Assessing For Excellence - EFQM 2010

AssEssing For ExcEllEncE

A practical guide for successfully developing, executing and reviewing an Assessment strategy for your organisation

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© EFQM 2010No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means (be this electronically, mechanically, through photocopy or recording, or otherwise) without either the prior written permission of, or a license permitting restricted copying and use for a third party, from the publisher.

EFQM sHArEs WHAT WorKsEFQM is a not for profit membership foundation. For the past twenty years we have shared what works between our member organisations as a way to help them implement their strategies. EFQM brings together organisations striving for Sustainable Excellence.

Through our network of members comprising private and public organisations of every size and sector, many active around the world, EFQM applies its know-how and extracts outstanding approaches by engaging with executives and front-line managers.

EFQM is the custodian of the EFQM Excellence Model, a non-prescriptive framework that can be used to gain an holistic view of any organisation regardless of size, sector or maturity. Over the past 20 years, the EFQM Excellence Model has been a blueprint for EFQM members and organisations across and beyond Europe to develop a culture of excellence, access good practices, drive innovation and improve their results. Those organisations have become more attentive to the needs of their stakeholders. They have learned how to learn, innovate and improve their overall performance. Their leaders have increased their abilities to take informed decisions and to understand the drivers of their strategy. Many of those organisations have acted as role models for other organisations, winning management practices have been re-used and adapted through EFQM “sharing what works”. This has led to a significant reduction of waste, increased economic efficiencies and improved societal relations.

EFQM is now actively helping to prepare a new generation of business leaders by offering training and develop-ment opportunities built on practice-based learning and exchange between organisations. Our exchanges are underpinned by shared tools for assessment, calibrated during two decades of use within organisations and as the basis for discerning the EFQM Excellence Award, Europe’s most prestigious award for organisations.

Look for the stamp to ensure you are using the present version of the EFQM Excellence Model.

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ContentsExEcutivE SummAry 3

thE EFQm ExcEllEncE modEl 4

thE FundAmEntAl concEptS oF ExcEllEncE 5

introduction 6

purpoSE 6

AudiEncE 6

1. SElF-ASSESSmEnt And thE StrAtEgic Fit 7 1.1. The world we live in today 7 1.2. The position of Self-Assessment in the strategy development process 7 1.3. Using the EFQM Excellence Model to look forward 8

2. thE EFQm dEFinition oF orgAniSAtionAl (pErFormAncE) ASSESSmEnt 8

3. WhAt ArE thE bEnEFitS oF SElF-ASSESSmEnt? 8

4. hoW doES SElF-ASSESSmEnt Fit With othEr mAnAgEmEnt procESSES And initiAtivES in my orgAniSAtion? 9

5. Which SElF-ASSESSmEnt tEchniQuE iS thE right onE For my orgAniSAtion? 10 5.1. Desired Outcomes 10 5.2. Current Culture 10 5.3. Making the selection 10 5.4. Self-Assessment Variations: 11 5.5. Final comments on the “best” technique for your organisation 12 6. hoW do i conduct A SElF-ASSESSmEnt? 12 6.1. The generic 8-step process 12 6.2. Step 1 – Gain & retain management commitment 12 6.3. Step 2 – Develop and deploy the communications strategy 13 6.4. Step 3 – Plan for Self-Assessment 14 6.5. Step 4 – Select and train people directly involved in the process 156.6. Step 5 – Conduct Self-Assessment 176.7. Step 6 – Consider Outcomes & Prioritise 196.8. Step 7 – Establish and Implement an Action Plan 226.9. Step 8 – Monitor Action Plan Progress and Review the Self-Assessment process 22

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concluding commEntS 24

introduction to AppEndicES 1-13 25

Appendix 1: Questionnaires as a technique for Self-Assessment 26 Appendix 2: Workshops as a technique for Self-Assessment 29 Appendix 3: Business Excellence Matrix (B.E.M.) as a technique for Self-Assessment 31 Appendix 4: Award Simulation as a technique for Self-Assessment 31 Appendix 5: EFQM’s Levels of Excellence Recognition Scheme 32 Appendix 6: RADAR Scoring Matrix Results 34 Appendix 7: RADAR Scoring Matrix Enablers 35 Appendix 8: Scoring Summary Sheet 36 Appendix 9: What does good look like? Scoring Profiles from EEA 37

EFQm gloSSAry oF tErmS 40

FurthEr rEAdingS 42

our oFFEringS 42

AcknoWlEdgEmEntS 43

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ExEcutivE Summarythe achievement of excellence is not an abstract theory; it relates to an organisation’s tangible achievements in what it does, how it does it, the results it gets and the confidence that these results will be sustained in the future. Achieving excellence is hard enough at the best of times; sustaining it in today’s world of increasing global competition, rapid technological innovation, changing processes and frequent movement in economic, social and customer environments, is even harder.

providing evidence of achievement in terms of financial results is necessary but insufficient. Enlightened organisations understand that in addition to demonstrating the outcomes of past financial performance, their results must also include data and feedback from other stakeholders that will provide predictive indications of future financial performance. these leading indicators include measured excellence in customer satisfaction and loyalty; people motivation and capability; and the positive perceptions of the wider community.

to create confidence that positive results can be sustained, any organisation can search for evidence that actions and efforts are soundly based, systematic, and continuously reviewed and improved. the challenge goes further than this though. corporate confidence is also based on an organisation’s ability, own insight and knowledge of its Strengths and Areas for improvement, particularly in relation to its ability to identify and develop strategies and align the organisation to deliver those strategies to enhance performance.

using a process EFQm calls Self-Assessment organisations have the possibility to produce a comprehensive picture of their overall fitness at a given moment in time. this picture, which gives valuable feedback on the effectiveness and efficiency the organisation’s approaches across all its activities, provides a powerful driver for great meaningful improvement.