Creation of transformation committee – Formulating the process of creating organizational changes – Determining effectiveness indicators and reviewing developments |
vi. 6 | – Preparation of instructions related to: – Preparation of criteria and indicators of individual and group encouragement – Definition of authority limits in connection with timely encouragement – Definition of types of encouragement |
vii. 7 | – Compilation of key performance indicators of the organization – Compilation of the relevant process – Measuring indicators based on the process and taking appropriate corrective measures |
viii. 8 | – Creation of market research process and mechanism |
ix. 9 | – Preparation of instructions for evaluating the effectiveness of strategies |
x. 10 | – Reviewing the company’s processes and re-identifying them according to the company’s strategies – Preparation of matrix relating strategies to company processes |
Suggested solutions for final AFIs
ROW | Suggested solution |
i. 11 | – Preparing and compiling strategies in the field of human resources – Preparation of long-term and short-term plans – Preparation of instructions, methods and forms and other related matters in this field |
ii. 12 | – Determining the recruitment and hiring strategy in the company – Preparation of instructions on how to recruit and recruit – Considering the inhibitory mechanisms in this regard |
iii. 13 | – Preparation of long-term, medium-term and short-term plans for human resources – Creating feedback mechanisms and employee surveys – Revision of programs at specific time intervals |
iv. 14 | – Determining general policies and developing necessary guidelines – Organizing seminars and courses related to creativity training – Compilation of instructions for awarding the creativity award |
v. 15 | – Development of guidelines related to the development of learning opportunities – – Reviewing the training process and including team skills training |
vi. 16 | – Determining the company’s macro goals – Codification of the manual for setting individual and team goals, including: – Determining indicators of individual and team goals according to the type of activity – Determining individual and team targeting mechanism |
vii. 17 | – Creating an employee performance measurement system |
viii. 18 | – Preparing a list of suppliers and contractors – Evaluation and prioritization of contractors – Preparation of guidelines for calculating added value for each supplier based on factors such as time, quality, cost, etc. |
ix. 19 | – Determining strategies and financial strategies – Implementation of financial mechanisms and systems – Compilation of identification systems and mechanisms – Risks and actions in the event of danger |
Suggested solutions for final AFIs
ROW | Suggested solution |
i. 20 | – Forming the Energy Committee – Developing related indicators and measuring the amount of consumption of each resource – Providing appropriate solutions to reduce the consumption of each – Implementation of mechanized warehouse system in order to optimize material inventory |
ii. 21 | – Defining productivity indicators and measuring indicators and taking corrective measures |
iii. 22 | – Developing process goals according to the impact of each process on the implementation of the company’s strategies – Developing appropriate indicators for measuring processes |
iv. 23 v. 24 | – Preparation of guidelines for appropriate methods of applying changes (change management) |
vi. 25 | – Creating a market research mechanism |
vii. 26 | – Strengthening the R&D sector – Compilation of the research and development process |
viii. 27 | – Identifying and creating a database of all companies that participate in Tuan’s work – Formulating the process of building relationships with partners – Creating communication mechanisms |
ix. 28 | – Feasibility assessment and detailed review of contracts before signing the contract – Revising the planning process |
x. 29 | – Determining the market research mechanism |
xi. 30 | – Development of customer communication process |
xii. 31 | – Creating appropriate communication mechanisms with customers such as questionnaires, interviews, focus groups, etc. |
xiii. 32 | – Compilation of relevant indicators in the result areas of the BFQM model – Measuring indicators and checking their trends – Targeting for all indicators – Determining internal and external comparative bases (Benchmark) – Investigating the reasons for creating these results |
Amir Homayoun Kashanikia
Head of the research center
Leila Jamshidi
Chairman of the Board of Directors
borhan ghotbi
Lead auditor