Pareto Analysis of MBNQA

In respect of the Malcolm Balridge (MBNQA) framework, an analysis of the relative importance of the various sub-categories (as reflected by the points allocated out of 1000 to a specific category) is quite revealing. This analysis can be performed by preparing a Pareto Chart of the 18 sub-categories (under the 7 categories) by arranging them in the descending order of allocated points.

It is also quite interesting to draw an analogy to understand this. Assuming a company to be a bus, what are the top three factors that are required to make the journey of the bus to be labeled as a “success”? Here are those three factors, strictly in the order given:

• The bus itself - the condition of its engine, other mechanical components, seats, etc.
• The driver of the bus - how skillful he is in driving
• The passengers who board the bus - the willingness of the passengers to take the next ride, the perception of timeliness and comfort they carry

It is clear from the above analysis that MBNQA also does take these three as the top 3 factors (in terms of relative importance) which are explained below. Note: It is assumed that the relative importance of the sub-categories within a category is strictly in the order in which they appear with the main category.

• Product Outcomes - Whatever else you may do as a company, if your products and services are weak, you will be engaged in a loosing battle. The worth of a company as reflected in its price in the stock market (despite the associated volatility based on sentiments) cannot be sustained if the back-end products and services model is weak and volatile (Remember the dot-com bubble burst, the lack of a “real” product was the failure point)
• Senior Leadership -They act as drivers and like skilled bus drivers must be able to take the right direction, steer the bus towards the destination and most importantly, be able to undertake course corrections on an ongoing dynamic basis
• Customer-focused Outcomes -The exposure of a company’s products and services to its customers is the “moment of truth”. Making customers happy first time and every time ensures ongoing revenue flow. Customer must have a sense of value-for-money for a company’s offerings to continue to be repeat customers

As a business excellence framework, MBNQA is structured in probably the best possible manner. The only place where MBNQA could be calibrated further is to give more points to “Customer-focused Outcomes”. After all, if the customers stop buying a company’sproducts and services, that company will inevitably cease to exist!