The EFQM model
Posted by isoeasy on May 12, 2006
The European Foundation for Quality Management (EFQM) model helps organizations to establish an appropriate management system to set them on the path to excellence. The model explains gaps in performance and helps identify improvements. It is a non-prescriptive framework underpinned by so-called 'fundamental concepts':
* results orientation
* customer focus
* leadership and constancy of purpose
* management by processes and facts
* people development and involvement
* continuous learning, innovation and improvement
* partnership development
* public responsibility.
The EFQM model is based on the premise that excellent results with respect to performance, customers, people and society are achieved through partnerships, resources and processes.
* to develop mission, vision and values;
* to be role models of a culture of excellence;
* to be personally involved in developing, implementing and improving the organization's management system;
* to be involved with customers, partners and representatives of society;
* to motivate, support and recognize people in the organization.The following criteria determine excellence in policy and strategy:
* based on present and future needs and expectations of all stakeholders;
* based on information for performance measurement, research, learning and creativity related activities;
* developed, reviewed and updated continuously;
* deployed through a framework of key processes;
* communicated and implemented.
People play a key role. According to EFQM:
* Human resources should be carefully planned, managed and improved.
* People's knowledge and competencies should be identified, developed and sustained.
* People must be involved and empowered.
* There should be dialogue between people and the organization.
* People should be rewarded, recognized and cared for.
* external partnerships
* buildings, equipment and materials
* information and knowledge.
* are systematically designed and managed;
* are innovatively improved to meet customer demands and increase value;
* produce well-designed and developed products and services that meet customer needs and expectations;
* produce, deliver and service products and services;
* are those that manage and enhance customer relationships.
In EFQM, customer results, people results and society results aremeasured in:
* perception measures
* performance indicators.
What the organization is achieving in relation to its planned performance are collectively called key performance results:
* key performance outcomes
* key performance indicators.
Additionally, a feedback loop from performance areas to create objectives in organizational areas is essential to establish a co-ordinated learning effect. Performance indicators can be generated to measure the effect of the improvements.
Often used by managers in Europe, the EFQM model is a recognized tool for professionalization of the planning and control cycle. The EFQM model was co-developed by top managers with such companies as Renault, Philips and Ciba Geigy. Use of the model enables core elements for managing an organization to be easily structured, analysed, assessed and improved. The EFQM website is a valuable source of information on the use of the EFQM model for self-evaluation and as a benchmarking model.strategic decision making. It is, however, not a prescriptive model at all, having been designed as a tool to assist with management analysis. Rather than helping to select the appropriate strategic direction, the EFQM model simply helps to realize improvements that will ultimately lead to achievement of the stated goals. In reality, the use of the EFQM model is often limited to analysis and action, with far too little attention paid to the link between 'what we do' and 'is the result what we want?'.