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REVIEW
Entering into
its seventh year of history, the Hong Kong Award
for Services: Productivity serves to promote service
productivity and give recognition to organisations that
consistently enhance their service productivity standards.
After very careful and detailed evaluation by assessment
team and central judging panel, the following companies
have stood out from the others to become the winners in
2002.
OBJECTIVE
The Hong
Kong Award for Services: Productivity is one of
the five categories of the Hong Kong Awards for Services.
Organised by the Hong Kong Productivity Council (HKPC),
the Award aims to encourage, promote and give recognition
to Hong Kong organisations who achieve continuous improvement
in Service Productivity for enhancing sustainable growth
and global competitiveness.
BENEFITS
This Award
gives the applicants an opportunity to benchmark with
one another their processes and practices in enhancing
Service Productivity against the Award criteria. The
shortlisted applicants will receive a complimentary assessment
report on their own organisations prepared by the assessment
team.
The Award-winning
organisation(s) have the right to use the winning sign
for promotional and publicity purposes.
An extensive
publicity programme, including award presentation ceremony,
winners showcase, media interviews and many others, will
also be launched to publicise the winners' achievements
in service productivity.
TYPES
OF THE AWARD
Two types of
Award will be presented:
Grand Award
:
Hong Kong Award
for Services: Productivity Grand Award
Merit Award
:
Hong Kong Award
for Services: Productivity Award
While there
is only one winner for the Grand Award, the number of
winners for Award of Merit will be determined by Hong
Kong Productivity Council.
ELIGIBILITY
All organisations
in the service sector with major operations in Hong Kong,
including small and medium-sized companies, are eligible
to enter the Award. The Award is also open to individual
functional units of any organisation, provided that the
principal activity of the unit is sufficiently service-oriented.
HKPC reserves the right to judge the eligibility of all
applicants.
REGULATIONS
All applicants
are expected to abide by whatever decisions made by the
organiser and/or the judging panel, which are final and
binding in all matters relating to the Hong Kong Award
for Services: Productivity.
APPLICATION
DEADLINE
The complete
set of application should include a completed application
form and two copies of 5-page organisational description
in English. All the materials should be delivered to the
following address no later than 16 July 2003:
Hong Kong Productivity
Council
HKPC Building, 78 Tat Chee Avenue
Kowloon, HK
Attn: Secretariat for Service Productivity Award 2003
(Powerhouse Division)
Tel : 2788 5830 / 2788 5811
Fax : 2788 6056
The application
form, assessment procedures and assessment criteria can
also be downloaded from the website for Hong Kong Award
for Services: Productivity at www.sprodaward.hkpc.org.
ASSESSMENT
PROCEDURES
The assessment
of applicants involves a three-stage process. All submissions
of applicants are screened in the first stage. In the
second stage, a detailed assessment on shortlisted applicants
is conducted that will include a site visit to the organization.
The third stage is the final decision regarding award
recipients made by the central judging panel based on
the recommendations of the second stage assessment.
Stage
1 - Organizational Description
An applicant
is required to submit two copies of an organizational
description of NOT MORE THAN 5 PAGES (including
any supplementary information). The organizational description
must respond to the questions listed below organized into
four sections - Organizational Snapshot, How you set the
direction for your organization, Organizational results,
and approaches to improve Service Productivity. The assessment
team will conduct the phase 1 screening based on this
organizational description. Those selected for stage 2
will be asked to write a more comprehensive application
responding to the full criteria.
Please answer
the following questions in a total of 5 pages or less.
Be specific and respond directly to the questions. If
you cannot answer the question, indicate N/A which means
that the data is not available or that the item is not
applicable.
1.
Organizational Snapshot (2 pages)
1.1 What
is your mission?
1.2 What are your sales by year for the
past 3 years?
1.3 What has been your average number of
employees for the past 3 years?
1.4 What are your primary products and services?
1.5 What are your key customer groups and
what % of your revenue comes from each group?
1.6 What are the key factors that cause
customers to purchase your products or services rather
than those of your competitors?
1.7 What is your workforce profile e.g.
number of employees by level (senior management, middle
management, front-line management, non-management);
educational levels,
1.8 What are your key technologies?
1.9 What are your primary facilities and
where are their location?
1.10 What are the principal regulations
which impact your organization (e.g. environmental,
health and safety, accreditation requirements, etc
2.
How do you set the direction for your organization? (1
page)
2.1 How
do you analyze changes in the external environment (e.g.
market, competition, government requlatory policy, new
technologies) that will impact your organization?
2.2 What process do you use to define goals,
strategies and action plans?
3.
How do you measure results? (1 page)
3.1 What
performance indicators do you use to measure results in
each of the following results categories?
- Customer
results
- Financial
results
- Service
productivity results
- Employee
results
3.2
What have been your trends in service productivity performance
for the past three years? (Note: service productivity
refers to the relationship between customer results
(i.e. customer retention, customer referrals, customer
satisfaction, etc.) and total organizational costs).
4.
Approaches to improve service productivity (1 page)
4.1 Briefly
list and describe the primary approaches your organization
has utilized to improve service productivity over the
past three years?
4.2 What is the message that management
attempts to send to its workforce regarding the importance
of service productivity to the future success of the
organization?
Stage
2 - Assessment Criteria
The Award Criteria
comprise a system for achieving service productivity and
business results. The criteria are organized into four
categories as shown in the below Service Productivity
Model. The mode shows how the criteria relate to each
other and form an integrated service productivity management
system. A successful organization will address each of
the elements within this system.
All applicants
selected to proceed to stage 2 should describe how their
organization has addressed each of the categories and
sub-categories listed. Please limit your response to
the criteria to 20 pages including appendices or supporting
material.
2002 Award
Criteria Description
The Assessment
Criteria, that comprise the Service Productivity Model,
are organized into 4 categories: Productivity Leadership,
Customer Focus, Service Productivity Management and Improvement
System, and Results. In reviewing these categories and
sub-categories, the applicant will notice that there is
no category specifically devoted to technology. Yet, technology,
especially information technology is a critical and increasingly
important component of any service productivity system.
The reason that there is not a category specifically devoted
to information technology is that we believe that there
is a role for information technology in all of the criterion
elements. Information technology can be used to enable
and to transform all aspects of the service productivity
system from leadership, to customer focus to the elements
of the management and improvement system (i.e. business
process management, business information systems, human
resource systems, etc.) Therefore, applicants would be
expected to describe how information technology has been
utilized to accomplish the purpose of all or most of the
sections of categories 1-3.
The criteria
in 2003 include an explicit emphasis on factors that make
the organization sustainable from a social responsibility
and environmental (i.e. 'green productivity') perspective.
This theme is reflected in changes in Category 1, Category,
3 and Category 4.
1.0 Productivity
Leadership (150 Points)
1.1 Management
Leadership (80 Points)
How do top managers, the senior executive team and other
managers and supervisors set and deploy the short and
long term direction for the organization? What are the
mission, core values and vision for the organization?
How do senior managers communicate the mission, core values
and vision to employees at all levels? How does the mission
address the importance of service productivity to the
organization? What actions have been taken to establish
an environment that promotes ethical behavior while creating
value for customers, shareholders and employees? What
actions demonstrate how senior leaders personally model
the importance of service productivity efforts within
the organization? How do senior leaders review service
productivity performance and utilize the results of this
analysis to guide decisions and priorities with respect
to service productivity improvement actions? What approaches
are used to assess and improve the effectiveness of the
service productivity leadership process?
1.2 Service
Productivity Strategy (70 Points)
What process does the organization use to develop its
business strategy? What key types of data (e.g. customer,
employee, competitor, public policy, technology, etc.)
are utilized in this planning process? How are the concepts
of service productivity incorporated into the planning
process? What are the organization's short term and long
term goals and objectives? How are the principles of Service
Productivity and the requirements of customers considered
in the processes used to develop, implement and improve
the organizations business strategy and policies? How
does the organization deploy its strategy and assure that
its strategic direction (i.e. goals, objectives, strategies
and action plans) is aligned at all levels in the organization?
(Note: Evidence of the integration of Service Productivity
into the organizations strategy development and implementation
process should come from mission and vision statements,
marketing materials, Productivity Policy, orientation
and training programs, etc.)
2.0 Customer
Focus (150 Points)
2.1 Elements
of Customer Value (100 Points)
What are the primary customer groups or segments? What
is the relative importance of these segments in terms
of revenue and profitability? How will the relative importance
of these customer groups change over the next 5 years?
What approaches are used to identify and define customer
requirements? Give examples of customer requirements for
one or more customer segments. How do the market and customer
monitoring systems allow for the anticipation of changes
in customer requirements by segment? How does the organization
effectively transmit customer requirements information
to decision makers in a timely manner? What specific mechanisms
are utilized to include employees who have direct customer
contact (e.g. sales people, front-line service providers,
billing and collections employees, etc.) as important
sources information regarding customer requirements? How
does the organization measure customer satisfaction? How
is the system for determining customer requirements evaluated
and improved?
2.2 Customer
Communication Systems (50 Points)
What are the principal ways that the organization communicates
with its customers? What is the service promise made to
customers? How does the organization assure that customer
communication systems promise a level of service to customers
that the organization is capable of delivering? How are
the elements of the service promise determined and how
do they relate to customer requirements? How do the elements
of the service promise differ by customer segment? How
is the process capability determined? What is the process
for encouraging, receiving, and analyzing customer comments
(e.g. praise and complaints)? What systems are in place
to assure that customer communications systems are effective?
How is the productivity of marketing programs monitored?
How are customer communication systems continuously improved?
3.0 Productivity
Management and Improvement System (300 Points)
3.1 Business
Process Management (100 Points)
How are work processes identified, documented, analyzed
and, if necessary, redesigned or reengineered to ensure
continuous as well as breakthrough productivity improvements?
How are customer requirements and strategic priorities
reflected in process specifications and process measurements?
What processes are in place for selecting and managing
suppliers to assure that the organization's requirements
are met? What system is used to set priorities for process
improvement and how does that system link to the business
strategy? What tools and techniques are utilized for process
improvement and problem solving? How has information technology
been utilized to enable process improvement? How is the
productivity of business processes monitored and improved?
3.2 Human
Resource Systems (100 Points)
How does the organization align its human resource management
systems with the service productivity strategy? How does
consideration for service productivity impact employee
recruitment and selection, promotion, compensation, recognition
and employee development? How have work systems been designed
to foster service productivity? To what extent has information
technology been integrated into work system design? What
role did employees play in work system design changes?
What information systems are in place to help managers
effectively manage their people? What systems are in place
to identify needs for management and employee development?
How does the organization meet these needs through its
training and career development programs? How has the
organization developed employee skills in process improvement,
customer service, etc. What percentage of the salary budget
is allocated for training and skill development? How are
human resource systems analyzed and improved.
3.3 Business
Information Systems (40 Points)
What are the primary performance indicators that comprise
the corporate "scorecard?" How does the organization
assure that its performance measurement systems are aligned
with its business strategy? How does the organization
assure alignment of its performance measurement systems
throughout the organization? (Note: Major items of concern
are the extent to which measurement systems are aligned
with the factors which create competitive advantage and
reflect a balance between financial and non-financial
(i.e. customer, social responsibility, operational, environmental,
innovation and learning, etc. measurements). Finally,
how is measurement data communicated to decision makers
and used to help the organization improve its performance?
What organizations are used for comparative performance
analysis (e.g. benchmarking, competitive analysis, etc.)?
How were these organizations selected? How are the results
of this comparative analysis used to guide process improvement
activities? Other than comparative analyses, what other
types of performance analysis are used to guide process
improvement? How does the organization establish priorities
regarding its internal information system investments?
How are internal customers of the information systems
of the organization involved in shaping information system
policy and management practices? How are information and
analysis systems improved?
3.4 Communication
Systems (40 Points)
How does the organization communicate with its employees?
What are the key "messages" that senior management
is emphasizing in employee communications in 2003? What
systems are in place to assure that all employees understand
the competitive environment, the company's business strategy,
and priorities for performance improvement? How is information
technology used to facilitate information transfer within
the organization? What systems are in place to facilitate
the flow of information horizontally across functional
groups, between departments, etc.? What web-based tools
and intranet tools are utilized to promote and enable
communications within the organization? How does the organization
utilize electronic tools to improve communication with
suppliers and stakeholders? How does information technology
and communication system design support employees in delivering
value to customers? How do employees communicate their
concerns to middle and senior executive management? How
are human and electronic communication systems analyzed
and improved?
3.5 Knowledge
Management (20 Points)
How does the organization identify, document, analyze,
disseminate and assure utilization of strategic knowledge
(e.g. lessons learned, competitive intelligence, customer
value priorities, etc.)? How does the organization determine
what knowledge is critical to its business strategy? What
are the most critical knowledge areas that will be vital
to the organization's success over the next five years?
What systems exist to acquire or enhance the production
and dissemination of this knowledge? How is information
technology utilized to support knowledge management processes?
What systems exist to promote and encourage knowledge
sharing across business units or functional areas? How
does the organization create a climate of trust that is
essential to the successful transfer of knowledge within
the organization? What evidence exists to show that knowledge
generated in one part of the organization has been successfully
transferred to another part of the organization? Provide
examples.
4.0 Results
(400 Points)
4.1 Service
Productivity Results (200 Points)
4.1.1 Customer
Value Results (100 points)
The first element of service productivity is the customer
value delivered. What quantitative evidence demonstrates
the results of the organization's efforts to deliver improved
customer value? What have been the trends in customer
value over the past 3 years? How do the customer value
results compare with those of competitors and benchmarks?
How does the organization determine that the customer
value results were caused by its improvement strategies
and actions?
(Note: Measures of customer value can be either measures
of customer behavior or measures of customer perception.
Measures of customer behavior include repeat business,
retention, referral of new customers, compliments, market
share, etc. Measures of customer perception typically
are responses to a survey of customer satisfaction, perceived
customer value, expressed loyalty, or intent to repurchase,
etc.)
4.1.2 Efficiency
Results (100 points)
The second element
of service productivity is the cost to deliver the outputs
that provide customer value. Improvements in cost can
be considered to be improvements in efficiency, i.e. outputs
produced in relation to the resources required to deliver
them. Efficiency or unit cost improvements can occur from
either resource reductions in relation to outputs or elements
of service delivered or from improved utilization that
yields a proportionately greater output level or yield
in relation to an increased investment in units of resource
input. What quantitative evidence demonstrates that the
organization has achieved efficiency improvements in the
resources used to deliver customer value? These resources
may be people (e.g. paid work hours, numbers of people,
etc.), materials (e.g. physical quantity or cost of materials
utilized, etc.), capital (e.g. depreciation of capital
assets, reduction of inventory, etc.), energy (e.g. physical
units of energy, energy cost, etc.) or information (e.g.
advertising expense, data mining expense, etc.) Evidence
of efficiency improvements at the overall organization
level is preferable to measures at the departmental or
work process level.
4.2 Human
Resource Results (75 Points)
What have been the trends for the past three years in
employee satisfaction, commitment to and confidence in
the organization and its future? What have been trends
in employee safety and wellness? What has been the organization's
employee turnover rate over the past three years by employee
class? What evidence exists to show improved employee
capability and performance? What results indicate changes
in work design and work system improvements (e.g. supervisor
to employee ratios, job enrichment, changes in job classifications,
shifts in authority and responsibility, etc.)? How do
the human resource results compare to those of competitors
and benchmarks?
4.3 Operational,
Environmental and Social Responsibility Results (50 Points)
What have been the trends in the key operational performance
indicators (e.g. quality, process efficiency, reliability,
cycle time, waste, accuracy, etc.)? over the past three
years? What have been trends in measures of environmental
performance (e.g. reduced emissions, waste elimination,
recycling, energy reduction, % energy from renewable sources,
customer or supplier waste reduction, % of organization
covered by environmental management system, etc.) over
the past three years? What have been the trends in social
responsibility performance (e.g. resources devoted to
assisting the community, % employees trained in ethical
practices, % suppliers covered by company ethics policies,
no citizens positively impacted by community services,
evidence of legal compliance through improved internal
or external audit performance, etc.)? How do these operational,
environmental, and social responsibility measures compare
with those of competitors?
4.4 Financial
Results (75 Points)
What have been the trends in financial performance for
the organization over the past three years? How do the
financial performance indicators and the operational performance
indicators relate to those of competitors or benchmark
organizations?
(Note: Provide quantitative evidence of the
financial performance of the organization over the past
3 years and show how that performance is caused by organizational
improvement actions. Applicants are required to produce
the latest financial statements that can be disclosed.
Financial results of interest are percentage changes in
sales, profits, employment levels, asset turnover, operating
ratio, etc. The assessment team will protect confidentiality
of financial information.)
Stage 3
- Final Judging
During the final judging process, a certain number of
finalists will be recommended to the central judging panel
to make the final decision.
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