EFQM Excellence Model

Definition

The EFQM Excellence Model is a comprehensive framework used to assess and improve organizational performance. It provides a holistic approach to managing and delivering sustainable value for stakeholders by evaluating an organization's capabilities and results.

5 Must Know Facts For Your Next Test

1. The EFQM Excellence Model is based on nine criteria, with five 'Enablers' (Leadership, Strategy, People, Partnerships & Resources, and Processes, Products & Services) and four 'Results' (Customer Results, People Results, Society Results, and Business Results).
2. The model emphasizes the importance of a results-oriented approach, where an organization's performance is evaluated based on the achievement of its strategic objectives and the satisfaction of its stakeholders.
3. The EFQM Excellence Model promotes a holistic view of organizational performance, recognizing the interdependence between different aspects of the organization, such as leadership, strategy, and processes.
4. The model is used by organizations to identify their strengths and areas for improvement, and to develop and implement effective strategies for achieving sustainable excellence.
5. The EFQM Excellence Model is widely used in Europe and has been adopted by organizations in various sectors, including manufacturing, service, and public sector.

Review Questions

• Explain how the EFQM Excellence Model can be used to measure and evaluate strategic performance.
  • The EFQM Excellence Model provides a comprehensive framework for measuring and evaluating an organization's strategic performance. By assessing the organization's capabilities (Enablers) and the results it achieves (Results), the model helps identify areas of strength and opportunities for improvement. The Enabler criteria, such as Leadership, Strategy, and Processes, Products & Services, evaluate the organization's approach to implementing its strategic objectives. The Results criteria, including Customer Results, People Results, and Business Results, measure the organization's success in achieving its strategic goals and meeting the needs of its stakeholders. This holistic assessment allows organizations to develop and refine their strategies to drive sustainable performance improvements.
• Analyze how the EFQM Excellence Model's emphasis on a results-oriented approach can influence an organization's strategic performance measurement and evaluation.
  • The EFQM Excellence Model's focus on results-orientation is a key aspect that can significantly impact an organization's strategic performance measurement and evaluation. By emphasizing the achievement of strategic objectives and the satisfaction of stakeholders, the model encourages organizations to align their processes, resources, and capabilities to deliver tangible results. This results-driven approach prompts organizations to develop robust performance measurement systems that track the attainment of their strategic goals, as reflected in the Results criteria of the model. Furthermore, the model's emphasis on continuous improvement and the interdependence between Enablers and Results motivates organizations to continuously evaluate and refine their strategies, ensuring that their performance measurement and evaluation processes remain relevant and effective in driving sustainable excellence.
• Evaluate how the EFQM Excellence Model's holistic perspective on organizational performance can contribute to the effective measurement and evaluation of strategic performance.
  • The EFQM Excellence Model's holistic approach to organizational performance is a crucial factor in the effective measurement and evaluation of strategic performance. By considering the interconnected nature of various organizational aspects, such as leadership, strategy, processes, and results, the model encourages a comprehensive assessment that goes beyond traditional financial or operational metrics. This holistic perspective enables organizations to identify the underlying drivers of their strategic performance and understand the complex relationships between different elements of the organization. As a result, the EFQM Excellence Model supports the development of balanced and integrated performance measurement systems that capture the multifaceted nature of strategic performance, including customer satisfaction, employee engagement, societal impact, and financial outcomes. This holistic approach helps organizations make informed decisions, allocate resources effectively, and implement strategies that drive sustainable excellence and long-term success.

Related terms

Organizational Excellence: The ability of an organization to achieve and sustain superior performance that meets or exceeds the expectations of all its stakeholders.

Business Excellence: The pursuit of excellence in all aspects of an organization's operations, processes, and management practices to achieve outstanding results.

Continuous Improvement: The ongoing effort to enhance an organization's products, services, and processes to improve efficiency, effectiveness, and customer satisfaction.