EFQM excellence model

The EFQM excellence model is a non-prescriptive business excellence framework for organizational management, promoted by the European Foundation for Quality Management (EFQM) and designed to help organizations to become more competitive.

Regardless of sector, size, structure or maturity, organizations need to establish appropriate management systems to be successful. The EFQM excellence model is a tool to help organizations do this by measuring where they are on the path to excellence, helping them understand the gaps, and promoting solutions.

History

A number of research studies have investigated the correlation between the adoption of holistic models such as the EFQM excellence model, and improved organizational results. The majority of such studies show a positive link. One of the most comprehensive of these was carried out by Vinod Singhal of the Georgia Institute of Technology and Kevin Hendricks of the College of William and Mary.[1]

Purpose

The EFQM model provides a framework allowing organisations to determine their current "level of excellence" and where they need to improve their efforts. The model also helps to ensure that business decisions incorporate the needs of all stakeholders and are aligned with the organisation's objectives.

The EFQM model acts as a common reference. It provides its users with a set of performance improvement tools in order for them to achieve and sustain business success. The model is regularly reviewed to incorporate new ideas, concepts and learning. The last revision was published in 2013.[2]

The EFQM model is used to obtain a complete view of the organizational performance and to understand the relations of cause and effects between what organisations do and the results they achieve.

Components

The model consists of three components:[3]

  • Eight core values or key management principles that drive sustainable success[4]
    1. Adding value for customers
    2. Creating a sustainable future
    3. Developing organisational capability
    4. Harnessing creativity and innovation
    5. Leading with vision, inspiration and integrity
    6. Managing with agility
    7. Succeeding through the talent of people
    8. Sustaining outstanding results
  • Nine criteria, separated into five "enablers" (leadership, people, strategy, partnerships and resources, and processes, products and services) and four "results" (people, customer, society, and business results)[5][6]
  • RADAR logic,[7] continuous improvement cycle used by EFQM. It was originally derived from the PDCA cycle.
    • Determine the Results aimed at as part of the strategy
    • Plan and develop a set of Approaches to deliver the required results now and in the future
    • Deploy the approaches in a systematic way to ensure implementation
    • Assess and Refine the deployed approaches based on monitoring and analysis of the results achieved and ongoing learning

Application

The model is used by about 30000 organisations across Europe.[8] In recent years, more and more countries started implementing the Model, especially across Middle East and South America.

All European organisations, both in the public and private sectors, are facing new challenges. The increasing pressure to compete on a global stage with limited resources means we all have to work together to secure our future prosperity, and that of generations to come ... The EFQM Excellence Model provides a framework that encourages cooperation, collaboration and innovation that we will need to ensure this goal is achieved

— Herman Van Rompuy[8]

EFQM Excellence Award

The EFQM Excellence Award is run annually by EFQM. It is designed to recognize organizations that have achieved an outstanding level of sustainable excellence, based on assessment against the EFQM Excellence Model.[9]

See also

References

  1. ↑ K. Hendricks & V. Singhal (1996). "Quality Awards and the Market Value of the Firm: An Empirical Investigation". Management Science. Georgia Tech. 42 (3): 415–436. doi:10.1287/mnsc.42.3.415. We note that the abnormal returns generated by the quality award winning announcements provide a lower bound for the impact of implementing an effective quality award improvement program. Our results show that the stock market reacts positively to quality award announcements
  2. ↑ EFQM Excellence Model 2013, multiple authors, EFQM
  3. ↑ http://www.efqm.org/the-efqm-excellence-model
  4. ↑ "Fundamental Concepts". EFQM. 9 July 2013. Retrieved 2017-01-01.
  5. ↑ "Model Criteria". EFQM. 7 May 2013. Retrieved 2017-01-01.
  6. ↑ ManagementMania. "EFQM Excellence Model". ManagementMania.com. Retrieved 2017-01-01.
  7. ↑ "RADAR Logic". EFQM. 7 May 2013. Retrieved 2017-01-01.
  8. 1 2 EFQM (2012). "Revised EFQM Model to Help Increase Europe's Competitiveness". www.prnewswire.com. Retrieved 2017-01-01.
  9. ↑ "Kostka in Calabria awarded". Retrieved 1 January 2017.
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