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 behaviou r 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 organi zation to compare different areas of its business both directly and over ti me. A high score of BEI achieved by this method will encourage the organiza tion to apply for the quality award.