EFQM Excellence Modelextranet.saipapress.com/.../EFQM/.../EXellence.pdf · The European Foundation...

EFQM Excellence Model

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The European Foundation for Quality Management (EFQM®) is a membershipbased not for profit organisation, created in 1988 by fourteen leading Europeanbusinesses, with a Mission to be the driving force for sustainable excellence inEurope and a Vision of a world in which European organisations excel.

EFQM has promoted the concept of partnership with similar National organisationsin Europe to help promote sustainable excellence in European organisations. TheseNational organisations work with EFQM to promote the EFQM Excellence Model.Contact details for our partners can be found at http://www.efqm.org/partnership_ dis-tribution/npo_details.htm

By January 2003, EFQM membership had grown to around 800 organisationsfrom most European countries and most sectors of activity. Together with theNational organisations the membership network runs to thousands of organisationswith several million individuals employed in those organisations.

In addition to being the owner of the EFQM Excellence Model and managing The European Quality Award, EFQM also provides a portfolio of services for itsmembers.

© 1999 - 2003 EFQMNo part of this publication may be reproduced, stored ina retrieval system,or transmitted in any form or by any means(be this electronically, mechanically, through photocopyor recording, or otherwise) without either the priorwritten permission of, or a licence permitting restrictedcopying and use for a third party, from the publisher.V2.1/En

The European Foundation for Quality Management

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1. The need for a Model 4

2. Benefits from adopting the Model 5

3. The Fundamental Concepts and The EFQM Excellence Model 7

4. The Excellence Model 12

4.1. Overview4.2. Model Contents and Structure4.3. Model Criteria4.4. Red Threads Through the Model

5. RADAR 27

5.1. RADAR Logic5.2. The RADAR Scoring Matrix©

6. Glossary of Terms 32

7. Further Help 34

8. Acknowledgements 35

Contents

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Regardless of sector, size, structure or maturity,to be successful, organisations need to establishan appropriate management framework.The EFQM Excellence Model is a practicaltool that is used by organisations in a numberof ways:

As a tool for Self-Assessment by measuringwhere they are on the path to excellence;helping them understand the gaps; andthen stimulating solutions;As the basis for a common vocabulary andway of thinking about the organisationwhich is shared across all functions;As a framework for positioning existinginitiatives, removing duplication andidentifying gaps;As a structure for the organisation’s mana-gement system.

EFQM, together with its partner organisa-tions, is committed to researching andupdating the Model with the practical andacademic inputs from thousands of organi-sations both within and outside of Europe.In this way we ensure the Model remainsdynamic and in line with current managementthinking.

1. The Need for a Model

Perhaps the most frequently asked questionabout adopting the Model is, ‘How do youknow it works’. One of the most convincinganswers to this comes from a piece ofextensive research carried out in 2000 byDr. Vinod Singhal of the Georgia Instituteof Technology and Dr. Kevin Hendricks ofthe University of Western Ontario. A summary of that research is presentedhere and a longer paper on their work ison the EFQM website at www.efqm.org

Quality Award Winners also Improve FinancialPerformanceA recent study by Dr. Vinod Singhal of theGeorgia Institute of Technology and Dr.Kevin Hendricks of the University ofWestern Ontario provides hard evidencethat the effective implementation of TQMprinciples impacts bottom-line businessresults. The 5 year study of more than 600quality award winners showed that, as awhole, they experienced significant impro-vement in the value of their common stock,operating income, sales, return on sales,employment, and asset growth.

Drs. Singhal and Hendricks compared thefinancial performance of nearly 600 - qualityaward winning firms against a controlsample of firms similar in size and operatingin the same industries. Both groups weretracked over a five-year period starting oneyear before to four years after the award winnerswon their first award. The award winnersaveraged significantly larger increases inseveral measures of financial performancethan the control group (Figure 1). Awardwinners experienced a 44% higher stockprice return, a 48% higher growth in operatingincome and 37% higher growth in salescompared to the control group. Award winnersalso outperformed the controls on return onsales, growth in employees, and growth in assets.

One interesting finding was that firms whowin awards based on models such as theBaldrige or the European Quality Award orother independent quality awards, experiencedbetter results than those winning supplierawards only (Figure 2). After adjusting for theperformance of the controls, the independentaward winners averaged a 61% increase instock returns, 73% increase in operatingincome, 33% increase in sales, 17% increasein return on sales, 25% increase in employmentand 49% increase in assets - all of which arewell above the increases experienced byfirms winning supplier awards only. Thisevidence provides a compelling case for whyfirms should use criteria such as theEuropean Excellence Model for planning,training and assessment, and why variousstate and federal agencies should supportsuch award initiatives.

There is a common perception among smallerfirms that performance excellence models aremore applicable to larger firms. The findingsindicate that this perception may not be true.After adjusting for the performance of thecontrols, smaller award winners averaged a63% increase in operating income, 39%increase in sales, 17% increase in return onsales, 21% increase in employment, and

42% increase in assets - all of which are wellabove the increases experienced by the largeraward winners (Figure 3). Similarly the findingsindicated that lower capital-intensive awardwinners do significantly better than highercapital-intensive award winners (Figure 4).

In summary, the results of this study indicatedthat effective adoption of performanceexcellence principles embedded in variousquality award criteria do make good econo-mic sense. To obtain a copy of this studyvisit the EFQM website at www.efqm.org.Dr. Singhal can be reached at [email protected] or by phone at 404-894-4908 in USA.

2. Benefits from adopting the Model 5

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3.1. The Concepts as a basis for Excellence

The Fundamental Concepts of Excellenceare applicable to all organisations regardlessof sector, industry or size and underpin theEFQM Excellence Model.

Full details on these Concepts can be foundin our brochure “The Fundamental Conceptsof Excellence,” but here we show the definitionsand descriptions of each for easy reference.

Results Orientation

The ConceptExcellence is achieving results that delightall the organisation’s stakeholders.

How the Concept is put into practiceIn the fast changing environment that istoday’s world, excellent organisations are agile,flexible and responsive as stakeholder needsand expectations change, often frequentlyand quickly. Excellent organisations measureand anticipate the needs and expectations oftheir stakeholders, monitor their experiencesand perceptions, and monitor and reviewthe performance of other organisations.Information is gathered from both currentand future stakeholders. This information isused in order to set, implement and reviewtheir policies, strategies, objectives, targets,measures and plans, for the short, mediumand longer term. The information gatheredalso helps the organisation to develop andachieve a balanced set of stakeholder results.

Customer Focus

The ConceptExcellence is creating sustainable customervalue.

How the Concept is put into practiceExcellent organisations know and intimatelyunderstand their customers. They understandthat customers are the final arbiters of productand service quality. They also understandthat customer loyalty, retention and marketshare gain is maximised through a clearfocus on the needs and expectations of bothexisting and potential customers. They areresponsive to those customers’ present needsand expectations. Where appropriate theysegment their customers to improve theeffectiveness of their response. They monitorcompetitor activity and understand theircompetitive advantage. They effectivelyanticipate what customers’ future needs andexpectations will be and act now in order tomeet and where possible exceed them. Theymonitor and review the experiences and perceptions of their customers and wherethings go wrong they respond quickly andeffectively. They build and maintain excellentrelationships with all their customers.

3. The Fundamental Concepts of Excellence and the EFQM Excellence Model

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Leadership and Constancy of Purpose

The ConceptExcellence is visionary and inspirational leadership, coupled with constancy of purpose.

How the Concept is put into practiceExcellent organisations have leaders who setand communicate a clear direction for theirorganisation. In doing so they unite andmotivate other leaders to inspire their people.They establish values, ethics, culture and agovernance structure for the organisationthat provides a unique identity and attracti-veness to stakeholders. Leaders at all levelswithin these organisations constantly driveand inspire others towards excellence and inso doing display both role model behaviourand performance. They lead by example,recognising their stakeholders and workingwith them on joint improvement activity.During times of turbulence they display aconstancy of purpose and steadiness thatinspires the confidence and commitment oftheir stakeholders. At the same time theydemonstrate the capability to adapt and realignthe direction of their organisation in thelight of a fast moving and constantly changingexternal environment, and in so doing carrytheir people with them.

Management by Processes and Facts

The ConceptExcellence is managing the organisationthrough a set of interdependent and interrelatedsystems, processes and facts.

How the Concept is put into practiceExcellent organisations have an effectivemanagement system based upon, and designedto deliver, the needs and expectations of allstakeholders. The systematic implementationof the policies, strategies, objectives andplans of the organisation are enabled andassured through a clear and integrated set ofprocesses. These processes are effectivelydeployed, managed and improved on a day-to-day basis. Decisions are based on factuallyreliable information relating to current andprojected performance, process and systemscapability, stakeholder needs, expectationsand experiences, and the performance ofother organisations, including, whereappropriate, that of competitors. Risks areidentified based on sound performancemeasures and effectively managed. Theorganisation is governed in a highly profes-sional manner, meeting and exceeding allcorporate external requirements. Appropriateprevention measures are identified andimplemented, inspiring and maintaininghigh levels of confidence with stakeholders.

People Development and Involvement

The ConceptExcellence is maximising the contributionof employees through their developmentand involvement.

How the Concept is put into practiceExcellent organisations identify and understandthe competencies needed, both now and inthe future, in order to implement the orga-nisation’s policies, strategies, objectives andplans. They recruit and develop their peopleto match these competencies and activelyand positively support them throughout.Personal development is promoted and sup-ported allowing people to realise and unlocktheir full potential. They prepare people tomeet and adapt to the changes required ofthem both in terms of operational changesand personal capabilities.

They recognise the increasing importance ofthe intellectual capital of their people anduse their knowledge for the benefit of theorganisation. They seek to care, reward andrecognise their people in a way that buildstheir commitment and encourages theirloyalty to the organisation. They maximisethe potential and the active involvement oftheir people through shared values and a culture of trust, openness and empowerment.They utilise that involvement to generateand implement ideas for improvement.

Continuous Learning, Innovationand Improvement

The ConceptExcellence is challenging the status quo andeffecting change by using learning to createinnovation and improvement opportunities.

How the Concept is put into practiceExcellent organisations continuously learn, bothfrom their own activities and performanceand from that of others. They rigorouslybenchmark, both internally and externally.They capture and share the knowledge oftheir people in order to maximise learningacross and within the organisation. There isan openness to accept and use ideas from allstakeholders. People are encouraged to lookbeyond today and today’s capabilities. Theyare careful to guard their intellectual propertyand to exploit it for commercial gain, whereappropriate. Their people constantly challengethe status quo and seek opportunities forcontinuous innovation and improvementthat add value.

Partnership Development

The ConceptExcellence is developing and maintainingvalue-adding partnerships.

How the Concept is put into practiceExcellent organisations recognise that intodays constantly changing and increasinglydemanding world, success may depend onthe partnerships they develop. They seekout, and develop, partnerships with otherorganisations. These partnerships enablethem to deliver enhanced value to their stakeholders through optimising core com-petencies. These partnerships may be withcustomers, society, suppliers or even competitorsand are based on clearly identified mutualbenefit. Partners work together to achieveshared goals, supporting one another withexpertise, resources and knowledge andbuild a sustainable relationship based onmutual trust, respect and openness.

Corporate Social Responsibility

The ConceptExcellence is exceeding the minimum regulatoryframework in which the organisation operatesand to strive to understand and respond to theexpectations of their stakeholders in society.

How the Concept is put into practiceExcellent organisations adopt a highly ethicalapproach by being transparent and accountableto their stakeholders for their performance as aresponsible organisation. They give considerationto, and actively promote, social responsibilityand ecological sustainability both now andfor the future. The organisation’s CorporateSocial Responsibility is expressed in its valuesand integrated within the organisation.Through open and inclusive stakeholderengagement, they meet and exceed theexpectations and regulations of the localand, where appropriate, the global community.As well as managing risk, they seek out andpromote opportunities to work on mutuallybeneficial projects with society inspiring andmaintaining high levels of confidence withstakeholders. They are aware of the organi-sation’s impact on both the current and futurecommunity and take care to minimise anyadverse impact.

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3.2. Linking the Fundamental Concepts and the EFQM Excellence Model

Being the basis for the EFQM Excellence Model, each Fundamental Concept has a number of direct and indirect links to differentCriterion and criterion parts. In addition the Concepts can themselves have an impact on each other. The table below shows some of thesignificant links and is supported by an explanation of the links for each Concept.

Results OrientationThis concept links explicitly to the fourResults criteria where the organisationconsiders the results required for each of thestakeholders. This link takes us back to theEnablers where in Policy and Strategy:

stakeholders’ requirements and other performance measures are gathered forinput to develop policy and strategy;policy and strategy is developed ensuringstakeholders needs and requirements arebalanced;policy and strategy is deployed in order toachieve the expected results.

In People we consider the need to equip ourpeople to deliver the required results and inProcesses we use the results achieved as feedbackto improve future performance.

Customer FocusCustomers are the reason for an organisationto exist, therefore the customer link isstrong throughout the Model. The moreexplicit links are to criterion part 5c, 5d and5e where the customer facing processes areconsidered and also in criterion 6 wheresatisfaction with products and services ismeasured together with the organisation’sinternal customer indicators. In addition

there are also links to Leadership where theLeaders interact with customers and in Policyand Strategy where needs and requirementsare gathered and then balanced.

Leadership and Constancy of PurposeThe importance of Leadership is pervasivethroughout the Model, for example in thesetting of Policy and Strategy but the majorlink between the Excellence Model and thisConcept is clearly within Criterion 1,Leadership. Measurement of the effectivenessof Leadership may be found in People Results.

SIGNIFICANT LINKS BETWEEN THE FUNDAMENTAL CONCEPTS AND EFQM EXCELLENCE MODEL LINKS

A B C D E A B C D A B C D E A B C D E A B C D E A B A B A B A B

X X X X X X X X X X X X X X X

X X X X X X X X

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X X X X X X X X X X X X X X X X

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Criterion 1 2 3 4 5 6 7 8 9Criterion Part Leadership Policy People Partnerships Processes Customer People Society Key

& Strategy & Resources Results Results Results Perfor-manceResults

Enablers Results

Concepts

Results Orientation

Customer Focus

Leadership & Constancy of Purpose

Management by Processes & Facts

People Development & Involvement

Continuous Learning, Innovation & Improvement

Partnership Development

Corporate Social Responsibility

Management by Processes and Facts Processes are again evidenced throughoutthe Model but some of the more explicitlinks with this Concept include:

1b where leaders ensure a fit for purposemanagement system is developed, imple-mented and improved; 2a and b where information is gathered toinform policy and strategy; 2d identifying key processes;5a and b where the organisations processmanagement and improvement system isconsidered.

In addition, to complete the loop, allResults areas provide information that isused to make the decisions in the Enablers.

People Development and InvolvementThe most explicit links for this Concept are tothe People criterion where people management,development, support and reward and reco-gnition are considered and in the PeopleResults where levels of satisfaction with theorganisation and the internal people indicatorsare captured. There are also links to:

leadership 1d and how leaders motivate,inspire and support people;criterion part 2a where people needs andrequirements are gathered to influencepolicy and strategy;criterion part 2c where these needs and requi-rements are balanced with other stakeholders.

Continuous Learning, Innovationand improvementThis Concept is immediately apparent whenone looks at the picture of the Model and itreminds us of the importance of learningfrom the outputs of the Results criteria andthe need to use the information to be innovativeand creative in our enabling activities.This Concept lives in a variety of theEnablers:

many parts of Leadership are concernedwith identifying, promoting, and beinginvolved in improvement, change andlearning activities;in Policy and Strategy the output fromlearning activity is used to influencePolicy and Strategy;criterion 3, Peoples knowledge and com-petencies are improved, they are involvedand have opportunities to share ideas andknowledge;managing and sharing organisationalknowledge is found in 4e, 5b looks at the use of innovation andcreativity in managing and improvingprocesses;in 5c innovation is seen in the developmentof products and services.

Partnership DevelopmentThe obvious links for this Concept are 4awhere the management of partnerships isconsidered and in criterion 9 where the mea-surement of the effectiveness of partnerships isoften seen. However there are also links in:

1c where leaders interact with partners;criterion part 2a where the partners needsand requirements are gathered to influencePolicy and Strategy; 2c where these needs and requirements arebalanced with those of other stakeholders.

Corporate Social ResponsibilityAs would be expected of a Concept that hasglobal implications, this one is evidenced inmany parts of the Model. Explicitly it isfound in:

criterion 1 Leaders develop, promote andensure effective implementation of the ethics,governance arrangements, equal opportunity,diversity and environmental policies andprogrammes that society expects and theyinteract with society stakeholders; 2a, society’s input as a stakeholder is collected;2b is where we include other societal measures;2c is concerned with balancing that inputwith other stakeholder requirements; criterion 3 People we consider the equalityand fairness in terms and conditions forour employee and how we care for themin general; criterion 4, consideration is given to societypartners, to the financial governance of ourorganisation and to the use and disposalof resources that have an impact on society; 5a we give consideration to the effectiveapplication of standards covering environ-mental, health and safety the managementof processes;5c we consider the after effects of our productsand services when delivered;finally, in 8, measures of Society’s satisfactionwith the organisation and internal societyindicators are sought.

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12 4. The EFQM Excellence Model

Leadership

People

ENAB L ER S

I NNOVAT I ON AND L E ARN ING

RE SU LT S

Partnerships& Resources

Policy &Strategy Processes

KeyPerformance

Results

People Results

Society Results

CustomerResults

4.1. Overview

The EFQM Excellence Model is a non-pres-criptive framework based on nine criteria.Five of these are ‘Enablers’ and four are‘Results’. The ‘Enabler’ criteria cover whatan organisation does. The ‘Results’ criteriacover what an organisation achieves.‘Results’ are caused by ‘Enablers’ and ‘Enablers’are improved using feedback from ‘Results’.

The Model, which recognises there aremany approaches to achieving sustainableexcellence in all aspects of performance, isbased on the premise that:

Excellent results with respect to Performance,Customers, People and Society are achievedthrough Leadership driving Policy andStrategy, that is delivered through People,Partnerships and Resources, and Processes.

The EFQM Model is presented in diagram-matic form above.

The arrows emphasise the dynamic natureof the Model. They show innovation andlearning helping to improve enablers that inturn lead to improved results.

4.2. Model contents and structure

The Model’s 9 boxes, shown above, representthe criteria against which to assess an orga-nisation’s progress towards excellence.

Each of the nine criteria has a definition,which explains the high level meaning ofthat criterion.

To develop the high level meaning furthereach criterion is supported by a number ofcriterion parts. Criterion parts pose a numberof questions that should be considered inthe course of an assessment.

Finally below each criterion part are guidancepoints. Use of these guidance points is notmandatory nor are the lists exhaustive butare intended to further exemplify the meaningof the criterion part.

© 1999 - 2003 EFQM

Definition Excellent Leaders develop and facilitate theachievement of the mission and vision. Theydevelop organisational values and systemsrequired for sustainable success and implementthese via their actions and behaviours.During periods of change they retain aconstancy of purpose. Where required, suchleaders are able to change the direction ofthe organisation and inspire others to follow.

1a. Leaders develop the mission,vision, values and ethics and are rolemodels of a culture of Excellence

This may include:developing the organisation’s mission,vision and culture;developing and role modelling values,ethics and public responsibilities that supportthe culture;reviewing and improving the effectivenessof personal leadership behaviours;being actively involved in improvementactivities;stimulating and encouraging empowerment,creativity and innovation, e.g. by changingthe organisation’s structure, funding learningand improvement activities;encouraging, supporting and acting uponthe findings of learning activities;prioritising improvement activities;stimulating and encouraging collaborationwithin the organisation.

1b. Leaders are personally involved inensuring the organisation’s managementsystem is developed, implemented andcontinuously improved

This may include:aligning the organisation’s structure tosupport delivery of its policy and strategy;ensuring a system for managing processesis developed and implemented;establishing clear ownership of processes;ensuring a process for the development,deployment and updating of policy andstrategy is developed and implemented;ensuring a process for the effective governanceof the organisation is developed andimplemented;ensuring a process for the measurement,review and improvement of key results isdeveloped and implemented;ensuring a process, or processes, for stimulating,identifying, planning and implementingimprovements to enabling approaches, e.g.through creativity, innovation and learningactivities, is developed and implemented.

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1. LEADERSHIP

4.3. Model Criteria

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1c. Leaders interact with customers,partners and representatives of society

This may include:meeting, understanding and respondingto needs and expectations;establishing and participating in partnerships;establishing and participating in jointimprovement activity;recognising individuals and teams of stakeholders for their contribution to thebusiness, for loyalty etc;participating in professional bodies,conferences and seminars, particularly promoting and supporting excellence;promoting, supporting and engaging inactivities that aim to improve the globalenvironment and the organisation’scontribution to society with the view to respecting the rights and interests of futuregenerations.

1d. Leaders reinforce a culture ofExcellence with the organisation’s people

This may include:personally communicating the organisation’smission, vision, values, policy and strategy,plans, objectives and targets to people;being accessible, actively listening inspiring,uniting and responding to people;helping and supporting people to achievetheir plans, objectives and targets;motivating and enabling people to participatein improvement activity;recognising both team and individualefforts, at all levels within the organisation,in a timely and appropriate manner;promoting and encouraging equal oppor-tunities and diversity.

1e. Leaders identify and championorganisational change

This may include:understanding the internal and externaldrivers of change for the organisation; identifying and selecting changes thatneed to be made within the organisation,to the organisation model and in its externalrelationships; leading the development of change plans; securing investment, resources and supportfor change; managing the delivery and risks of theoverall portfolio of change programmes;ensuring the effective delivery of changeand managing stakeholders;communicating changes and the reasonsfor them to the organisations people andother stakeholders;supporting and enabling people to managechange;measuring and reviewing the effectivenessof changes and sharing the knowledge gained.

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DefinitionExcellent Organisations implement theirmission and vision by developing a stakeholderfocused strategy that takes account of themarket and sector in which it operates.Policies, plans, objectives, and processes aredeveloped and deployed to deliver the strategy.

2a. Policy and Strategy are based onthe present and future needs andexpectations of stakeholders

This may include:gathering and understanding informationto define the markets and market segmentsthe organisation will operate in both nowand in the future;identifying, understanding and anticipatingthe needs and expectations of current andfuture stakeholders including customers,employees, partners, society and shareholders;identifying, understanding and anticipatingdevelopments in the market place, includingcompetitor activity.

2b. Policy and Strategy are based oninformation from performance measu-rement, research, learning and externalrelated activities

This may include:analysing output from internal perfor-mance indicators; analysing output from learning activities;

analysing external image and brand awareness data;analysing the performance of competitorsand best in class organisations;analysing data regarding existing/potentialpartners core competencies;analysing data for both long and short

term social, environmental, safety andlegal issues;analysing data on the effects of productsand services throughout their entire life-cycle;identifying and understanding economicand demographic indicators;analysing data to determine the impact ofnew technologies and business models onthe performance of the organisation.

2c. Policy and Strategy are developed,reviewed and updated

This may include:developing, reviewing and updating policyand strategy consistent with the organisation’smission, vision and concepts of Excellence; balancing both long and short-term needsand expectations of stakeholders;assessing risks and identifying ways ofaddressing these risks;identifying present and future competitiveadvantage; identifying core capabilities and needs forpartnerships/alliances to deliver policyand strategy;reaffirming presence in established marketsor requirement to change market approach;aligning strategy with those of partnersand alliances;identifying critical success factors;aligning and continuously developingsocial and environmental standards withpartners;evaluating the relevance and effectivenessof policy and strategy.

2d. Policy and Strategy are communicatedand deployed through a framework ofkey processes

This may include:identifying and designing and communicatingthe framework of key processes needed todeliver the organisation’s policy and strategy;communicating policy and strategy to stakeholders and evaluating the awareness of it;aligning, prioritising, agreeing, cascadingand communicating plans, objectives andtargets as well as following up achievements; establishing organisation wide reportingmechanisms to track progress.

2. POLICY AND STRATEGY

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DefinitionExcellent organisations manage, develop andrelease the full potential of their people at anindividual, team-based and organisational level.They promote fairness and equality andinvolve and empower their people. They carefor, communicate, reward and recognise, ina way that motivates staff and builds commitmentto using their skills and knowledge for thebenefit of the organisation.

3a. People resources are planned, managedand improved

This may include:developing human resource policies, strategies and plans;involving employees, and their representatives,in developing human resource policies,strategies and plans;aligning the human resource plans with policyand strategy, the organisational structureand the framework of key processes;managing recruitment, career developmentand succession planning;promoting and ensuring fairness in all termsof employment including equal opportunitiespolicies, strategies and plans;using people surveys and other forms ofemployee feedback to improve humanresource policies, strategies and plans;using innovative organisation methodologiesto improve the way of working, e.g.restructuring the supply chain, flexibleteam working.

3b. People’s knowledge and competenciesare identified, developed and sustained

This may include:identifying, classifying and matching people’sknowledge and competencies with theorganisation’s needs;developing and using training and deve-lopment plans to help ensure peoplematch the present and future capabilityneeds of the organisation;Developing, mentoring and training allpeople to help them realise and attaintheir full potential;designing and promoting individual, teamand organisational learning opportunities;developing people through work experience;developing team skills;aligning individual and team objectiveswith the organisation’s targets; reviewing and updating individual andteam objectives;appraising and helping people improvetheir performance.

3c. People are involved and empowered

This may include:encouraging and supporting individualand team participation in improvementactivities;encouraging and supporting people’sinvolvement e.g. through in-house confe-rences, ceremonies and community projects;providing opportunities that stimulateinvolvement and support innovative andcreative behaviour;training managers to develop and implementguidelines empowering people to take action;encouraging people to work together in teams.

3d. People and the organisation have adialogue

This may include:identifying communication needs;developing communications policies, strategiesand plans based on communications needs;developing and using top down, bottomup and horizontal communication channels;identifying and ensuring opportunities toshare best practice and knowledge.

3e. People are rewarded, recognised andcared for

This may include:aligning remuneration, redeployment,redundancy and other terms of employmentwith policy and strategy;recognising people in order to promote andsustain their involvement and empowerment;promoting awareness and involvement inhealth, safety, the environment and issueson social responsibility;setting the levels of benefits, e.g. pensionplan, health care, childcare;recognising and taking account of diversityand different cultural backgrounds promotingsocial and cultural activities;providing resources and services that meetlegal essentials and in some cases, exceedthese requirements.

3. PEOPLE

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DefinitionExcellent organisations plan and manageexternal partnerships, suppliers and internalresources in order to support policy and strategyand the effective operation of processes.During planning and whilst managing part-nerships and resources they balance the currentand future needs of the organisation, thecommunity and the environment.

4a. External partnerships are managed

This may include:identifying key organisation and communitypartnership opportunities in line with policyand strategy and the organisations mission;structuring partnership and supplier rela-tionships to create and maximise value;forming supply chain partnerships thatadd value to customers;Identifying and leveraging core compe-tencies of partners and supporting mutualdevelopment;ensuring cultural compatibility and the sharingof knowledge with partner organisations;generating and supporting innovative and creative thinking through the use ofpartnerships;creating synergy in working together toimprove processes and add value to thecustomer/supplier chain.

4b. Finances are managed

This may include:developing and implementing financialstrategies and processes for using financialresources in support of overall policy andstrategy; designing the financial planning and reportingto cascade the financial stakeholdersexpectations throughout the organisation; establishing reporting mechanisms; evaluating investment in and divestmentof both tangible and non tangible assets;using financial mechanisms and parametersto ensure an efficient and effective resourcingstructure;developing and introducing methodologiesfor managing risks to financial resourcesto all appropriate levels in the organisation;establishing and implementing coregovernance processes at all appropriatelevels in the organisation.

4. PARTNERSHIPS AND RESOURCES

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4c. Buildings, equipment and materialsare managed

This may include:developing a strategy for managing buildings,equipment and materials that supportsthe organisations policy and strategy;managing the maintenance and utilisationof assets to improve total life cycle performance;managing the security of assets;measuring and managing any adverseeffects of the organisation’s assets on thecommunity and employees (includingergonomics, health and safety);utilising resources in an environmentallysound manner throughout the entire life-cycle of a product;optimising material inventories;optimising consumption of utilities;reducing and recycling waste;minimising any adverse global impact ofproducts, production processes and services;optimising transportation usage.

4d. Technology is managed

This may include:developing a strategy for managing tech-nology that supports the organisations policyand strategy;identifying and evaluating alternative andemerging technologies in the light of theirimpact on business and the society;managing the technology portfolio includingthe identification and replacement of outdated technology;exploiting existing technology;developing innovative and environmentallyfriendly technology (i.e. conserving energyand resources, minimisation of waste andemissions, encouraging recycling and re-use);Using Information and CommunicationTechnologies to support and improve theeffective operation of the organisation;using technology to support improvement.

4e. Information and knowledge aremanaged

This may include:developing a strategy for managing infor-mation and knowledge that supports theorganisations policy and strategy;identifying the organisations informationand knowledge requirements;collecting, structuring and managinginformation and knowledge in support ofpolicy and strategy;providing appropriate access, for bothinternal and external users, to relevantinformation and knowledge;using information technology to supportinternal communication and informationand knowledge management;assuring and improving information validity,integrity and security;cultivating, developing and protectingunique intellectual property in order tomaximise customer value;seeking to acquire, increase and use knowledgeeffectively;generating innovative and creative thinkingwithin the organisation through the use ofrelevant information and knowledge resources.

DefinitionExcellent organisations design, manage andimprove processes in order to fully satisfy,and generate increasing value for, customersand other stakeholders.

5a. Processes are systematically designedand managed

This may include:designing the organisation’s processes,including those key processes needed todeliver policy and strategy;identifying process stakeholders and managinginterface issues inside the organisationand with external partners for the effectivemanagement of end-to-end processes;establishing the process management system;applying systems standards covering, forexample, quality management systems,environmental systems, occupational healthand safety systems in process management;implementing process indicators and settingperformance targets;reviewing the effectiveness of the processframework in delivering the organisationspolicy and strategy.

5b. Processes are improved, as needed,using innovation in order to fully satisfyand generate increasing value for customersand other stakeholders

This may include:identifying and prioritising opportunitiesfor improvement, and other changes,both incremental and breakthrough;using performance and perception resultsand information from learning activitiesto set priorities and targets for improvementand improved methods of operation;stimulating and bringing to bear the creativeand innovative talents of employees, customersand partners in incremental and break-through improvements;discovering and using new process designs,operating philosophies and enabling tech-nology;establishing appropriate methods forimplementing change;piloting and controlling the implementationof new or changed processes;communicating process changes to allappropriate stakeholders;ensuring people are trained to operate newor changed processes prior to implementation;ensuring process changes achieve predictedresults.

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5. PROCESSES

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5c. Products and Services are designedand developed based on customerneeds and expectations

This may include:using market research, customer surveysand other forms of feedback to determinecustomer current needs and expectationsfor products and services;anticipating and identifying improvementsaimed at enhancing products and servicesin line with customers’, and other stake-holders, future needs and expectations;designing and developing new productsand services together with customers andpartners that add value for the customers; understanding and anticipating theimpact and potential of new technologieson products and services;developing new products and services forboth the current established market andto gain access to other markets; using creativity, innovation and key com-petencies of both internal people andexternal partners to design and developcompetitive products and services.

5d. Products and Services are produced,delivered and serviced

This may include:producing or acquiring products and servicesin line with designs and developments;marketing, communicating the value pro-position, and selling products and servicesto existing and potential customers; delivering products and services to customers;servicing products and services, includingrecycling where appropriate.

5e. Customer relationships are managedand enhanced

This may include:determining and meeting customers dayto day contact requirements;handling feedback received from day today contacts including complaints;proactive involvement with customers inorder to discuss and address their needs,expectations and concerns;following up on sales, servicing and othercontacts in order to determine levels ofsatisfaction with products, services andother customer sales and servicing processes;seeking to maintain creativity and innovationin the customer sales and servicing rela-tionship;establishing partnerships with customerswhich add value to the supply chain;using regular surveys, other forms ofstructured data gathering and data gatheredduring day to day customer contacts inorder to determine and enhance customerrelationship satisfaction levels;advising customers on the responsible useof products.

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DefinitionExcellent organisations comprehensivelymeasure and achieve outstanding resultswith respect to their customers.

6a. Perception Measures

These measures are of the customers’ perceptions of the organisation (obtained,for example, from customer surveys, focusgroups, vendor ratings, compliments andcomplaints).

Depending on the purpose of the organisationexamples of measures that may be madeinclude:

Image:- accessibility;- communication;- transparency;- flexibility;- pro-active behaviour;- responsiveness.Products and services:- quality;- value;- reliability;- design innovation;- delivery;- environmental profile.Sales and after sales support:- capabilities and behaviour

of employees;- advice and support;- customer literature and technical

documentation;- handling complaints;- product training;- response time;- technical support;- warranty and guarantee provisions.Loyalty:- intention to repurchase;- willingness to purchase other products

and services from the organisation;- willingness to recommend the organisation.

6b. Performance Indicators

These measures are the internal ones usedby the organisation in order to monitor,understand, predict and improve the perfor-mance of the organisation and to predictperceptions of its external customers.


Image:- number of customer accolades

and nominations for awards;- press coverage.Products and services:- competitiveness;- defect, error and rejection rates;- seals of approval, environmental labels;- guarantee provisions and warranty

provisions;- complaints;- logistic indicators;- product life cycle;- innovation in design;- time to market.Sales and after sales support:- demand for training;- handling of complaints;- response rates.Loyalty:- duration of relationship;- effective recommendations;- frequency/value of orders;- lifetime value;- numbers of complaints and

compliments;- new and/or lost business;- customer retention.

6. CUSTOMER RESULTS

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DefinitionExcellent organisations comprehensivelymeasure and achieve outstanding resultswith respect to their people.


These measures are of the people’s perceptionof the organisation (obtained, for example,from surveys, focus groups, interviews, structured appraisals).

Depending on the purpose of the organisationexamples of measures that may be made include:

Motivation:- career development;- communication;- empowerment;- equal opportunities;- involvement;- leadership;- opportunity to learn and achieve;- recognition;- target setting and appraisal;- the organisation’s values, mission,

vision, policy and strategy;- training and development.Satisfaction:- organisation’s administration;- employment conditions;- facilities and services;- health and safety conditions;- job security;- pay and benefits;- peer relationships;- the management of change;- the organisation’s environmental policy

and impact;- the organisation’s role in the community

and society;- working environment.


These measures are the internal ones used bythe organisation in order to monitor, understand,predict and improve the performance of theorganisation’s people and to predict theirperceptions.


Achievements:- competency requirements versus

competencies available;- productivity;- success rates of training and

development to meet objectives;- external awards and recognition.Motivation and involvement:- involvement in improvement teams;- involvement in suggestion schemes;- levels of training and development;- measurable benefits of team work;- recognition of individuals and teams;- response rates to people surveys.Satisfaction:- absenteeism and sickness levels;- accident levels;- grievances;- recruitment trends;- staff turnover and loyalty;- strikes;- use of organisation provided facilities

and benefits.Services provided to the organisation’speople:- accuracy of personnel administration;- communication effectiveness;- speed of response to enquiries;- training evaluation.

7. PEOPLE RESULTS

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DefinitionExcellent organisations comprehensivelymeasure and achieve outstanding resultswith respect to society


These measures are of the society’s perceptionof the organisation (obtained, for example,from surveys, reports, press articles, publicmeetings, public representatives, governmentalauthorities). Some of the measures containedin the guidance for Perception Measures maybe applicable to Performance Indicators andvice versa.


Image:- responsiveness to contacts;- as an employer;- as a responsible member of the community.Performance as a responsible citizen:- disclosures of information relevant to

the community;- equal opportunities practices;- impact on local regional, national and

global economies;- relationships with relevant authorities;- ethical behaviour.Involvement in the communities where itoperates:- involvement in education and training;- involvement of community bodies in

relevant activities;- support for medical and welfare provision;- support for sport and leisure;- voluntary work and philanthropy.Reduction and prevention of nuisance andharm from its operations and/or throughoutthe lifecycle of its products and services:- health risks and accidents;- noise and odour;- hazards (safety);- pollution and toxic emission;- analysis of the supply chain;- environmental performance evaluation/

lifecycle evaluation.

Reporting on activities to assist in the preservation and sustainability of resources:- choice of transport;- ecological impact;- reduction and elimination of waste and

packaging;- substitution of raw materials or other

inputs;- usage of utilities e.g. gases, water, electricity,- recycling.


These measures are the internal ones usedby the organisation in order to monitor,understand, predict and improve the perfor-mance of the organisation and to predictperceptions of society.


Handling changes in employment levels;Dealings with authorities on issues such as:- certification;- clearances;- import/export;- planning;- product release.Accolades and awards received:- Exchange of information in relation to

Social Responsibility good practices,auditing and social reporting.

8. SOCIETY RESULTS

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DefinitionExcellent organisations comprehensivelymeasure and achieve outstanding resultswith respect to the key elements of theirpolicy and strategy.

9a. Key Performance Outcomes

These measures are key results defined bythe organisation and agreed in their policyand strategies.

Depending on the purpose and objectives ofthe organisation some of the measures containedin the guidance for Key Performance Outcomesmay be applicable to Key Performance Indicatorsand vice versa.

Financial outcomes may include:- Market related and general data (sales,

share price, dividends etc);- Profitability (gross margins, earnings per

share, earnings before interest and tax,contribution margin etc);

- Investment and asset related information(Return on invested capital, Return on netassets, Return on capital employed etc);

- Budgetary Performance (Performanceagainst organisation or unit budgets).

Non-Financial outcomes may include:- Market Share;- Time to market;- Success rates;- Volumes;- Process performance.

9b. Key Performance Indicators

These measures are the operational onesused in order to monitor and understandthe processes and predict and improve theorganisation’s likely key performance outcomes.


Financial:- Cash flow- Depreciation;- Maintenance costs;- Project costs;- Credit ratings.Non Financial:- Processes (performance; assessments;

innovations; cycle times);- External resources including partnerships

(supplier performance: supplier price;number and value added of partnerships;number and value added of joint impro-vements with partners);

- Buildings, equipment and materials: (defectrates; inventory turnover; utilisation);

- Technology: (innovation rate; value ofintellectual property; patents; royalties);

- Information and knowledge: (accessibility;integrity; value of intellectual capital).

9. KEY PERFORMANCE RESULTS

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4.4. Red Threads Through The Model

Earlier in this brochure we looked at some linkages between the concepts and the Excellence Model. There are however, a number of topicsthat run through the Model - some Red Threads. The graphic of the Excellence Model portrays this with the lines between the criterion boxes.These Red Threads mean that when implementing improvement actions or considering your processes you will most certainly be impactingmore than one of the criterion parts. The following list whilst not definitive illustrates some of those threads.

TOPIC RED THREAD PATH

Communications 1c – Leaders communications with external stakeholders1d – Leaders communication with internal stakeholders2e – Communicating policy and strategy3d – Internal communications5b – Communicating process changes and improvements6}7} – Measuring satisfaction and effectiveness of communications8}

Corporate Social Responsibility 1a – Vision, Values and Ethics reflect organisations CSR position1c – Relationship with external stakeholders1d – Relationship with internal stakeholders1e – Leading analysis of changes in the external environment2a – Input from stakeholders to strategy2b – Input from measures and data including environmental and demographic factors2c – Developing strategy including CSR strategy2d – Deployment of strategy including all stakeholders3a – Ethical and fair values in recruitment and terms of employment3b – Developing people3c – Involvement of people in external projects and conferences3e – Caring for people promoting cultural and social activities4a – Partnerships including those with society organisations and local suppliers4b – Financial strategies to support CSR strategies4c – Environmental management5c – Customer and partner input to product 5d – Producing products recycling etc in mind5e – Daily relationship with customers6a – Customers perception of image etc7a – Peoples perception of organisation as employer8 – All 9 – Partnership, financial, process efficiency, performance against standards

Creativity & Innovation 1a – Leaders stimulating and encouraging2b – Using creativity outcomes as inputs to policy and strategy3c – Provision of opportunities for creative and innovative behaviour4a – Using partnerships to promote innovation and creativity4e – Using information and knowledge to prompt innovation and creativity5b – Using stakeholders innovation and creativity to change and improve processes 5c – Using creativity and innovation to develop products and services 5e – Using creativity and innovation to enhance the customer relationship6}7} – Measuring the effectiveness of creativity and innovation processes8} – (e.g. innovation in design)9}

Customers 1c – Leaders involvement with customers2a – Establishing customers needs and expectations2c – Balancing needs and expectations5b – Improving processes to satisfy customer5c – Customer facing processes5d – Customer facing processes5e – Customer relationship management6a – Customer perception results6b – Internal customer results

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Governance 1b – Processes for effective governance of organisation developed and implemented2a – Gathering needs and expectations from stakeholders2b – Gathering data inputs for policy and strategy development4b – Establishing and implementing core governance process at all levels9a – Reporting financial outcomes9b – Reporting financial measures

Knowledge 2b – Using knowledge to influence policy and strategy3d – Identifying, developing and sustaining peoples individual knowledge4e – Managing the organisations knowledge 7 – Measuring satisfaction with increase in knowledge and people indicators for increasing knowledge9 – Using knowledge to improve business

Market and Market Definition 2a – Collecting information to identifying market and market segments2b – Indicators regarding external image and brand and competitors performance2c – Reaffirming market position3b – Matching people with current and future organisational needs4a – Adding value to customer/supply chain through partnerships5c – Developing new products for both the current and future markets5d – Marketing, communicating and selling products6a – Sustomer perception6b – Internal indicators7a – People perception of organisation7b – Loyalty8a – Society image9 – Market share, position

People (Internal) 1d – Leaders involvement with people2a – Establishing people needs and expectations2c – Balancing needs and expectations3a – People planning and managing3b – Identify, developing and sustaining people skills3c – Involving and empowering people3d – Organisational communications with people3e – Rewarding, recognising and caring for people7a – People perception results7b – Internal people results

Process Methodology 1b – Developing a system for managing processes and assigning process owners as part of the management system 2d – Identifying and developing key process framework5a – Describing the system for designing and managing processes5b – Describing the system for improving processes6}7} – Measuring the effectiveness of processes8}9}

Suppliers/Partners 1c – Leaders involvement with supplier/partners2a – Establishing needs and expectations2c – Balancing needs and expectations4a – Managing partnerships9a – Partnership/supplier key performance results9b – Partnership/supplier key performance indicators

Sustainability 1b – Developing the management framework1c – Promoting, supporting and engaging in activities that promote rights and interests of future generations2a – Gathering data for needs for both now and the future2c – Balancing long and short term needs3b – Developing people for current and future needs5c – Anticipating and enhancing customers future needs for product design and development6}7} – Sustainability of results8}9}

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5.1. The RADAR logic

At the heart of the Model lies the logicknown as RADAR.

RADAR consists of four elements: Results,Approach, Deployment,Assessment and Review.

This logic states that an organisation needs to:Determine the Results it is aiming for aspart of its policy and strategy making process.These results cover the performance of the organisation, both financially andoperationally, and the perceptions of itsstakeholders.Plan and develop an integrated set ofsound Approaches to deliver the requiredresults both now and in the future.Deploy the approaches in a systematicway to ensure full implementation.Assess and Review the approaches followedbased on monitoring and analysis of theresults achieved and ongoing learningactivities. Finally, identify, prioritise, planand implement improvements where needed.

When using the Model within an organisationthe Approach, Deployment, Assessment andReview elements of the RADAR logicshould be addressed for each Enabler criterionpart and the Results element should beaddressed for each Results criterion part.

Applying RADAR LogicThe RADAR logic can be used under anumber of different circumstances. Themost commonly known is assessment orSelf-Assessment using the RADAR scoringmatrix, but others exist.

One example is developing a managementsystem. The RADAR elements, togetherwith the Model criterion parts, can be usedto stimulate your thinking. It will promptyou to consider questions regarding theapproaches to be used, how you will deploythem and how you will measure the effecti-veness of your chosen path.

Another example is using the RADAR as amethod of structured problem analysis. TheRADAR elements give you a structure towork through a process, project or approachand identify problem areas.

Results, Approach, Deployment, Assessmentand Review are the RADAR elements.These should apply to each of the Modelcriterion parts. The following describes thespecific elements of the RADAR conceptthat should be addressed using the attributesthat can be seen in bold.

ResultsThis covers what an organisation is achieving.In an excellent organisation the results showpositive trends and/or sustained good per-formance. Targets will be set, appropriateand met or exceeded. Performance will becompared externally and will compare wellwith others, particularly against best in sectorand/or world class. The cause and effect linkbetween approaches adopted and resultsachieved will be clear. Additionally, thescope of the results will address the relevantareas. Where it helps understanding and the

identification of improvement opportunities,the results will be segmented, for exampleby customer or by department.

ApproachThis covers what an organisation plans to doand the reasons for it. Excellent organisationswill have sound approaches. A soundapproach has a clear rationale that focuseson the organisations present and futureneeds; is delivered through a well-definedand developed process or processes, and hasa clear focus on the stakeholder needs. Inaddition the approaches will be integrated.An integrated approach has a clear basis inpolicy and strategy and is linked to otherapproaches where appropriate.

DeploymentThis covers what an organisation does to deploythe approach. In an excellent organisationthe approach will be implemented in relevantareas in a systematic way. Systematic imple-mentation is well planned and is introducedin a manner suitable for the approach andthe organisation.

Assessment & ReviewThis covers what an organisation does toreview and improve both the approach andthe deployment of the approach. In anexcellent organisation the approach, anddeployment of it, will be subject to regularmeasurement, learning activities will beundertaken, and the output from both willbe used to identify, prioritise, plan andimplement improvement.

The RADAR Matrix showing the constructionof elements and attributes in a table formatused to apply the logic when scoring anorganisation follows.

5. RADAR

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5.2. Scoring Matrix

The RADAR scoring matrix is the evaluationmethod used to score applications for theEuropean Quality Award and most nationalquality awards in Europe. It can also be usedby organisations carrying out Self-Assesmentand wishin to use a score for benchmarkingor other purposes.

When an organisation is scored using theRADAR scoring matrix weights are given toeach of the nine criteria, as shown in the diagrambelow, to calculate the number of pointsawarded. These weights were established in1991 as the result of a wide consultationexercise across Europe. These weights havebeen widely accepted and have been reviewedfrom time to time by EFQM, most recentlyin 2002.

Generally each criterion part is allocatedequal weight within that criterion, forexample 1a attracts 20% of the points allocatedto criterion 1.

There are however three exceptions:1. Criterion part 6a takes 75% of the points

allocated to criterion 6, whilst criterionpart 6b takes 25%;

2. Criterion part 7a takes 75% of the pointsallocated to criterion 7, whilst criterionpart 7b takes 25%;

3. Criterion part 8a takes 25% of the pointsallocated to criterion 8, whilst criterionpart 8b takes 75%.

The first step to scoring is to use the RADARscoring matrix to allocate a percentage scoreto each criterion part. This is achieved byconsidering each of the elements and attributesof the matrix for each of the criterion partsin the Model. The scoring summary sheet (page31) is then used to combine the percentagescores awarded to the criterion parts to givean overall score on a scale of 0 -1000 points.

Leadership10%

People9%

ENABL ER S

I NNOVAT I ON AND L E ARN ING

RE SU LT S

Partnerships& Resources

9%

Policy &Strategy

8%

Processes14%

KeyPerformance

Results15%

People Results9%

Society Results6%

CustomerResults 20%

© 1999 - 2003 EFQM

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RADAR SCORING MATRIX©

RESULTS

ELEMENTS ATTRIBUTES 0% 25% 50% 75% 100%

RESULTS Trendstrends are positive AND/OR No Results or Positive trends Positive trends an/or Positive trends an/or Positive trends an/orthere is sustained anecdotal an/orsatisfactory sustained good sustained good sustained goodgood performance information performance performance for performance for performance for

for about 1/4 of about 1/2 of results about 3/4 of results over all results overresults over at over at least 3 years at least 3 years at least 3 yearsleast 3 years

Targetstargets are achieved No Results or Achieved and Achieved and Achieved and Achieved and targets are appropriate anecdotal information appropriate for appropriate for appropriate for appropriate for

about 1/4 of results about 1/2 of results about 3/4 of results all results

Comparisonsresults compare well with No Results or Favourable Favourable Favourable Favourableothers AND/OR anecdotal information comparisons for comparisons for comparisons for comparisons forresults compare well with about 1/4 results about 1/2 results about 3/4 results all resultsacknowledged ‘World Class’

Causesresults are caused by approach No Results or Cause and Cause and Cause and Cause and

anecdotal information effect visible effect visible effect visible effect visiblefor about 1/4 results for about 1/2 results for about 3/4 results for all results

Total


Scoperesults address relevant areas No Results or Results address 1/4 of Results address 1/2 of Results address 3/4 of Results address all of results are appropriately anecdotal relevant areas relevant areas relevant areas relevant areassegmented e.g. by customer, information and activities and activities and activities and activities by business

Total

Overall Total

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

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RADAR SCORING MATRIX©

ENABLERS


APPROACH Soundapproach has a clear rationale No evidence Some evidence Evidence Clear Evidence Comprehensiveapproach has defined processes or anecdotal evidenceapproach focuses onstakeholder needs

Integratedapproach supports No evidence Some evidence Evidence Clear Evidence Comprehensivepolicy and strategy or anecdotal evidenceapproach is linked to otherapproaches as appropriate

Total 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100


DEPLOY- ImplementedMENT approach is implemented No evidence Implemented in Implemented in Implemented in Implemented in

implementation 1/4 of relevant areas 1/2 of relevant areas 3/4 of relevant areas all relevant areas

Systematicapproach is deployed in a No evidence Some evidence Evidence Clear Evidence Comprehensive structured way with the or anecdotal evidencemethod used for deployment being planned and executedsoundly

Total 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100


ASSESS- MeasurementMENT regular measurement No evidence Some evidence Evidence Clear Evidence Comprehensive & REVIEW of the effectiveness or anecdotal evidence

of the approach and deployment is carried out

Learningis used to:

identify best practice No evidence Some evidence Evidence Clear Evidence Comprehensive and improvement or anecdotal evidenceopportunities

ImprovementOutput from measurement No evidence Some evidence Evidence Clear Evidence Comprehensive and learning is analysed or anecdotal evidenceand used to:

identify, prioritise, plan and implement improvements

Total

Overall Total

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

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SCORING SUMMARY SHEET

1.Enablers Criteria

Criterion Number 1 % 2 % 3 % 4 % 5 %

Criterion Part 1a 2a 3a 4a 5aCriterion Part 1b 2b 3b 4b 5bCriterion Part 1c 2c 3c 4c 5cCriterion Part 1d 2d 3d 4d 5dCriterion Part 1e 3e 4e 5eCriterion Part

Sum of parts÷ 5 ÷ 4 ÷ 5 ÷ 5 ÷ 5

Score awarded

Note: The score awarded is the arithmetic average of the % scores for the criterion part. If applicants presentconvincing reasons why one or more parts are not relevant to their organisation it is valid to calculatethe average on the number of criterion addressed. To avoid confusion (with a zero score) parts of thecriteria accepted as not relevant should be entered "NR" in the table above.

2. Results Criteria

Criterion Number 6 % 7 % 8 % 9 %

Criterion Part 6a x 0.75= 7a x 0.75= 8a x 0.25= 9a x 0.50=

Criterion Part 6b x 0.25= 7b x 0.25= 8b x 0.75= 9b x 0.50=

Score awarded

3. Calculation of Total Points

Criterion Score Awarded factor Points Awarded

1 Leadership x 1.02 Policy & Strategy x 0.83 People x 0.94 Partnership and Resources x 0.95 Processes x 1.46 Customer Results x 2.07 People Results x 0.98 Society Results x 0.69 Key Performance Results x 1.5

Total points awarded

- Enter the score awarded to each criterion (of both sections 1 and 2 above).- Multiply each score by the appropriate factor to give points awarded.- Add points awarded to each criterion to give total points awarded for application.

32 6. EFQM Glossary of Terms

The following is a list of terms used throughoutthe EFQM Excellence Model guidancematerial. It has been compiled in order tohelp understanding and use of the Model.

Benchmark - A measured, “best-in-class”achievement; a reference or measurementstandard for comparison; this performancelevel is recognised as the standard of excellencefor a specific business process.

Benchmarking - A systematic and continuousmeasurement process; a process of continuouslycomparing and measuring an organisation’sbusiness processes against business leadersanywhere in the world to gain informationthat will help the organisation take action toimprove its performance.

Core competencies - A well performedinternal activity that is central to an organisationscompetitiveness, profitability or efficiency.

Corporate Governance - Defining andimplementing a system of rules, processesprocedures and relationships to manage theorganisation and fulfil its legal, financial andethical obligations.

Corporate Social Responsibility -Policies and practices to measure and managethe environmental performance and socialimpact of the organisation, its reputation inthese areas, and two-way communicationwith society and stakeholders.

Creativity - The generation of ideas fornew or improved working practices and/orproducts and services.

Critical success factors - The priorconditions that must be fulfilled in orderthat an intended strategic goal can be achieved.

Culture - The total range of behaviours,ethics and values which are transmitted,practised and reinforced by members of theorganisation.

Empowerment - The vesting of employeeswith necessary skills, knowledge, informationand authorities in such a way as to enablethem to take all actions necessary to producethe specified outputs in the most effectiveand efficient way. A periodic setting of cleartargets gives the necessary guidance withinthe framework of the overall objectives of theorganisation.

End to end processes - A value streamthat crosses functions and organisations inorder to create or deliver a product or service.

Equal opportunities - The practice ofensuring that all employees and users of servicesreceive fair and equal treatment.

Ethics - The universal morals that the orga-nisation adopts and abides by.

Excellence - Outstanding practice inmanaging the organisation and achieving resultsbased on a set of Fundamental Concepts whichwill include: results orientation, customer focus,leadership and constancy of purpose mana-gement by processes and facts, involvementof people, continuous improvement andinnovation, mutually beneficial partnerships,corporate social responsibility.

External Customers - The external customers of the organisation. These may alsoinclude other customers in the distribution chain.

Finances - The short-term funds requiredfor the day-to-day operation of the business,and the capital funding from various sourcesrequired for the longer term financing of theorganisation.

Fundamental Concepts of Excellence -The set of principles and ideals upon whichthe EFQM Excellence Model framework is based.

Good/best practice - An error free, provenand documented working practice that exceedsthe norms of known, current operationalperformance within a specific business envi-ronment.

Governance - The framework of authorityand control within an organisation.

Innovation - The practical translation ofideas into new products, services, processes,systems and social interactions.

Intellectual capital - The value of anorganisation that is not captured in its traditionalfinancial accounts. It represents the intangibleassets of an organisation and is the differencebetween market and book value. Commonlydefined components are human capital,structural capital and customer capital.

Key Performance Results - Thoseresults, not covered by Customer, People andSociety that it is imperative for the organisationto achieve.

Knowledge -Knowledge is part of the hierarchymade up of data, information and knowledge.Data are raw facts. Information is data withcontext and perspective. Knowledge is infor-mation with guidance for action.

Lagging Indicators - Lagging Indicatorsshow the final outcome of an action, usuallywell after it has been completed. Profitabilityis a lagging indicator of sales and expenses.Perception measures are also referred to aslagging (trailing/following) indicators. Aperception result relates to direct feedbackfrom a stakeholder e.g. when employeesrespond via an internal attitude survey.

Leaders - The people who coordinate andbalance the interests of all who have a stake inthe organisation, including: the executive team,all other managers and those in team leadershippositions or with a subject leadership role.

Leading Indicators - Leading indicators,sometimes referred to as driving indicators,are usually measured more frequently thanlagging indicators. They are the result of ameasurement process that is driven by theorganisation itself and it is entirely withintheir span of control e.g. measuring processcycle times. Leading Indicators are those that

33

predict, with a degree of confidence, a futureoutcome. Employee satisfaction, although alagging indicator, for the morale of staff, isusually recognised as a leading indicator ofcustomer satisfaction.

Learning - The acquiring and understandingof information that may lead to improvementor change. Examples of organisational learningactivities include benchmarking, internallyand externally led assessments and/oraudits, and best practice studies. Examplesof individual learning include training andprofessional qualifications.

Management System - The frameworkof processes and procedures used to ensurethat the organisation can fulfil all tasksrequired to achieve its objectives.

Mission - A statement that describes thepurpose or “raison d'être” of an organisation.It describes why the business or function exists.

Organisational agility - The ability of anorganisation to react positively to requiredchanges in speed, focus, goals, actions, andtimescales that effect its ability to perform.

Partnerships - A working relationshipbetween two or more parties creating addedvalue for the customer. Partners can includesuppliers, distributors, joint ventures, andalliances.Note: Suppliers may not always be recognisedas formal partners.

People - All of the individuals employedby the organisation including full time, parttime, temporary and contract employees.

Perception - The opinion of an individualor group of people.

Performance - A measure of attainmentachieved by an individual, team, organisationor process.

Policy and Strategy - Strategy is the wayan organisation implements its mission andvision, based on the needs of major stake-holders and supported by relevant policies,plans, objectives, targets and processes.

Process - A sequence of activities that addsvalue by producing required outputs from avariety of inputs.

Process indicators - Leading indicatorsrelative to the performance of the process.

RADAR - Results, Approach, Deployment,Assessment and Review.

Stakeholders - All those who have aninterest in an organisation, its activities andits achievements. These may include customers,partners, employees, shareholders, owners,government, and regulators.

Society - All those who are, or believe theyare, affected by the organisation, other thanits people, customers and partners.

Supply chain - The integrated structure ofactivities that procure, produce and deliverproducts and services to customers. Thechain can be said to start with the suppliersof your suppliers and ends with the customersof your customer.

Sustainable excellence - Excellentresults with respect to Performance,Customers, People and Society are achievedthrough Leadership driving Policy andStrategy that is delivered through People,Partnerships and Resources, and Processes.

Values - The understandings and expectationsthat describe how the organisation’s peoplebehave and upon which all business rela-tionships are based (e.g. trust, support and truth).

Vision - A statement that describes how theorganisation wishes to be in the future.

34

EFQM works in partnership with many national organisations in Europe and licenses a number of organisations to deliver training coursesrelated to the EFQM Excellence Model. We also organise a number of events throughout Europe related to the Excellence Model. Furtherinformation on these organisations and events are available via our website (www. efqm.org)

7. Further Help

TITLE

Introducing Excellence

Fundamental Concepts of Excellence

The EFQM Excellence Model

The EFQM Excellence ModelPublic Sector Version

The EFQM Excellence Model Small and Medium Enterprise Version

Assessing for Excellence - A Practical Guide for Self-Assessment

Pack of Advice

CD-ROM Self-Assessment Workbook

Excellence One Tool Box and CD-ROM

PURPOSE

Overview of the Model, the Concepts, the Levels ofExcellence Recognition Scheme and Self-Assessment.

To provide detailed information on the FundamentalConcepts. To persuade senior executives that the Modelhas value, and is based on sound business sense.

To provide details on the EFQM Excellence Model,including the linkages with the FundamentalConcepts, criteria and criterion parts.

As above with Public Sector differences.

As above with SME differences.

To provide a summary of what Self-Assessment is, thevalue of it, the different approaches to Self-Assessmentand their respective risks and benefits.

Providing general advice on the implementation ofExcellence into an organisation using the EFQMExcellence Model.

A structured set of 90 questions based on the EFQMExcellence Model.

A comprehensive, interactive, online learning platformfor Performance Excellence.

AUDIENCE

Anyone with a general enquiry or interest onEFQM, the EFQM Excellence Model and Modelrelated activities.

Those with an interest in the concepts underpinningthe Model.Senior Executives and people who need to persuadeSenior Executives.

Award Applicants (2004 awards onwards).Self-Assessment practitioners including internal andaward assessors.Quality professionals and others with a wish tounderstand the Model in more detail.Also supporting Material for the EFQM AssessorTraining & Self-Assesssment Training Courses.

As above but also for those with a specific interest inusing the Model within Public Sector organisations.

As above but also for those with a specific interest inusing the Model within SMEs.

People either charged with, or involved in, developingSelf-Assessment strategies in their organisation.People who wish to benchmark their current Self-Assessment approach.Also supporting material for the EFQM Self-Assessment Training Course.

Those wishing for easy description and liveexamples of the implementation of the Model.

Organisations wishing to undertake a easy question-naire approach to Self-Assessment.

Any organisation or individual wishing to haveaccess to regular news updates, latest managementpractices and tools and discussion forums onPerformance Excellence topics.

ASSOCIATED PRODUCTS

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This update of the EFQM Excellence Model was produced in 2002. Inputs were taken frommany sources but EFQM expressly wishes to acknowledge the Model Refreshing ReviewGroup Members.

Roger Cliffe Lloyds TSB Bank PlcManfred Jung Sustainability Initiative “Netzwerk COUP 21 Nürnberg”Mark Webster Mark Webster ConsultingNikos Avlonas American College of Greece /Hellenic Management AssociationWalter Ludwig Deutsche Gesellschaft für Qualität e.V./BASF AktiengesellschaftRichard Parker British Quality FoundationXavier Tort-Martorell Technical University of Catalonia (UPC)Jann Jevons PACEPerformance LtdGeoff Carter PACEPerformance LtdDiane Dibley EFQM

And all its National Partner organisations for their contributions and time.

8. Acknowledgements

ISBN 90-5236-242-4

Brussels Representative OfficeAvenue des Pléiades, 151200 Brussels, BelgiumTel: + 32 2 775 35 11Fax: + 32 2 775 35 35http://www.efqm.orge-mail: [email protected]

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