Introducing the EFQM Model (Public)

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    Introducing theEFQM Excellence Model

    Prepared by EFQM

    February 2011

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    What is EFQM?

    EFQMisanonprofitfoundation,basedinBrussels.

    Itwasformedin1988byagroupofleading

    European

    organisations. Wearethecustodians

    oftheEFQMExcellenceModel.

    Togetherwith

    our

    Europeanpartners,wehave30,000memberorganisations.

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    The need for a Model

    3

    Giventhecomplexitiesoftodaysinterconnectedworld,isolatedeffortsarenolongereffective.

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    EFQM Excellence Model 2010

    Excellentorganisationsachieveandsustainsuperiorlevelsofperformancethatmeetorexceedtheexpectationsofalltheirstakeholders.

    Toachieve

    sustainable

    success,

    EFQM

    providesguidancethroughasetofthreeintegratedcomponents:

    TheFundamentalConceptsofExcellence:Theunderlyingprincipleswhicharetheessentialfoundationof

    achievingsustainable

    excellence

    for

    anyorganisation.

    TheEFQMExcellenceModel:AframeworktohelporganisationstoconverttheFundamentalConceptsandRADARthinkingintopractice.

    RADARlogic:

    A

    simple

    but

    powerful

    toolfordrivingsystematicimprovementinallareasoftheorganisation.

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    Developing the Model

    CustomerExperience

    CorporateGovernance

    InvestingintheFuture

    Sustainability

    OrganisationalAgility

    TalentManagement

    StakeholderFocus

    Innovation

    EmployeeEngagement

    ProcessOptimisation

    ResultsDriven

    CreativityResourcePlanning

    Flexibility

    Alignment

    OperationalEfficiency

    ManagingChange

    Diversity

    Leadership

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    The Fundamental Concepts of Excellence

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    Concept Definitions (1)

    AchievingBalancedResults

    ExcellentorganisationsmeettheirMissionandprogress

    towardstheirVisionthroughplanningandachievinga

    balancedsetofresultsthatmeetboththeshortandlong

    termneedsoftheirstakeholdersand,whererelevant,

    exceedthem.

    AddingValueforCustomers

    Excellentorganisationsknowthatcustomersaretheir

    primaryreason

    for

    being

    and

    strive

    to

    innovate

    and

    create

    valueforthembyunderstandingandanticipatingtheir

    needsandexpectations.

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    Concept Definitions (2)

    LeadingwithVision,Inspiration&Integrity

    Excellentorganisationshaveleaderswhoshapethefutureand

    make

    it

    happen,

    acting

    as

    role

    models

    for

    its

    values

    andethics.

    ManagingbyProcess

    Excellentorganisationsaremanagedthroughstructured

    andstrategicallyalignedprocessesusingfactbased

    decisionmakingtocreatebalancedandsustainedresults.

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    Concept Definitions (3)

    SucceedingthroughPeople

    Excellentorganisationsvaluetheirpeopleandcreatea

    cultureof

    empowerment

    for

    the

    balanced

    achievement

    of

    organisationalandpersonalgoals.

    NurturingCreativity&Innovation

    Excellentorganisations

    generate

    increased

    value

    and

    levels

    ofperformancethroughcontinualandsystematicinnovationbyharnessingthecreativityoftheirstakeholders.

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    Concept Definitions (4)

    BuildingPartnerships

    Excellentorganisationsseek,developandmaintain

    trustingrelationships

    with

    various

    partners

    to

    ensure

    mutualsuccess.Thesepartnershipsmaybeformedwithcustomers,society,keysuppliers,educationalbodiesorNonGovernmentalOrganisations(NGO).

    TakingResponsibilityforaSustainableFuture

    Excellentorganisationsembedwithintheircultureanethicalmindset,clearvaluesandthehigheststandardsfororganisationalbehaviour,allofwhichenablethemtostriveforeconomic,socialandecologicalsustainability.

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    RADAR

    DefinetheRESULTS

    youwanttoachieve

    aspartofyour

    strategy.

    Developanintegrated

    setofAPPROACHES

    thatwilldeliverthese

    results.

    DEPLOYthe

    approachesina

    systematicway.

    ASSESS&REFINEthe

    approachesbasedon

    analysisoftheresults

    achievedandlearning

    activities.

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    EFQM Model Criteria

    TheEFQMExcellenceModelallowspeopletounderstandthecauseandeffectrelationshipsbetweenwhattheirorganisationdoes(theEnablers)andtheResultsitachieves.

    TheModelisnonprescriptiveandcanbeappliedtoanyorganisation,regardlessofsize,

    sector

    or

    maturity.

    Toachievesustainedsuccess,anyorganisationneedsstrongleadershipandclearstrategicdirection. Theyneedtodevelopandimprovetheirpeople,partnershipsandprocessestodelivervalueaddingproductsandservicestotheircustomers.

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    Enabler Criteria (2)

    Partnerships&Resources

    Excellentorganisationsplanandmanageexternal

    partnerships,suppliersandinternalresourcesinordertosupportstrategyandpoliciesandtheeffectiveoperation

    ofprocesses.

    Processes,Products

    &

    Services

    Excellentorganisationsdesign,manageandimprovetheir

    processes,productsandservicestogenerateincreasing

    valuefor

    customers

    and

    other

    stakeholders.

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    Results Criteria (1)

    CustomerResults

    Excellentorganisationsdevelopandagreeasetof

    performanceindicators

    and

    related

    outcomes

    to

    determinethesuccessfuldeploymentoftheirstrategyandsupportingpolicies,basedontheneedsandexpectationsoftheircustomers.

    PeopleResults

    Excellentorganisations developandagreeasetofperformanceindicatorsandrelatedoutcomesto

    determinethe

    successful

    deployment

    of

    their

    strategy

    and

    supportingpolicies,basedontheneedsandexpectationsoftheirpeople.

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    Results Criteria (2)

    SocietyResults

    Excellentorganisations developandagreeasetof

    performanceindicators

    and

    related

    outcomes

    to

    determinethesuccessfuldeploymentoftheirsocietalandecologicalstrategyandrelatedpolicies,basedontheneedsandexpectationsoftherelevantexternal

    stakeholders.

    KeyResults

    Excellentorganisationsdevelopandagreeasetofkey

    financialand

    non

    financial

    results

    to

    determine

    the

    successfuldeploymentoftheirstrategy,basedontheneedsandexpectationsoftheirkeystakeholders.

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    The Model in Action

    %Profit

    %Leads

    Converted

    Repurchase

    Rate

    TotalExpenses

    GenerateSales

    DevelopNew

    Offerings

    ReduceSupply

    ChainCosts

    Define&

    Manage

    Change

    Improve

    Profitability

    Reduce

    Recruitment

    Costs

    Productivity

    Employee

    Engagement

    Manage&

    Motivate

    People

    Strategy

    Outsource

    NonCore

    Processes

    ReviewReward

    &Benefits

    Improve

    Process

    Efficiency

    SupplierCosts

    Manage

    Budgets&

    Cashflow

    Manage

    Customer

    Relationship

    Turnover

    Energy

    Consumption

    Waste

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    Thank you

    [email protected]

    www.efqm.org