The EFQM Excellence Model, developed by the European Foundation for Quality Management (EFQM), is a framework that assists organizations in assessing and enhancing their performance to attain excellence. This model has undergone significant revisions since its inception in 1992, with the 2020 version being the most recent.
Key Facts
- Purpose, Vision, and Strategy: An outstanding organization has a clear purpose that inspires, a vision that is aspirational, and a strategy that delivers.
- Organizational Culture and Leadership: Organizational culture refers to the shared values and norms within an organization that influence behavior, while organizational leadership focuses on the organization as a whole acting as a leader within its ecosystem.
- Engaging Stakeholders: Organizations need to identify and engage with key stakeholders to understand their needs and expectations.
- Creating Sustainable Value: An outstanding organization recognizes the importance of creating sustainable value for long-term success and financial strength.
- Driving Performance and Transformation: Organizations need to continuously improve their performance and be able to meet current and future requirements to remain successful.
- Stakeholder Perceptions: This criterion focuses on the results based on feedback from key stakeholders about their experiences with the organization.
- Strategic and Operational Performance: This criterion concentrates on the organization’s performance in terms of fulfilling its purpose, delivering its strategy, and ensuring its fitness for the future.
These concepts are part of the EFQM Excellence Model’s framework, which helps organizations assess and improve their performance to achieve excellence.
The 2020 EFQM Excellence Model
The 2020 EFQM Excellence Model centers around three fundamental questions:
- WhyWhat is the organization’s purpose, vision, and strategy?
- HowHow does the organization execute its strategy and achieve its goals?
- WhatWhat are the organization’s results and how do they align with its objectives?
Key Concepts of the EFQM Excellence Model
The model comprises seven criteria, each supported by guiding principles. These criteria fall under three main categories:
Direction
- Purpose, Vision, and StrategyOrganizations should have a clearly defined purpose that inspires, a vision that is aspirational, and a strategy that aligns with both.
- Organizational Culture and LeadershipOrganizational culture encompasses shared values and norms that influence behavior, while organizational leadership focuses on the organization’s role as a leader within its ecosystem.
Execution
- Engaging StakeholdersOrganizations need to identify and engage with key stakeholders to understand their needs and expectations.
- Creating Sustainable ValueOrganizations recognize the importance of creating sustainable value for long-term success and financial strength.
- Driving Performance and TransformationContinuous improvement and adaptability are essential for organizations to meet current and future requirements.
Results
- Stakeholder PerceptionsThis criterion focuses on the results based on feedback from key stakeholders about their experiences with the organization.
- Strategic and Operational PerformanceThis criterion evaluates the organization’s performance in terms of fulfilling its purpose, delivering its strategy, and ensuring its fitness for the future.
Benefits of Using the EFQM Excellence Model
Adopting the EFQM Excellence Model offers several benefits:
- Defines organizational purpose and culture
- Fosters strong leadership
- Promotes agile practices
- Addresses unique organizational challenges
- Enables forecasting for the future
Conclusion
The EFQM Excellence Model is a valuable tool that assists organizations in assessing their performance, identifying areas for improvement, and achieving excellence. By embracing the concepts outlined in the model, organizations can enhance their effectiveness, competitiveness, and long-term sustainability.
Sources
- EFQM Excellence Model
- The EFQM Excellence Model 2020: A Business Improvement Framework
- The EFQM Excellence Model
FAQs
What is the purpose of the EFQM Excellence Model?
The EFQM Excellence Model is a framework that helps organizations assess and improve their performance to achieve excellence.
What are the three fundamental questions that the 2020 EFQM Excellence Model focuses on?
The three fundamental questions are:
- Why: What is the organization’s purpose, vision, and strategy?
- How: How does the organization execute its strategy and achieve its goals?
- What: What are the organization’s results and how do they align with its objectives?
What are the seven criteria of the EFQM Excellence Model?
The seven criteria are:
- Purpose, Vision, and Strategy
- Organizational Culture and Leadership
- Engaging Stakeholders
- Creating Sustainable Value
- Driving Performance and Transformation
- Stakeholder Perceptions
- Strategic and Operational Performance
What are the benefits of using the EFQM Excellence Model?
Benefits include:
- Defining organizational purpose and culture
- Fostering strong leadership
- Promoting agile practices
- Addressing unique organizational challenges
- Enabling forecasting for the future
How can organizations use the EFQM Excellence Model?
Organizations can use the model to:
- Assess their current performance
- Identify areas for improvement
- Develop and implement improvement plans
- Monitor progress and achieve excellence
What is the difference between Direction, Execution, and Results in the EFQM Excellence Model?
Direction focuses on the organization’s purpose, vision, strategy, and culture. Execution encompasses how the organization implements its strategy and engages with stakeholders. Results evaluate the outcomes of the organization’s efforts.
How can organizations engage stakeholders effectively according to the EFQM Excellence Model?
Organizations should identify key stakeholders, understand their needs and expectations, and develop strategies to engage with them effectively.
What is the importance of creating sustainable value in the EFQM Excellence Model?
Creating sustainable value is crucial for long-term success and financial strength. Organizations should consider the environmental, social, and economic impact of their activities.