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EFQM Excellence Model or Business Excellence Model
Reflect on areas of management and quality thinking, place more emphasis on customer and market focus. The results of Quality Management is defined in terms of “people results”, “customer results”, “society results” and “key performance results” which are achieved by a number of “enablers”. These enablers are leadership and constancy of policy, purpose, and strategy and how the organisation develops its people, partnerships, resources and how the organisation organize the business process.
The EFQM Excellence Model incorporates these ideas and the five (5) enablers are concerned with how results are being achieved, while four (4) results are what the was achieved.
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EFQM Excellence Model |
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Enablers |
Results |
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| 1] Leadership:
How leaders develop and facilitate the achievement of the mission and vision, develop values required for long-term success and implement these through appropriate actions and behaviour, and are personally involved in ensuring that the organisation’s management system is developed and implemented. |
2] People: How the organisation manages, develops and releases the knowledge and full potential of its people. | 5] Processes: How the organisation designs, manages and improves its processes in order to support its policy and strategy and fully satisfy, and generate increasing value for, its customers and other stakeholders. | 6] People Results: This covers employees’ motivation, satisfaction, performance and the services the organisation provides for its people. | 9] Key Performance Results: This shows the financial and non-financial outcomes of the organisation’s planned performance, including such things as cash flow, profit, meeting budgets, success rates and the value of intellectual property. |
| 3] Policy & Strategy: How the organisation implements its mission and vision through a clear stakeholder-focused strategy, supported by relevant policies, plans, objectives, targets and processes. | 7] Customer Results: This includes customer’s loyalty and their perceptions of the organisation’s image, product and services, sales and after-sales support. | |||
| 4] Partnership & Resources:
How the organisation plans and manages its external partnerships and internal resources to supports its policy and strategy and the effective operation of its processes. |
8] Society Results:
This relates to the organisation’s performance as a responsible citizen, its involvement in the community in which it operates, and any recognition it might have received. _______________ |
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The EFQM Excellence Model originally placed emphasis on a generic set of weighting of the nine categories but organisations can allocate their own weighting in a rationale and systematic manner.
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Operational Efficiency; Helps improve supply chain performance. (Slack et al, 2007)
Agility; The ability of an operation to respond quickly at low cost as market requirements change. (Slack et al, 2007)
Lean; An approach to operations management that emphasises the continual elimination of waste of all types, often used interchangeable with just-in-time (JIT); it is more an overall philosophy whereas JIT is usually used to indicate an approach to planning and control that adopts lean principles. (Slack et al, 2007)
Six Sigma is an approach to improvement and quality management that originated in the Motorola Company but which was widely popularised by its adoption in the GE Company in America. Although based on traditional statistical process control, it is now far broader “philosophy of improvement” that recommends a particular approach to measuring, improving and managing quality and operations performance generally. (Slack et al, 2007)
Dynamic Capabilities; Ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage. (Besanko et al, 2010)
Continuous Improvement; Continuous improvement is a total quality management concept based on theories developed by Edward Demming and Walter Shewart. The key principles of continuous improvement relate to four sequential steps in characterising the performance of a Capability as Best Practice. For a capability to be considered as a Best Practice, it has to demonstrate industry-standard competencies in the process improvement stages (e.g. Standardise, Measure, Control and Continuous Improve). (Organisational Project Management Maturity Model – OPM3, 2008)
Control; A means of comparing actual performance with planned performance, analysing variances, assessing trends of effect process improvements, evaluating possible alternatives and recommending appropriate corrective action as needed. (The Standard for Programme Management, 2008)
Ability; The quality of being able to do something; physical, mental, financial or legal power to perform; a natural or acquired skill or talent. (Project Manager Competency Development Framework, 2007)
Assessments; A way to evaluate an organisation’s successful execution of processes and standards. For OPM3 the tools to assess organisational project management maturity include the self-assessment method and a comprehensive assessment. (Organisational Project Management Maturity Model – OPM3, 2008)
Assurance; All the systematic actions necessary to provide confidence that the target (system, process, organisation, programme, project, outcome, benefit, capability, product output, deliverable) is appropriate. Appropriateness might be defined subjectively or objectively in different circumstances. The implication is that assurance will have a level of independence from what is being assured. (OGC, 2008 – P3O)
Audits; Audits measure outcomes resulting from those features and conditions. An audit in the project management environment, in general, will measure results and identify the contributing causes to those results. (Hill, G. M., 2008)
Audit Plan; A document that describes the objectives and timing for audits and is updated with the results of each audit. (The Standard for Programme Management, 2008)
Authority; The right to apply project resources, expend funds, make decisions, or give approvals. (A Guide to the Project Management Body of Knowledge – PMBOK 2008)
Balance Scorecard (BSC); The balanced-scorecard evaluation approach developed by Kaplan and Norton (1992) presents a whole organisation perspective in four evaluation areas: (i) Financial perspective, (ii) Business process perspective, (iii) Customer perspective & (iv) Learning and growth perspective. (Hill, G. M., 2008). A framework for setting and monitoring business performance. Metrics are structures according to customer issues, internal efficiency measures, financial measures and innovation. (Bocij P. et al, 2008). An approach to organisational effectiveness that uses a range of quantitative and qualitative measures to assess performance. (Huczynski and Buchanan, 2007). The objectives and measures on a Balanced Scorecard should be derived from the business unit’s strategy. (Kaplan and Norton, 1996)
Metrics; Metrics keep stakeholders informed as to the status of the project. Metrics help to determine both present, prediction of the future and provide an early warning system that allows the project managers sufficient time to make course corrections. Metrics can function as risk triggers such that the impact of downstream risk can be minimised. (Kerzner, 2011)
Measure; Measurement involves identifying what to measure as well as actually collecting the measures that would help you understand if the process is operating within acceptable limits. When the Capability description or title includes some derivative of the word “measure” or “identify” then it is probably a measurement Capability of the process. The progression of Capabilities generally includes determining what to measure, measuring it, and analysing the results. When used in evaluating Capability maturities, the application of measure activities constitutes the second stage of the OPM3 SMCI quality management model. (Organisational Project Management Maturity Model – OPM3, 2008)
Monitor; Collect project performance data with respect to a plan, produce performance measures and report and disseminate performance information. (A Guide to the Project Management Body of Knowledge – PMBOK, 2008)
Monitoring and Controlling Processes [Programme Management Process Group] = Those processes performed to measure and monitor programme execution so that corrective action can be taken when necessary to control the execution of the phase or programme. (The Standard for Programme Management, 2008)
Evaluation; An orderly examination of progress at each level of Objective using evidence. Examines the validity of hypotheses, and identifies redesign and replanning actions. Evaluation examines Outcomes-Purpose and Purpose-Goal linkages, while monitoring examines the Input-Outcome linkage. (Schmidt T., 2009)
Validation; The assurance that a product, service or system meets the needs of the customer and other identified stakeholders. It often involves acceptance and suitability with external customers. (A Guide to the Project Management Body of Knowledge – PMBOK, 2008)
Verification; The evaluation of whether or not a product, service or system complies with a regulation, requirement, specification or imposed condition. It is often an internal process. (A Guide to the Project Management Body of Knowledge – PMBOK, 2008)
Benchmarks; This describes the process of testing the performance of computer equipment. Having carried out a series of benchmark tests, the results can be compared against similar items in order to make the best selection. (Bocij P. et al, 2008)
Productivity; The ration of what is produced by an operation or process to what is required to produce it, that is, the output from the operation divided by the input to the operation. (Slack et al, 2007)
Productivity Paradox; Research results indicating a poor correlation between organisational investment in information systems and organisational performance measured by return on equity. (Bocij P. et al, 2008)
Kaizen; The Japanese term for “improvement”, an element within total quality management in which employees are given responsibility, within limits, to suggest incremental changes to their work practices. (Huczynski and Buchanan, 2007)
Synergy; The positive or negative result of the interaction of two or more components, producing an outcome that is different from the sum of the individual components. (Huczynski and Buchanan, 2007)
System; Something that functions by virtue of the interdependence of its component parts. (Huczynski and Buchanan, 2007). An interrelated set of regularly interacting or interdependent components created to accomplish a define objective, with defined and maintained relationships among its components, and the whole producing or operating better than the simple sum of its components. Systems may be either physically process based or management process based, or more commonly a combination of both. Systems for project management are composed of project management processes, techniques, methodologies and tools operated by the project management team. (Practice Standard for Scheduling, 2011)
Systemisation; The extent to which standard procedures are made explicit. (Slack et al, 2007)
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Supply Chain; A linkage or strand of operations that provides goods and services through to end customers; within a supply network several supply chains will cross through an individual operation. (Slack et al, 2007)
Value Chain; A concept, developed by Michael Porter, which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service. (Besanko et al, 2010)
Vertical Integration; The extent to which an operation chooses to own the network of processes that produce a product or service, the term is often associated with the “do or buy” decision. (Slack et al, 2007)
Time to Market (TTM); The elapsed time taken for the whole design activity, from concept through to market introduction. (Slack et al, 2007)
Resources; Firm-specific assets such as patents and trademarks, brand-name reputation, installed base, and organisational culture. Resources can directly affect the ability of a firm to create more value than other firms and can also indirectly impact value-creation because they serve as the basis of the firm’s capabilities. (Besanko et al, 2010)
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Lean Six Sigma provides a rigorous and structured approach to help manage and improve performance, e.g. improveing the process flow (theory of constraints), tackling waste & reducing variation.
The Lean Six Sigma Improvement Model; DMAIC
DEFINE
MEASURE
ANALYSE
IMPROVE
CONTROL
REVIEWS
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See Also Blog; Lean Six Sigma
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