EFQM and Lean Together in Harmony

Overview

Lean and the EFQM Excellence Model are 2 complementary tools. In the following presentation you’ll find a description of both tools and an overview of how they work together.

& LEAN

Who do you work for?

3. People

2. Customers

1. Shareholders

4. Society

Return on investment Optimise profitability Sustainable financial growth

Value-adding products & services Excellent service

Opportunities to develop & grow Work / life balance Pride in Organisation

Brand reputation Ethical behaviour Transparent communication

Lead

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Th

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Role of the EFQM Excellence ModelIn sum, we work for all these stakeholders. Of course, we can’t deliver everything that everyone wants all at the time. We need a dialogue, we need to prioritise, we need to continuously evolve. The EFQM Excellence Model is a framework organisations implement to drive continuous improvement, bringing together all the components of your management system (i.e. leadership, HR, Sustainability and customer results).

Through assessments against the EFQM Model, you focus on what really matters, on what really is driving results. You will identify opportunities to grow and you’ll make sure to make the best strategic decisions. Finally, our framework is holistic. The Model works as an embralla that covers a number of tools (such as ISO, balanced scorecard, etc.) to ensure that all initiatives don’t operate on a stand-alone basis, but rather interlinked or parallel towards the same goal.

What is Lean?

Lean is widely used as an approach for improving process performance and enhancing the value added to the customer and other stakeholders, not just in manufacturing but increasingly in the services sector.

Lean is a practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for.

A Common Background

The EFQM Model and Lean have a common background in Total Quality Management: People centric: Not only are customers a primary consideration, but everyone

connected with the organisation is a part of the equation. Long term view: TQM is a long term process. It can take up to 5 years to fully

convert a company to TQM methodology. Every year the mission statement is reviewed and revised.

Customer focus: An organisation needs to satisfy external but also internal customer needs (providing information, quickly responding to questions, creating surveys, etc.)

Performance oriented: Focus on proactive problem solving and continuous improvement.

Continuous improvement: TQM is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution of work elements on the shop floor.

EFQM & Lean in Harmony

Where the EFQM Excellence Model is used to determine a company’s strategic direction or to assess the success of the current strategy implementation; Lean is used to structure the development and the delivery of the improvements highlighted within an EFQM assessment. Lean works best with direction and vision, something that the EFQM model helps to provide.

EFQM

Lean

Identifying performance gaps & opportunities to improve

Structuring the delivery of improvements

Mapping Lean across the Model

ChangeImproveLearn

Leadership

Strategy

Partnership & Resources

Processes, Products& Services

People Results Key Results

Customer Results

Society Results

People

Cause Effect

Understanding it’s about people: engagement and empowerment

Management’s support to people’s proactivity (middle management’s and supervisor's buy in)

Top management’s commitment

Balance short- and long-term results

Communication and Change management

Business focus

Business oriented improvement measures

Lean leadership/ management

Aligning people measures and lean/strategic goals

Aligning lean goals to strategic objectives

Not limiting to kaizen events nor to lean six sigma one-of-a-time projects

Customer oriented improvement measures

To be agile through changes

Contact

EFQMAvenue des Olympiades, 2 1140 Brussels, BelgiumT: +32 2 775 3511@: info@efqm.org

www.efqm.org

We’d like to thank Prof. Vittorio Cesarotti, from the Universita degli Studi di Roma, for his valuable contributions to this document.

About EFQM

EFQM is committed to help organisations drive improvement through the use of the EFQM Excellence Model, a comprehensive management framework used by over 30 000 organisations in Europe. For the last 20 years, we manage the development of this Model, incorporating the experiences and learning from these organisations to ensure it reflects reality.

To help you implement our Model, we provide training, assessment tools and recognition. But our real talent comes from gathering good practices and integrating those within our portfolio. EFQM, a not-for-profit membership Foundation, aims to share what works, through case studies, online seminars, working groups, conferences and thematic events. We nurture a network of world-class organisations and their leaders who share our passion for business excellence.

We believe that the EFQM Model is a common framework that helps us all to improve our businesses. Sharing our member’s enthusiasm, their motivation and the results they achieve; that is what we work for at EFQM.

We also Recommend ….

The EFQM User Guide Using Lean within the EFQM Framework

Available free for members on our Knowledge Base.

Thank you!