EFQM

EFQM (the European Foundation for Quality Management) is a not-for-profit membership foundation in Brussels, established in 1989 to increase the competitiveness of the European economy. The initial impetus for forming EFQM was a response to the work of W. Edwards Deming and the development of the concepts of Total Quality Management.

AbbreviationEFQM
MottoLeading Excellence
FormationSeptember 15, 1988 (1988-09-15)
FoundersJacques Delors, Umberto Agnelli, Carlo De Benedetti, Carl Hahn, sv:Anders Scharp, Jan F.A. de Soet, nl:Cor van der Klugt, Serge Dassault, Heini Lippuner, fr:Raymond Lévy, Francis Lorentz, Konrad Eckert, Iain Vallance, Fritz Fahrni, R. Morf
Legal statusNot-for-profit member foundation
PurposePromotion of business excellence
HeadquartersBrussels, Belgium
Coordinates50.86878°N 4.40423°E / 50.86878; 4.40423
Region served
Europe
ServicesTraining, organizational assessments
CEO
Russell Longmuir
Chairman
Andreas Wendt
Main organ
Board of directors
Staff
20
Websitewww.efqm.org
Formerly called
European Foundation for Quality Management

History

The intention to found EFQM was signed in October 1988 by 14 European business leaders. The 14 CEOs were:

Company Representative Business Leader
Robert Bosch GmbH Mr. K. Eckert
British Telecommunications plc Mr. I.D.T. Vallance
Bull SA Mr. F. Lorentz
Ciba-Geigy AG Mr. H. Lippuner
Dassault Aviation Mr. S. Dassault
AB Electrolux Mr. A. Scharp
Fiat Auto SpA Mr. U. Agnelli
KLM Mr. J.F.A. de Soet
Nestlé Mr. R. Morf
C. Olivetti & C., SpA Mr. C. De Benedetti
Philips Mr. C.J. van der Klugt
Renault Mr. R.H. Lévy
Sulzer AG Mr. F. Fahrni
Volkswagen AG Mr. Carl H. Hahn

The foundation was formed in 1989, with 67 members. The first version of the EFQM Excellence Model was created by a group of experts from various sectors and academic institutions and launched in 1992. It acted as the framework for assessing applications for the European Quality Award, the transnational quality awards of Europe.

Activities

EFQM provides networking, education, and awards by using a framework called the EFQM Excellence Model.

EFQM excellence model

The EFQM excellence model is a non-prescriptive business excellence framework for organizational management, promoted by the EFQM and designed to help organizations to become more competitive.

Regardless of sector, size, structure or maturity, organizations need to establish appropriate management systems to be successful. The EFQM excellence model is a tool to help organizations do this by measuring where they are on the path to excellence, helping them understand the gaps, and promoting solutions.

A number of research studies have investigated the correlation between the adoption of holistic models such as the EFQM excellence model, and improved organizational results. The majority of such studies show a positive link. One tangentially related study was carried out by Vinod Singhal of the Georgia Institute of Technology and Kevin Hendricks of the College of William and Mary.[1]

The EFQM model provides a framework allowing organisations to determine their current "level of excellence" and where they need to improve their efforts. The model also helps to ensure that business decisions incorporate the needs of all stakeholders and are aligned with the organisation's objectives.

The EFQM model acts as a common reference. It provides its users with a set of performance improvement tools in order for them to achieve and sustain business success. The model is regularly reviewed to incorporate new ideas, concepts and learning. The last revision was published in 2013.[2]

The EFQM model is used to obtain a complete view of the organizational performance and to understand the relations of cause and effects between what organisations do and the results they achieve.

The EFQM excellence model uses RADAR logic, where the logic helps organisations to figure out the impact of their strategies & action towards goal management. Understandings the gaps is what exactly this logic targets & figuring out right solutions for it.

In comparison with the other counterparts ( OKR ), EFQM relatively performs well but organisations need to use both the models to cater different section of employees.

Components

The model consists of three components:[3]

  • Eight core values or key management principles that drive sustainable success[4]
    1. Adding value for customers
    2. Creating a sustainable future
    3. Developing organisational capability
    4. Harnessing creativity and innovation
    5. Leading with vision, inspiration and integrity
    6. Managing with agility
    7. Succeeding through the talent of people
    8. Sustaining outstanding results
  • Nine criteria, separated into five "enablers" (leadership, people, strategy, partnerships and resources, and processes, products and services) and four "results" (people, customer, society, and business results)[5][6]
  • RADAR logic,[7] continuous improvement cycle used by EFQM. It was originally derived from the PDCA cycle.
    • Determine the Results aimed at as part of the strategy
    • Plan and develop a set of Approaches to deliver the required results now and in the future
    • Deploy the approaches in a systematic way to ensure implementation
    • Assess and Refine the deployed approaches based on monitoring and analysis of the results achieved and ongoing learning

Application

The model is used by about 30000 organisations across Europe.[8] In recent years, more and more countries started implementing the Model, especially across Middle East and South America.

All European organisations, both in the public and private sectors, are facing new challenges. The increasing pressure to compete on a global stage with limited resources means we all have to work together to secure our future prosperity, and that of generations to come ... The EFQM Excellence Model provides a framework that encourages cooperation, collaboration and innovation that we will need to ensure this goal is achieved

— Herman Van Rompuy[8]

EFQM Excellence Award

The EFQM Excellence Award is run annually by EFQM. It is designed to recognize organizations that have achieved an outstanding level of sustainable excellence, based on assessment against the EFQM Excellence Model.[9]

See also

References
  1. K. Hendricks & V. Singhal (1996). "Quality Awards and the Market Value of the Firm: An Empirical Investigation". Management Science. 42 (3): 415–436. doi:10.1287/mnsc.42.3.415. We note that the abnormal returns generated by the quality award winning announcements provide a lower bound for the impact of implementing an effective quality award improvement program. Our results show that the stock market reacts positively to quality award announcements
  2. EFQM Excellence Model 2013, multiple authors, EFQM
  3. "EFQM Excellence Model". Archived from the original on 2016-03-14. Retrieved 2014-01-03.
  4. "Fundamental Concepts". EFQM. 9 July 2013. Archived from the original on 4 December 2016. Retrieved 2017-01-01.
  5. "Model Criteria". EFQM. 7 May 2013. Archived from the original on 28 November 2016. Retrieved 2017-01-01.
  6. ManagementMania. "EFQM Excellence Model". ManagementMania.com. Retrieved 2017-01-01.
  7. "RADAR Logic". EFQM. 7 May 2013. Archived from the original on 4 January 2017. Retrieved 2017-01-01.
  8. EFQM (2012). "Revised EFQM Model to Help Increase Europe's Competitiveness". www.prnewswire.com. Retrieved 2017-01-01.
  9. "Kostka in Calabria awarded". Retrieved 1 January 2017.
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