Measurement of business excellence

A structural model has been used for the measurement of business excellence where 14 interrelated latent variables are introduced. The model is based on well-established theories and approaches on business excellence behaviour and draws on currently used various quality dimensions. A typical example of business excellence index (BEI) for a group of companies is given using statistical methods. The BEI presented in this paper will allow the organization to compare different areas of its business both directly and over time. A high score of BEI achieved by this method will encourage the organization to apply for the quality award.