The INK model and the BSC model are models to measure, analyze and conclude quality in order to control, consolidate and, where necessary, improve quality within the organization in every conceivable area. They are models that keep the monitoring of business activities clear, and that is why they are included in the same article/essay.
The ten-person INK model
The Dutch Quality Institute or the INK model consists of ten fields/focus areas divided into organizational and result areas, namely:
- Leadership – Good management ensures a clear vision, mission and strategy. Internal values and systems are also clearly necessary for long-term success. Management creates frameworks and takes the lead in the direction it wants to take the company.
- Strategy and policy – All activities are carried out taking into account the intended strategy.
- Employee management – Employees are given the space to express themselves and ultimately help them to even flourish. Noble values are emphasized and responsibilities are placed as low as possible in the organization. Involvement is encouraged and both vertical and horizontal communication is optimal. The capabilities of the employees are fully utilized.
- Resource management – Both internal and external resource needs – such as money, knowledge, technology, materials and services – are constantly identified and future needs are anticipated. There is optimal cooperation with suppliers and partners.
- Management of processes – Processes are regularly critically analyzed and bottlenecks are eliminated to create added value for customers and other stakeholders. Primary, supporting and controlling processes are distinguished from each other.
- Customers and partners – It is important to regularly gauge the opinions of customers and partners.
- Employees – It is important to know employees’ opinions about the organization. It is also examined what is done with the knowledge.
- Society – Socially Responsible Chain Management/Entrepreneurship (MVK/CSR). This involves taking the environment, society and social developments into account.
- Board and financiers – It is important that a company has a board and stakeholders who have a clear long-term vision.
- Improve and innovate – It is important that as a company you can quickly adapt to changing circumstances in the modern market. You must also anticipate future developments and therefore be well informed.
The INK model is a direct Dutch translation of the EFQM model (European Foundation for Quality Management). The INK model is useful to determine what the status quo of the company is, and how big the gap is with the situation that the company has in mind. Roughly five phases can be distinguished according to the INK model in which a company can find itself; 1. Product oriented, 2. Process oriented, 3. System oriented, 4. Chain oriented, 5. Total care for quality. The link that the INK model makes with Deming’s PDCA cycle/control loop is interesting. So it is about the plans (leadership and strategy and policy), it is about doing (those who carry out the activities at both operational and management and administrative levels), it is checked whether the objectives have been achieved and act opens up the circle and concerns finding bottlenecks and analysis to see where improvements can be made within the process.
Measuring using the Balanced Score Card (BSC)
The BSC model was developed by Kaplan and Norton in the US. They believed that organizations had to approach things differently and, according to them, the management models of the time should be a thing of the past. The BSC management model uses four perspectives:
- Financial perspective – The question is whether the activities of the companies also yield anything. This can be measured with the KPIs (key performance indicators). Examples of financial KPIs are:
- RTV = Return on equity
- Solvency/debt ratio = Loan capital: Total assets
- Customer and market perspective – Which target groups/segments of the market are served? How are these market groups served? Examples of KPIs in this situation are:
- Customer satisfaction
- Delivery reliability
- Market share
- Perspective of the internal business processes – This concerns the CSFs, the critical success factors. What makes the company different. What gives the company its right to exist? Internal business operations mainly relate to improving existing internal business processes. The future is also anticipated through this model.
Perspective of the learning and growth result The point here is to map the company to see where the company has made progress and especially where there is still room for improvement. Where does the company need to improve?
The BSC seems to simplify itself into a model with four perspectives, but cannot be separated from the vision and strategy. The BSC does not focus on a single facet. A complete set of instruments is offered for top management. Kaplan and Norton compare it to a pilot who only focuses on, for example, the flight altitude. A pilot must know all the buttons, and of course also keep an eye on the fuel, although this seems obvious. According to Kaplan and Norton, the BSC provides a useful basis for top managers, especially in the information age in which we now live. Today’s market environment is more complicated, meaning companies can no longer simply focus on developing innovations and being the first to implement them. The BSC expands on the classic financial management model. In the past, financial measurements were simply enough. BSC combines the time-honored financial measurement method with the modern method to measure performance that is important for the long term. The results of the company can be analyzed from the perspective framework – the four perspectives mentioned earlier in this essay. The BSC is therefore concerned that process analyzes must take place of both a financial and non-financial nature and all employees from top to bottom must have the knowledge and insight into the consequences that their actions have for the organization. Kaplan and Norton state that the BSC model can be compared to a dashboard as a pilot is familiar with it. You can read developments, consider processes and see performance measurements. Conclusions can be drawn from this.