A Capability-Driven Organizational Excellence Index for Measuring Innovation Readiness and Continuous Quality Improvement

Abstract

Companies are becoming more aware that sustainable competitiveness requires a high level of leadership, innovation preparedness, and quality improvement. Most current frameworks on organizational excellence, however, are mostly qualitative assessment frameworks but do not provide a comprehensive quantitative index on which objectively assessing these interrelated dimensions can be conducted. This shortcoming minimizes the benchmarking and strategic decision-making in organizations. In an attempt to fill this gap of research, the current study will offer a Capability-Driven Organizational Excellence Index (CD-OEI) to quantitatively derive the organizational excellence using a leadership-based assessment model. The framework suggested assesses five leadership ability dimensions which include: strategic vision, leadership commitment, decision-making effectiveness, employee empowerment and change leadership. The indices are combined with innovation preparedness and continuing quality enhancement reports to create a holistic organizational excellence index. Quantitative research approach is taken; it entails professional consultation and development of a structured questionnaire in which the indicators are normalized using Min-Max normalization method and criterion weighting with the help of the Best-Worst Method (BWM). The weighted indicators are then summed up to calculate the CD-OEI, which allows systematic evaluation and ranking of organizational performance. The evaluations that will be conducted to prove the proposed model include: the evaluation of experts, comparison with existing organizational excellence models, organization case studies, and sensitivity analysis to investigate the stability and strength of the index with varying weightings. The findings show that organizations with greater leadership potential always score higher in innovation preparedness and constant quality improvement attainment resulting in high organizational excellence scores. Proposed CD-OEI is a practical and reliable decision-support resource to support managers and decision-makers in attaining sustainable business excellence through benchmarking, capability assessment, strategic planning, and continuous improvement of organizations.