EFQM Course For Beginners

My first step with the EFQM Excellence Model 2017/02/08, 16:36
My first step with Search this site
the EFQM
Excellence Model
EFQM Model
Criterion
Home
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources My First Step with EFQM
5. Processes, Products &
Services Excellence Model
6. Customer Results
7. People Results
Understand the EFQM Excellence Model
8. Society Results
and...perform your first assessment!
9. Business Results
Glossary of terms
WELCOME TO EFQM Excellence Model
Benefits of using the
EFQM Excellence Model
Self-Assessment
What is it? What can you get?
This free resource has been created to be your

More about EFQM
first introduction to the EFQM Excellence Model. Here, you will
Useful links not only learn about our Model's 9 Criteria, but you will also
be able to download a practical tool to perform an initial
assessment of your organisation. In addition, for people with
experience, you can share your knowledge with us by adding
your comments and modifying our text.
Why use our Model?
https://sites.google.com/site/myfirststepwithefqmmodel2010/ Page 1 of 4
If you are not familiar with the EFQM Model but you are willing
to improve your organisation, this is the first step to get
started! As previously stated, this is the first approach towards
Excellence, it is a simple tool and doesn't require any pre-
existing knowledge of EFQM and its Model.
How to use this website?
It is easy to use. You have links to each criterion, you just

have to click on it! Once you are in a criterion, you will find its
main characteristics, so that you will be able to start the
change in your organisation!
There is also a Glossary of Terms to help you better

understand the meaning of the expressions EFQM uses. Also,
there is a "Benefits of using the EFQM Excellence Model"
page where you will discover the positive effects of deploying
the Model in your organisation and you will be able to share
with us the specific benefits for your organisation.
Moreover, you have the great opportunity to assess your

performance in each criterion, so don't waste the opportunity
to know how good you are and what you need to do in each
area.
How to share your knowledge?
An additional aim of this site is to share knowledge. We want

you to contribute your knowledge. Once you are a registered
user, you can add text to each page of this site, insert
comments in every page and add attacments. So, don't
hesitate and show everyone your knowledge!
Why an assessment?
Our Assessment templates have been created to enable you

to assess the performance of your organisation. Assessment
is essential within the philosophy of EFQM. To reach a desired
excellent performance, you need to know where you are now,

so that you will identify the required changes and actions to
start the journey towards Excellence.
Why EFQM?
For the past twenty years we have shared what works

between our member organisations as a way to help them
implement their strategies: a mission which is as important as
ever.
Through our network of over 500 ambitious 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.
So, if you want to learn from the best and share your
knowledge with others, don't hesitate and join us!
The EFQM Excellence Model represented in the diagram above is a non-

prescriptive framework based on nine criteria. Five of these are "Enablers"
and four are "Results". The "Enabler" criteria cover what an organisation
does. The "Results" criteria cover what an organisation achieves and how it
does it. "Results" are caused by "Enablers" and "Enablers" are improved
using feedback from "Results".
The arrows emphasise the dynamic nature of the Model, showing innovation
and learning helping to improve the Enablers that, in turn, lead to improved
Results.
Each of the nine criteria has a definition, which explains the high level
meaning of that criterion.
More information: www.efqm.org
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1. Leadership - My first step with the EFQM Excellence Model 2017/02/07, 15:06
the EFQM
Excellence Model
EFQM Model Home >
Criterion
1. Leadership
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources
What is Leadership?
Services
1.1. Overview
6. Customer Results
The classic model of the good business leader is the top man who
7. People Results
directed and was in control of all aspects of his business. He
8. Society Results operated through a hierarchy of management and his organisa9on
9. Business Results had a fairly well-dened and right structure. This type of Leader
had some good points and survived throughout most of the 20th
Glossary of terms
century. But businesses today do not have the luxury of stability,
Benefits of using the they face an ever-increasing change in markets, customers and
technology.
Self-Assessment
Their core business is constantly under threat from newcomers to
More about EFQM the marketplace with a dierent business paradigm.

Useful links
Organisa9ons cannot aord to depend upon the Leadership of
individuals or a small elite of senior execu9ves to meet this
challenge alone. They need to harness the ideas, skills, energy, and
enthusiasm of their en9re team to succeed. Since the 1980s, the
concept and prac9ce of Leadership has evolved to meet this
challenge.
1.2. Who are the Leaders?
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/1-leadership Page 1 of 7

Not only the CEO, company directors, senior execu9ves, line
managers are Leaders. In order to gain exibility and
responsiveness, the empowerment to lead has to be cascaded
throughout the organisa9on. We will use the term Leader to
represent everyone that contributes to the management and
change process and leave you to consider who this should be in
your organisa9on.
1.3. What do Leaders do?

A Leader is not necessarily the manager although he or she could
be. She/he is however focused on achieving objec9ves through
people.

Most Leaders have a clear vision and are good at communica9ng it.
They are denitely agents for change and inspire and mo9vate.
Furthermore, they are role models for integrity, social responsibility
and ethical behaviour, both internally and externally, ensuring their
people adopt the highest standards of ethical behaviour.

How do you put Leadership into prac3ce?

2.1. Establish a Vision and Mission

One of the rst steps that the Leaders in an organisa9on need to
undertake is to establish why the organisa9on exists and what it
wants to achieve. If Leaders do not clarify and communicate the
Vision and Mission, there may be assumed and inaccurate purposes
for an organisa9on.

In order to get your Vision and Mission correct, you need to
consider your customers, your partners, the environment in which
you operate. You also need to involve your Leadership team in
evolving the Vision and Mission so that they feel ownership and
commitment to success in accomplishing them.

2.2. Ins9l Values

The Vision and Mission need the environment of your organisa9on
to nurture and support them. The values that you live by and the
culture of your organisa9on play an important part in ensuring that
you can achieve your goals.

2.3. Communica9on, Communica9on, Communica9on

Communica9on with your people to reinforce the Vision, Mission,
Values and Culture is necessary to ensure that the organisa9on is
working together.
Communica9on of the Policy and Strategy is necessary to
make sure that everyone is going in the same direc9on.
Communica9on is necessary to understand and sell to ones
customers.
Communica9on is necessary to understand and nego9ate
with ones suppliers.
Communica9on with your other Stakeholders is necessary to
maintain their trust in your organisa9on and engage with
them. You have to know who your dierent external
stakeholders groups are and develop approaches to
understand, an9cipate and respond to their dierent needs
and expecta9ons.

A good communica9on is a two-way process. As a Leader, it is your
role to communicate the right things, sending a clear message,
which is relevant and in context. It is important to pay a]en9on not
only to the words, but also your tone and facial and body
expressions. Furthermore, communica9on has to be at the right
9me and knowing who your target audience is.

In sta surveys, poor communica9on from leaders is one of the
most common causes of dissa9sfac9on. So it is important to get it
right. But in order to communicate eec9vely, you must understand
those that you are communica9ng with and choose the most
appropriate way to communicate.

2.4. Act as agents of change

In order to achieve Excellence, your organisa9on will have to
change. What is more, you will need to establish a culture that
accepts and welcomes change.

But change is uncomfortable. It takes away the familiar rou9nes. It
challenges your pre-concep9ons. It forces you to learn. In general,
people do not like and resist change.

As a leader, you have to be a facilitator and catalyst. The rst hurdle
is you yourself. You will need to change and welcome change in
order to help others to change. In this, if in nothing else, you will
need to lead the way and be a role model for others. You have to
be able to understand the internal and external drives of
organisa9onal change.

There is no one recipe for success but some ideas are:
Do something culturally symbolic, for example: inves9gate an
open door policy, empower people.
Do something structural within the organisa9on, for example:
make the oces open plan, redecorate.
Involve everyone: ask opinions on the changes, include
everyone in the process of dening your Vision and Mission.
Do something more fundamental, for example: restructure
your organisa9on around processes not func9ons, perform a
Self-Assessment.

You will need to be energe9c, enthusias9c, inspiring and mo9va9ng
to make these changes happen. You will need to support and coach
your people through the changes. You will demonstrate your
capability to learn quickly and respond rapidly with new ways of
working. You will also need pa9ence. Changes do not happen
overnight, people go through a cycle of change.

How do you review and improve Leadership?

3.1. Reviewing techniques

There are several techniques that can help you to measure your
ac9ons. You can use Sta and Customer Surveys, 360 Appraisal
or the Self-Assessment.

3.2. How to improve

Using one or more of the techniques above, you will have a list of
those areas that need improvement. You will also have a measure of
which are the most urgent to resolve. This is the 9me to involve
your colleagues and agree an improvement plan.

If you are s9ll at the beginning of your road to Excellence, you may
gain sucient ideas for ways to improve. But there are many
sources of ideas and training.

Another source of informa9on may be less familiar to you
Benchmarking. This involves comparing your organisa9on with
another and iden9fying points and Good Prac9ces which you could
use.
Now it's your turn!
What do you think about Leadeship?

Can you improve our information?
Any experiences to share with us?
You can add text, a new page, comments or attachments!
2. Strategy - My first step with the EFQM Excellence Model 2017/02/07, 15:07
the EFQM
Excellence Model
EFQM Model Home >
Criterion
2. Strategy
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources How do you know who your Stakeholders are and their
expectations of your organisation?
Services
No organisa*on operates in vacuum. It interacts with other
6. Customer Results
interested par*es, some welcome, some perhaps less so!
7. People Results

8. Society Results This grouping of interested par*es is o<en described as your set of
Stakeholders. Each organisa*on is unique and there is no single, all
9. Business Results
encompassing list that would summarise everyones Stakeholders in
Glossary of terms great detail. However, there are some generic groupings that are
applicable to all:
- Your Customers
Self-Assessment
- Your People
- Your Partners & Suppliers
More about EFQM
- The Society in which you operate (external indicators, economic,
Useful links market and societal trends,...)
- Those with an interest in the nancial performance of your
organisa*on, be it Shareholders, public sector, Budget holders
or Trustees, for instance.

Any organisa*on as it plans its future, should have a strategy that,
within the context of its Mission, is focused on its Stakeholders. So,
Strategy is based on understanding the needs and expecta*ons of
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/2-strategy Page 1 of 6
both stakeholders and the external environment, also

understanding internal performance and capabili*es. It is
responsibility of the organisa*on to ensure economic, societal and
ecological sustainability.

Having iden*ed who your Stakeholders are, the next challenge is
to create mechanisms and processes that will allow you to iden*fy
their current and future needs and expecta*ons.

At the simplest of levels, gathering this data will help inform you
during your planning process on what to Start, to Stop and to
Con*nue.

There is a range of tools and techniques that an organisa*on can
use to help it iden*fy the present and future needs of its
Stakeholders, for example: Surveys, Focus Groups, Scenario
Crea*ons, Benchmarking and SWOT analysis (Strengths,
Weaknesses, Opportuni*es, Threats).

The excellent organisa*ons set clear goals and objec*ves for
innova*on and rene their strategy in line with innova*on
achievements.

What information, from what sources, do you use to help
inform your future direction?

The EFQM Excellence Model, with its focus on taking a Stakeholder
approach to management, can help an organisa*on concentrate on
the vital few pieces of informa*on it needs rather than risk
drowning in data.

Nowhere is this beXer exemplied than in the clear linkage
between how an organisa*on could take the results of its
performance and planning its future direc*on. Knowing what your
current performance level is, how it compares with past
performance, how it compares in rela*on to your compe**on and
best in class is a powerful input to any debate on your organisa*ons

future direc*on.

How do you develop, review and update your plans for the
future?

Whoever is involved in the development of your future plans (it
depends on the size of your organisa*on) it is at this stage that the
informa*on gathered from your Stakeholders and other sources is
converted into a tangible strategy for moving forward.

The strategic plan should include informa*on on what is expected
to be achieved, the resources necessary to deliver it, the *mescales
for comple*on, the key processes involved, clarity on the ownership
of specic components within the strategy and the costs and
benets expected.

The Balanced Scorecard is a useful tool for helping to develop the
strategy further, helping the decision maker(s) ensure a holis*c view
of the business and take into account all Stakeholders' needs.

How do you deploy your plans for the future throughout
the organisation?

Having iden*ed the future direc*on and desired end state, an
organisa*on needs to have a way to deliver this end state. Good
Prac*ce organisa*ons achieve this by taking a Process Management
view of the world rather than one based on a tradi*onal func*onal
approach. Firstly they establish their key processes. Typically these
are the ones that deliver value to the external customer and other
iden*ed Stakeholders. They will reach agreement on the vital
ingredients required to help ensure the success of each of these key
processes. These vital ingredients are o<en called Cri*cal Success
Factors.

Good Prac*ce organisa*ons establish frameworks for managing

these key processes. The framework will need to be reviewed
regularly to make sure that it is s*ll "t for purpose". Allowing for
sector specic issues, one might reasonably expect the framework
to be reviewed at least annually through a process involving senior
execu*ves, process owners and others with knowledge about the
various processes.

How are your plans for the future communicated and
implemented?

Having determined the future direc*on based on a Stakeholder
focused approach, and iden*ed the key processes and Cri*cal
Success Factors, the next challenge is to make sure everyone in the
organisa*on understands the direc*on, the reasons why, plus their
own roles in the future.

Communica*on of the plans for the future is an important factor in
being successful and Good Prac*ce organisa*ons recognise that it is
not enough simply to send, for instance, e-mails to everyone, or
post a leXer to employees homes.

In Good Prac*ce organisa*ons, communica*on of the plans for the
future is recognised as a three way process: top down, boXom up
and sideways.

- The boXom up channel gives managers an opportunity to test
understanding and commitment.
- The sideways channel helps to reduce the risk of more than one
department or team assuming responsibili*es that are
inappropriate.

Good Prac*ce organisa*ons use a number of tools and techniques
to help them communicate the plans for the future. At the same
*me they make them relevant and meaningful to their people by
conver*ng them to specic objec*ves linked to the tasks that
individuals and teams perform. It is important to align people in

order to maximise their contribu*on. The strategy has to be
communicated with Stakeholders too.

Probably the three most widely used tools and techniques at the
moment for conver*ng plans into cascaded objec*ves in a linked
and integrated manner are:

- The Balanced Scorecard
- Dashboards
- Hoshin Planning

So, the strategy is deployed in a systema*c manner to achieve the
desired set of results, balancing short and long term objec*ves.
Now it's your turn!
What do you think about Strategy?


Anyone can learn from you.
What's more, download the Strategy Assessment

Template (attached below) and... perform your first
assessment!
FEEL FREE to contribute with your KNOWLEDGE! Any

new idea will be WELCOME!
3. People - My first step with the EFQM Excellence Model 2017/02/08, 13:55
the EFQM
Excellence Model
EFQM Model Home >
Criterion
3. People
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources Why People?

Services 1.1. Overview

6. Customer Results
People have always been essen4al to organisa4on, because they
7. People Results
provide inspira4on, crea4vity, vision and mo4va4on that keeps an
8. Society Results organisa4on alive. They provide the skills and competencies
necessary to make an organisa4on work. And of course they provide
9. Business Results
the labour that produces the goods and services that an
Glossary of terms organisa4on supplies. They are a major and oAen the most
important resource that an organisa4on has.
The post-Industrial Revolu4on model is obsolete, the economy is
Self-Assessment
changing to a new ways of working, where one of the major
determinants of an organisa4ons success is the intelligent use of
More about EFQM
knowledge.
Useful links
1.2. Who are your people?

You could say that your people are your full-4me paid employees.
This is of course true and for some organisa4ons this would be the
whole story. However, there are many other ways in which people
contribute to your organisa4on:

https://sites.google.com/site/myfirststepwithefqmmodel2010/home/3-people Page 1 of 8
- Have part-4me or piece-work contracts, short-term contracts

- Temporary labour to ll in for peaks in demand or sickness
- Sub-contractors
- Support sta: security guards, kitchen sta or cleaners

In some circumstances you may choose to work very closely with
your supplier or partner. Consider whether it is useful to integrate
some aspects of your people management, for example, training.

1.3. What do People mean to your organisa4on?

All Good Prac4ce organisa4ons recognise and value the vital
contribu4on that people make to their success. But this implies
that, in order to be successful, you have to ensure that you have the
people that you need. Even in these days of advanced technology,
without people your organisa4on does not exist. Its as easy and as
hard as that!

You also need to engage the energies and enthusiasm of your
people in the most eec4ve way.

How do you manage, develop and involve People in your
organisa5on?

2.1. Plan, manage and improve your People resource

You cannot determine what people you need unless you know what
you wish to achieve! This may seem obvious, but many
organisa4ons struggle on with the status quo without really
knowing what they are trying to do.

Ideally, you will already have started work on your Business Plan,
based on your Strategy, and have iden4ed objec4ves, targets and
priori4es. If not, think carefully whether you know what is expected.
It is possible that the requirements are the same as last year. But
the world is constantly changing. There are pressures from the
changing demands of customers, technology, legisla4on, not to

men4on nancial constraints. It is highly likely that you need to
adjust your people resource, either in numbers or by changing the
focus of their ac4vity.

Of course you need to involve your People in this planning process,
although many managers are reluctant to, because they think that
maybe the change upsets them. But your People have valuable
knowledge that you need and you need to understand the eect
that the changes will have on them.

Good Prac4ce organisa4ons integrate their review of People
resource within the planning cycle.

To improve your People resource, you need to consider how your
People are aligned to your Mission, Vision, strategic goals and
processes. Regardless of your organisa4onal structure, your People
should be allocated according to the priority of the process and
understand the processes to which they are contribu4ng.

Another aspect of managing People which no organisa4on can
aord to ignore is fairness. Equal opportuni4es regardless of race,
sex, creed or colour are required by many na4onal legisla4on. It is
always in an organisa4ons interest to ensure fairness and
transparency when dealing with its people as this minimises
suspicion, envy and the consequen4al loss of mo4va4on.

2.2. Develop your Peoples knowledge and competencies

- Choose the right People! It is very important to match your People
to the organisa4on and the specic job. The most common criteria
used to select People for a job are qualica4ons, technical skills and
experience. But these criteria are never the only considera4ons. In
many cases, providing that People have the basic skills needed and
the right aZtude to learning, they can oAen be trained in the
specics of a job. If they dont have the right approach and personal
culture, it is much more dicult to teach them to be friendly to

customers, co-operate with their team mates and accept change.

You also need to match the People you employ with the culture of
your organisa4on and vice-versa or they will nd it frustra4ng and
hard to integrate. There are many standard tools and techniques
that help to assess the suitability of individuals for a job, but before
using them, make sure that you have the following requirements
clearly in mind: the culture of your organisa4on, the competencies
required by the job and the approach an aZtude of the person that
you need.

- Appraise and review your people. In Good Prac4ce organisa4ons,
performance appraisal is a well-established and integral part of the
management and development of their people. Some of the main
objec4ves are: review past performance against targets, recognise
success, iden4fy skills and competencies, agree targets for future
performance and iden4fy training and personal development
needs. There is oAen a formal review on an annual or 6-monthly
basis. But this should not be seen as the only or main opportunity
for iden4fying or discussing performance which should be ongoing
throughout the year.

- Train your people: People that are not competent become less
inclined to help customers and colleagues in case their ignorance
becomes known. They also lose their pride in doing a job well and
have the impression that the company is not interested in them. So
this sets up a vicious circle of ignorance and results in dissa4sed,
de-mo4vated and poten4ally disrup4ve sta. Even people who can
do their current job will feel neglected and under-valued if you do
not take an interest in their personal and career development. So
there are very good prac4cal and nancial reasons to undertake
proper training.

Besides, training and development does not necessarily mean
sending People on a course, there are more op4ons: can be done in
the workplace using colleagues as mentors, Self-learning using

books and manuals, using computer and internet based training
packages,...

2.3. Involve and Empower your People

Involving and empowering your people is taking a risk, but the
rewards are a much more exible and eec4ve organisa4on,
improved performance and happier and more commi^ed people.

- Encourage teams: One of the most eec4ve ways of involving and
empowering People is helping them to build teams, but not in the
tradi4onal way of func4onal groups. Func4onal teams have a
tendency to focus on the func4on rather than the desired result,
they can have a narrow view of a problem because they do not
know what other departments do. A team can be dened as a
group of people ac4ng with a common purpose and shared
responsibility for the success or failure of their eorts.

- Empower your People: When empowerment is done properly, it
can be a great liberator of energy. It can mo4vate and expand
peoples horizons. It gives the organisa4on a great deal more
exibility and robustness against unexpected events. Empowerment
is giving people the right environment and training in which to make
their own reasoned decisions. It requires support and coaching and
seZng guidelines for their sphere of ac4on. It views power as a
collec4ve responsibility rather than an individuals preroga4ve.

2.4. Communicate with your people

Communica4on with your People is fundamental to achieving your
organisa4ons objec4ves. At the most basic level, if they dont know
what you want, how can they do it? But communica4on is much
more than conveying instruc4ons; it is the means of involving and
mo4va4ng your People.

There are many ways for geZng the message across, you will need
to choose the most eec4ve and appropriate technique baring in
mind the size of your organisa4on, the number of loca4ons that you
have and the distances between them.

2.5. Reward, recognise and care for your People

Good Prac4ce organisa4ons recognise that their rela4onship with
their People should go beyond the specics of the contract and the
nancial remunera4on. They acknowledge the value that the
person brings to the organisa4on through recognising, rewarding
and caring for them.

It is part of human nature to like to be recognised and rewarded for
doing something well. It makes people feel good about themselves
and their organisa4on. It mo4vates People to try again the next
4me. It is also good manners to thank People for a job well done. It
shows that you have no4ced their eorts and appreciated them.

You have to ensure a safe and healthy working environment for your
People, and encourage them, along with other stakeholders, to
par4cipate in ac4vi4es that contribute to wider society.

Rewarding, recognising and caring for your people is good for them.
But it is also good for the eec4ve working on your organisa4on, so
it is a win-win opportunity.

How do you review and improve your People management?

3.1. Reviewing techniques

Your people know how well you are doing at managing them. They
know both from the evidence of what is happening within the
organisa4on and also how they feel about it. They can give you
feedback on how well they are doing and also how this is impac4ng
the customers and the organisa4on.

There are several techniques that can help you to assess and
measure the eec4veness of your approach. Here are some
examples:

- Sta mee4ngs
- Sta Appraisals
- Sta Surveys
- Self-Assessment

Whichever method you choose, it is important to review the
eec4veness regularly. On a formal basis this should be at least
annually. But dont wait for a formal review. Make sure that you
keep in touch with your people on a regular basis monthly or even
weekly so that you can spot a problem before it has the chance to
grow.

3.2. How to improve

Using one or more of the techniques above, you will have a list of
those areas that need improvement. You will also have a measure of
which are the most urgent to resolve. This is the 4me to involve
your colleagues and agree an Improvement plan.
Now it's your turn!
What do you think about People?


What's more, download the People Assessment Template

(attached below) and...perform your first asessment!
4. Partnerships & Resources - My first step with the EFQM Excellence Model 2017/02/08, 13:56
the EFQM
Excellence Model
EFQM Model Home >
Criterion
4. Partnerships & Resources
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources Partnerships
Services
1.1. What do we mean by Partnerships?
6. Customer Results
We dene a partnership as a working rela;onship between 2 or
7. People Results
more par;es crea;ng added value for the customer. Partnership
8. Society Results may be formed with amongst others, customers, society, key
suppliers, educa;onal bodies or Non-Governmental Organisa;ons
9. Business Results
(NGO).
Glossary of terms

Benefits of using the Excellent organisa;ons plan and manage external partnerships,
suppliers and internal resources in order to support strategy and
Self-Assessment policies and the eec;ve opera;on of processes. They ensure that
they eec;vely manage their environmental and societal impact.
More about EFQM
1.2. How do I decide who could be a good Partner and supplier for
Useful links
me?

Excellent organisa;ons segment and dieren;ate partners and
suppliers, in line with the organisa;ons strategy, and adopt
appropriate policies and processes for eec;vely managing them.
They build a sustainable rela;onship with partners and suppliers
based on mutual trust, respect and openness.

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1.3. What about my current Suppliers? Where do they t?
The concept of Partnerships goes beyond the tradi;onal

customer/supplier rela;onships but normal suppliers s;ll have
their place and role to play.

Indeed, a good place to start thinking about ones Partnership
strategy is with your Suppliers. Examine your supply chain, what
does the Pareto (80/20) rule tell you? Which 20% of your suppliers
provide you with 80% of your products, parts, components or
soVware support? What might be the benets of a more integrated
rela;onship with some or all of this 20%?

There is no doubt that the trend in recent years has been to reduce
the supplier base of the organisa;on. The rela;onship becomes
closer with those that survive and, indeed, in many organisa;ons
there are examples of suppliers moving into a Partnership with one
of its customers.

1.4. What are the benets?

The purpose of entering into a Partnership is to provide the
organisa;on with some added value that it cannot achieve in any
other way for the same, or led, outlay in ;me, money and materials.
Typical benets can include one, some, or all of the following:
Reduc;on in ;me to market, First to market with new technology
and Reduc;on in costs.

The management of Finances to secure sustained success

Whatever the sources, an Excellent organisa;on will have systems in
place that help it to both fund its ambi;ons and, just as importantly,
manage its nancial resources in support of its daily opera;ons,
including funding for improvement ac;vity.

All organisa;ons need to be clear on what their most important
nancial performance parameters are, Cash Flow and Turnover for

instance. You may also be aware of other measures which are
important for your organisa;on, given the nature of your business.
Use of tools such as Risk Management, Discounted Cash Flow (DCF),
sensi;vity analysis, Internal Rate of Return (IRR), cost benet
analysis, Economic Value Add (EVA) and Ac;vity Based Cos;ng
(ABC) can all help an organisa;on to beder manage its nancial
capabili;es.

The concept of delega;on of nancial control is a common theme
shared by Excellent organisa;ons, also, the development of nancial
control is linked with the individuals performance appraisal.

There are dierent criteria to plan the future and decide whether a
par;cular investment is the correct one, for example: an es;mate of
costs, capital expenditure, customer benets and an es;mate of
deadlines. Excellent organisa;ons deliver high levels of stakeholder
condence by ensuring nancial risks are iden;ed and
appropriately managed.

One of the basic tenets of the EFQM Excellence Model is the
concept of Assessment and Review. The Model is a dynamic
framework, not a sta;c one, and it demands that no mader how
good you think you might be, there is always room for
improvement.

The management of Buildings, Equipment and Material in a
sustainable way

Apart from your people, you need to know what your key assets
are, how to segment them and what percentage of your capital
employed is given to xed assets.

We can use dierent tools to help maximise assets, some are the
following that tends to be used in a Manufacturing environment:
- Just in Time (JIT): Is a methodology for increasing produc;vity,

reducing throughput ;mes, inventory and ;me to market.
- Total Produc;ve Maintenance (TPM): It takes a preventa;ve
approach to maximising the poten;al output of your equipment by
crea;ng condi;ons for perfect produc;on (zero losses, zero defects,
zero accidents...).
- The 5S Philosophy: focuses on eec;ve work place organisa;on
and standardised work procedures. 5S simplies the work
environment, reduces waste and non-value ac;vity while improving
quality eciency and safety.

One of the biggest challenges facing organisa;ons today is to
iden;fy how to get more out of the resources it uses than perhaps it
currently achieves and, at the same ;me, recognising its
responsibility to be a good corporate ci;zen, minimise the harm it
currently causes to the environment (and manage any adverse
eects). A growing number of organisa;ons are adop;ng the ISO
14000 standard to help them gain control in this area. This standard
does not specify levels of environmental performance and is not
meant for specic business ac;vity. Instead, it oers a framework
for an overall strategic approach to your policies, plans and ac;ons.
A second framework is the Eco-Management Audit Scheme (EMAS).
The overall objec;ve of this European Commission ini;a;ve is to
promote con;nuous environmental performance improvement and
provide relevant informa;on to the public.

The management of Technology to support the delivery strategy
The organisa;ons that aspire to Excellence recognise the impact

poten;al of technology embrace new technologies and use them to
help keep ahead of the game. They involve their people and other
relevant stakeholders in the development and deployment of new
technologies to maximise the benets generated. They use
technology to support innova;on and crea;vity.

The management of Informa@on and Knowledge to support
eec@ve decision making

Excellent organisa;ons have processes in place that help them to
manage this mountain of data, informa;on and knowledge to best
eect. They know what is important, why it is important and who
needs to have access to it.
- Data are the raw facts which of themselves do not oer insight.
- Informa;on is data with context and perspec;ve.
- Knowledge is itself split into two. Explicit knowledge is that which
can be transmided through formal, systema;c processes and tacit
knowledge which is personal, context specic and not easy to
ar;culate or formalise. It is based on experience, ins;nct and
intui;on.

The concept of the right people having the right informa;on at the
right ;me, in the right place and in the right formal extends beyond
your people. It can equally apply to your Partners, your Suppliers
and your Customers. The Excellent organisa;ons use data and
informa;on in the current performance and capabili;es of
processes to iden;fy opportuni;es for, and generate, innova;on.

Returning now to the concept of managing the knowledge an
organisa;on possesses, the challenge is to manage both the tacit
and explicit types of knowledge in an integrated and coherent
manner that is linked to the overall plans for the future of the
organisa;on. How might an organisa;on best manage its explicit
knowledge and equally, how might it facilitate and manage the
transference of tacit knowledge to explicit to support the concept of
organisa;onal learning? The biggest enabler is the commitment of
your people to move from a culture where knowledge is power,
where if I tell you what I know I lose my power base, to one of if I
tell you what I know I will be valued, recognised
and rewarded.
Now it's your turn!
5. Processes, Products & Services - My first step with the EFQM Excellence Model 2017/02/08, 13:56
the EFQM
Excellence Model
EFQM Model Home >
Criterion
5. Processes, Products & Services
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources
5. Processes, Products & Process, Product and Services in Excellent organisa5ons

Services

6. Customer Results Excellent organisa/ons design, manage and improve Processes,
Products and Services to generate increasing value for customers
7. People Results
and other stakeholders.
8. Society Results
9. Business Results Excellent organisa/ons design and manage Processes to op/mise
stakeholder value. They clearly dene process ownerships and roles
Glossary of terms
and responsibili/es in developing, maintaining and improving the
Benefits of using the framework of key processes. New ideas are turned into reality
through innova/on-processes that t the nature and importance of
Self-Assessment the changes they will make.

More about EFQM Your processes are meant to develop Products and Services that
create op/mum value for customers. In order to be innova/ve, use
Useful links
market research, customer surveys and other forms of feedback to
an/cipate and iden/fy improvements in your product and service
porEolio. Involve your people, customers, partners and suppliers in
the development of innova/ve products, services and experiences.
Design them for both exis/ng and new customer groups.

Excellent organisa/ons dene their business model in terms of core
capabili/es, processes, partners and value proposi/on in order to
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/5-processes Page 1 of 7
eec/vely promote and market their product and services.

What do we mean by Processes?

A process is a sequence of ac/vi/es which adds value by producing
required outputs from a variety of inputs. So, all organisa/ons use
processes ordering material, making products, selling services...

The inputs will generally be the outputs of other processes. During
the transforma/on, value is added and resources consumed. The
output can be an object, informa/on, data or a decision. The
customer may be either external or internal to the organisa/on. Any
representa/on of a process should therefore include the input,
ac/vi/es, output and the resources required.

There are four basic ques/ons for each process step:

Who are the Suppliers?

Who are the Customers?
What are the performance indicators that describe how well
the process is performing?
Are the right control loops in place?

Good Prac/ce organisa/ons have clear statements of Vision,
Purpose and Values that allow them to set strategies and plans for
achieving their Mission. These strategies and plans set out the
organisa/ons objec/ves and targets and it is the organisa/ons key
processes that will deliver those organisa/onal goals and Cri/cal
Success Factors (CSFs). CSFs are statements that dene what the
management team must accomplish for the organisa/on to achieve
its mission. Typically, each CSF will begin with the words we must or
we need. Accepted Good Prac/ce suggests that no more than eight
CSFs should be iden/ed.

The needs of all Stakeholders help dene the strategies and plans
for the organisa/on. These strategies and plans, in turn, help to
iden/fy the key processes, the outputs of which, will sa/sfy the
Stakeholders needs.

So, once the organisa/on is clear on its overall strategy and business
goals and knows what the Cri/cal Success Factors are, then it is
possible to iden/fy the key processes that will help deliver the
required strategy.

How do I iden5fy my Key Processes?

- Brainstorming: people discuss all the business ac/vi/es and then
decide which are the most important
- Interviewing key Stakeholders: those people aected by or having
an impact on the processes
- Using the services of an external consultant
- A further op/on is to start with the generic Porter model and
then customise it to the organisa/on.

In determining your key business processes, a main ques/on to ask
yourself is: from the perspec/ve of my business strategy, which
process are key to achieving my business objec/ves? It is worth
men/oning here that when dening the performance requirements
of your key processes, as well as ensuring that the business
objec/ves are met, you take into account other considera/ons such
as:
Key Stakeholders view of performance,
The organisa/ons desired future state and
What the compe//on is doing.

Building a Process Model of the Organisa5on

The next step is to build a top level Process Model of the
organisa/on that begins to show the ow of ac/vi/es and the inter-
rela/onships. This top-level view can be used to understand and
describe the ac/vi/es of the organisa/on. Below that, processes

can be modelled in more detail. This can lead to modelling of sub-
processes to describe at the working level, the process opera/on,
and to allow both re-engineering and step-by-step improvements to
improve eciency and eec/veness.

At the top level, generally speaking, most Good Prac/ce
organisa/ons appear to segment their key processes into two
categories: Business or Customer facing processes (those processes
that deliver the added value product or service to the customer)
and Support processes & Management processes (those processes
that provide the resources required for the Business/Customer
facing processes to work in accordance with the overall strategy and
objec/ves of the organisa/on).

The analysis of your key processes then con/nue as you decompose
each key process into its component parts. Typically, organisa/ons
will break a key processes down to at least another two layers: sub-
process level and procedure or task level (where each task or
procedure represents a step in the specic sub-process level).

The Process Model and Process Mapping Tools

The top-level process model is really a container for the detailed
key processes. To extend it beyond a simple block diagram, the
descrip/ons need to represent the linkages in some way. This is
known as process-mapping.

A simple way of represen/ng a process is to use a owchart that can
link (in a logical sequence) the ac/vi/es that make up the process.
The advantages of this method are that it is simple, requires no
signicant investment in expensive so`ware tools or training, and is
rela/vely quick. A disadvantage is that on a owchart it can be
dicult to describe the resources required to carry out the
ac/vi/es. A renement is to use the technique known as
deployment owchar/ng.

The Role of Measurement in Process thinking

If your organisa/on aspires to improve, then measurement is cri/cal
in tracking progress. Measures need to be in place at each of these
levels. However, they must not be disconnected from each other
and instead they should complement each other, making up a
measurement set or system that helps the organisa/on manage
the process across the dierent func/onal silos to good eect.

Measurement is important because it is the cri/cal element that
drives process performance. We measure so that we can monitor,
control and improve the overall performance of the process and
without the right measures there is no basis on which one can
manage by process. Typically, the measures used will cover Time,
Cost and Quality dimensions and there should be a healthy balance
of Quan/ta/ve and Qualita/ve measures. Measure should address
both the eec/veness and eciency of the process.

How do you Manage and Review your Processes?

Generally speaking, Good Prac/ce organisa/ons put in place a
combina/on of the following:
The CEO or one of her/his direct reports is recognised as
the champion for the overall Process Management and
Improvement approach and all the key processes are owned
at the most senior level of the organisa/on.
Clear roles and responsibili/es for managing processes exist.
Cross func/onal teams, trained in process improvement, are
in place.
A system of recogni/on and rewards is in place and is aligned
with process performance measurement.
Appropriate measures in place.
There are a number of tools and techniques that can be used to

help you manage and review your processes. Amongst these are
standards such as ISO 9000 & ISO 14000, plus techniques such as
6. Customer Results - My first step with the EFQM Excellence Model 2017/02/08, 13:57
the EFQM
Excellence Model
EFQM Model Home >
Criterion
6. Customer Results
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources
Why are Customer Results Important?
Services
1.1. Overview
6. Customer Results

7. People Results Excellent organisa4ons design and manage processes and systems
that enable them to understand, monitor and assess their
8. Society Results
customers needs and opinions.
9. Business Results

Glossary of terms They have a structured approach to approach valuable customer-
related data as well as Customer Results.
1.2. Deni4on of a Customer and Customer Results
Self-Assessment

According to EFQM, The customer is the nal arbiter of product
More about EFQM
and service quality and the Customer Focus is a Fundamental
Useful links Concept of Excellence.

Customer Results express the level of delivery of the Mission and
the achievement of its Vision and what that means for the
customers. Good prac4ce organisa4ons invest a substan4al amount
of 4me understanding customer requirements and establishing
processes that deliver the products and services that customers
want within the agreed parameters of TIME, COST and QUALITY. A
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/6-customer-results Page 1 of 6
Customer Result is the reported outcome of those eorts and

ac4ons.

1.3. Lagging and Leading Indicators Explained

- Lag Indicator: A measure that quan4es some characteris4cs aWer
an event.
- Lead Indicator: A measure with proven ability with respect to
some output.

1.4. Beyond Customer Sa4sfac4on

EFQM used to refer to Customer Sa4sfac4on as the key lag Indicator
for Customer percep4on results. A study by the EFQM Customer
Sa4sfac4on Task Force revealed that while Good Prac4ce
organisa4ons do measure Customer Sa4sfac4on, they oWen
progress to a broader understanding that includes customer loyalty
and customer value.

The more an organisa4on learns about the impact of customer
patronage on business results, the more skilled it will become at
asking the right ques4ons and collec4ng the right sort of
informa4on from Customers and internal processes. The more an
organisa4on understands the range of success drivers that inuence
a Customer's choice of Suppliers, the more likely it is to measure
relevant areas of the rela4onship with the Customer, producing
results that reect an accurate and complete picture of the nature
of the rela4onship - past, present and future. Good Prac4ce
organisa4ons use these results as the basis for reviewing strategy,
improving processes and producing new products and services.

What are you Measuring and Repor8ng?

2.1. Percep4on Measures

The EFQM Excellence Model separates Customer Results into two
dis4nc4ve groups of measurements that also correspond to lagging

and leading indicators. Customers percep4ons of the organisa4on
(obtained, for example, from customer surveys, focus groups,
vendor ra4ngs, compliments and complaints), represent the most
important dimension of Customer Results and contain the majority
of lagging indicators.

The rst challenge facing an organisa4on is to decide on a relevant
set of percep4on measures. There are two main considera4ons. The
rst is to ensure that the process of percep4on measurement
provides informa4on on the various ac4vi4es undertaken by the
organisa4on in its pursuit of fullling customer requirements. The
second considera4on is the importance and priority aaached to the
measures by the Customer. The most sophis4cated measurement
system in the world is of liale value if it does not deliver data that is
relevant to the Stakeholder group! "Good" results in irrelevant areas
will not help an organisa4on to focus on improvement ac4ons that
will make a dierence

2.2. Performance Indicators

These measures are the internal ones used by the organisa4on in
order to monitor, understand, predict and improve the performance
of the organisa4on and to predict percep4ons of its external
Customers. Organisa4ons rely on lead indicators that will provide
data on its opera4ons by the day, week and month that help to
predict the response of Customers well before they are canvassed
for their opinions.
2.3. Range of Results (Scope and Segmenta4on)

What does a comprehensive set of Customer Results mean for your
organisa4on? The answer is directly related to the range of
Customers that you serve and the size and nature of your porholio
of products and services. An incomplete set of Customer Results can
have a drama4c impact on the value of the informa4on collected for
informing improvements, future strategy and business results.

There are three poten4al mistakes:

To assume that Customers think alike and act alike.
Organisa4ons that assume success because they receive
posi4ve feedback from a majority of Customers may be
ignoring an important message from the minority that
account for most of the revenue, or who may be inuen4al in
the future alloca4on of public funds. Segmen4ng Customers
into meaningful groups ensures that the diversity of
requirements and needs is iden4ed and eec4ve strategies
determined for each group.
To canvass opinion and collect performance data on a limited
or popular group of products and services, neglec4ng other
aspects of the organisa4ons oerings that might be high or
low maintenance, high or low revenue genera4ng, or key
dieren4ators in the market place. Asking only about the
most popular products or services could prevent you from
iden4fying some important opportuni4es.
To limit the collec4on or analysis of Customer Results to
certain geographical loca4ons or func4ons within the
organisa4on.

2.4. Seing Targets

One component of assessing an organisa4ons performance in
rela4on to Customer Results is to see the results matched against
the targets set by the organisa4on. Even then, we might not be fully
sa4sed unless we know if the targets set are relevant in terms of
an organisa4ons declared aspira4ons. Eec4ve organisa4ons apply
specic targets to specic indicators rather than seing one or two
general targets to cover whole groups of indicators.

2.5. Trends

The EFQM Excellence Model encourages organisa4ons to plan and
manage for repeated, durable, good performance, rather than be

sa4sed with "one-o" success relying more on good fortune and
serendipity. Sustainability is assessed by the degree to which the
organisa4ons Customer Results show posi4ve trends over three to
ve years and evidence of the likelihood of it con4nuing.

2.6. Use of Benchmark Data

Using Benchmark Data begins with the development of a
Benchmarking strategy that will direct your eorts as you
Benchmark at the process, organisa4onal and metrics levels. The
cri4cal success factors for successful Benchmarking are your
Benchmarking methodology and your choice of Benchmarking
partners. The successful selec4on of both should lead to the
collec4on of data that could have a very signicant eect on the
improvement of your Customer related processes, the targets you
set and how you interpret the results.

Presen8ng Results:

The most eec4ve way of presen4ng Customer Results is
graphically. They need to be communicated to all the organisa4on.
A Balanced Scorecard can be used as an important tool for
communica4ng that.

Now it's your turn!
What do you think about Customer Results?

Measure more than perception, and avoid targets
7. People Results - My first step with the EFQM Excellence Model 2017/02/08, 13:57
the EFQM
Excellence Model
EFQM Model Home >
Criterion
7. People Results
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources
Why are People Results Important?
Services
Mo#vated and sa#sed People are essen#al to success because
6. Customer Results
they are the resource that dieren#ates your organisa#on. People
7. People Results provide the inspira#on, crea#vity, vision and mo#va#on that keeps
an organisa#on alive. They provide the skills and competencies
8. Society Results
necessary to make an organisa#on work. And of course they provide
9. Business Results
the labour that produces the goods and services that an
Glossary of terms organisa#on supplies. They are a major and, many would say, the
most important resource that an organisa#on has.
People who have no job sa#sfac#on (mo#va#on, enthusiasm,
Self-Assessment
commitment) are not produc#ve as they could be. They will not give
your customers the best service, they wont bother if they produce
More about EFQM
errors, they wont be innova#ve and wont op#mise use of
Useful links resources.

In order for People to be sa#sed with their job and mo#vated to
do their best, they need to be convinced that the organisa#on acts
in their best interest, provides them with the facili#es, tools and
techniques to do their job properly and is concerned for them both
in the short-term and through longer term career development.
People are also concerned with how their organisa#on is perceived
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/7-people-results Page 1 of 6
by the outside world. They realize that, on the long term, this
outside percep#on indicates the probability of secured and
rewarding employment.

You need to know how people feel, behave and perform in your
organisa#on. This gives you the basis to increase produc#vity, solve
issues, celebrate achievements. Knowing your People Results, in
order to be able to act upon them, is an essen#al part of the
delivery of your strategy.

Star#ng with the Enablers

People results are inuenced by how you manage your people, how
you implement your strategy and how you manage your processes.
All these factors, which are covered by the Enabler Criteria within
the EFQM Excellence Model, will strongly inuence how your
people feel about working in your organisa#on. People Results are a
very important tool in understanding where and how to improve
your people management.

How do you Measure and Report People Results?

2.1. Choosing the right measures

There are many dierent measures that you can use to gain an
insight into what your People think, but rst, you have to consider
what are the fundamental drivers that mo#vate and sa#sfy People
(Maslows Hierarchy of Needs).

People are mo#vated to sa#sfy the lower level needs before they
can move to the higher levels. Within each need however, everyone
has dierent specic wants. So, in order to understand your People
and the focus of their mo#va#on, you need to understand how they
are ac#ng and how they perceive themselves within the need
hierarchy. You also need to understand the specics of what they
want. Measures that enable you to do this are the most useful and
also help you iden#fy how to improve your people results.

Within the EFQM Excellence Model, two categories of measures are
iden#ed:

Percep#on Measures: are of the Peoples percep#on of the
organisa#on.
Performance Measures: are the internal ones used by the
organisa#on to monitor, understand, predict and improve the
performance of the organisa#ons People and to predict their
percep#ons.

2.2. Percep#on Measures

Percep#on Measures are how People feel about themselves, their
job and about the organisa#on. These are subjec#ve measures but
should be treated seriously as they provide you with a very useful
indicator of the health of the rela#onship between the organisa#on
and its People. As these measures focus on the eect of what has
already happened, they are some#mes called Lagging Indicators.

Peoples percep#ons of the organisa#on can be measured through
their assessment of two main factors: their mo#va#on and their
sa#sfac#on.

It is important to understand that, although mo#va#on and
sa#sfac#on are inter-related, they do in fact have very dierent
consequences. A person who is happy with the terms and
condi#ons of their job may be sa#sed but not necessarily
mo#vated. Someone who agrees with the organisa#ons strategy
and relates to its leaders may be highly mo#vated to succeed but
may not be sa#sed with the pay.

To measure your Peoples percep#on, you need to look at the topics
that are important to your organisa#on, but it is insucient to know
what people think about an issue without understanding their view
of the importance of the issue.

2.3. Performance Measures

Performance Measures are measures of independent internal
indicators showing how well People are performing. They can also
be used to help predict future performance and percep#ons and are
some#mes called Leading Indicators. Performance indicators
iden#ed in the EFQM Excellence Model are categorised into 5
sec#ons:

Involvement and engagement
Target se_ng, competency and performance management
Leadership performance
Training and career development
Internal communica#ons
2.4. The Path to Excellent Results

The Excellence of the Result is determined by the degree to which
an organisa#on can demonstrate trends, targets and comparisons
(numerically) with clear references to causes and the presenta#on
of a set of results that correspond to the range of ac#vi#es and the
size and nature of the organisa#ons.

- Se_ng Targets: The targets need to be relevant in terms of the
organisa#ons declared aspira#on and should be demonstrably
stretching in a direc#on that supports your business strategy and
not easily achieved without eort.

- Trends: the EFQM Excellence Model encourages organisa#ons to
plan and manage for repeated, durable good performance (at least
3 years).

- Benchmark data: you can Benchmark processes, organisa#ons
and/or metrics (measurements).

2.5. Ge_ng started

The most common technique is the sta survey, but there are
others that you can use too. You will nd numerous sta survey
formats in books, Internet, HR department... Whatever the tools
you choose, you will then need to follow a very similar process and
survey structure (you can improve it). Once you have established a
structure, try to keep it so that you can do year on year
comparisons. Try to repeat your data gathering at least annually.

The results need to be segmented to understand the needs and
expecta#ons of specic groups within your organisa#on.

Communica;ng and Ac;ng on your People Results?

Once you have done all explained before, it is important to ensure
that you tell People what the Results are, because people dont like
being asked to give opinions without receiving feedback. Besides,
communica#ng the results gives you a golden opportunity to get
them involved. There are myriad of dierent media for
communica#ng the results to your people, so choose the best to
your organisa#on.

In order to be credible to your people, they need to see the
complete picture and be convinced that the organisa#on is being
open and honest with them.
Now it's your turn!
What do you think about People Results?

8. Society Results - My first step with the EFQM Excellence Model 2017/02/08, 13:57
the EFQM
Excellence Model
EFQM Model Home >
Criterion
8. Society Results
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources
Why are Society Results Important?
Services
1.1. Overview
6. Customer Results

7. People Results Nowadays, whilst nancial performance con:nues to be a vital
factor, other parameters such as a focus on Customer Value,
8. Society Results
Employee Sa:sfac:on, Strategy Deployment, Supplier Performance
9. Business Results
and Partnership and Alliance Success Rates are also important Key
Glossary of terms Performance Indicators. Some organisa:ons have gone much
further than this, they have extended their deni:on of Excellence
EFQM Excellence Model to an examina:on of the extent to which they conduct their
business ethically and co-exist in harmony with dierent groups in
Self-Assessment
Society.

More about EFQM
Customers and poten:al customers can, and do, exercise choice.
Useful links Price is not the only determinant - an organisa:ons stance on social
and environmental issues can carry signicant weight in the mind of
the consumer and can have a drama:c impact on the boLom line.
Legal Responsibili:es are increasing too, so the organisa:ons need
to adapt their performance in order to obey the law.

Environmental policies bring real benet to shareholder value. Your
organisa:on will benet from recycling, suppor:ng the local
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/8-society-results Page 1 of 7
community, involve your people in local ac:vi:es, donate de-

commissioned assets, create employment in the area, etc.

There are also situa:ons where social responsibility ac:ons have its
origins in the need for an organisa:on to stop a crisis arising, limit
the damage already caused, or protect the organisa:ons
reputa:on. No organisa:on is immune from poten:al conict and
problems with their societal responsibili:es.

Excellence organisa:ons design and manage processes and systems
that enable them to understand, monitor and assess their
engagement with Society Stakeholders. Collec:ng and analysing
Society Results is a crucial part of the way they operate.

1.2. Deni:on of Society

By the term "Society", we are referring to any individual or group
that is impacted on by your existence, apart from when they are in
the role of customer, supplier, partner or sta member. This means
that when a customer or a member of sta is in the building, the
impact of your rela:onship with them is measured under Customer
Results or People Results or Key Performance Results (Criterion 9).
However, when they are at home, siYng in their favourite chair
watching the television, these people become members of Society,
living within communi:es that may, or may not, be impacted on by
your organisa:on. Society is also the environmental world within
which the organisa:on inhabits. In this sense, the deni:on
includes the ora and fauna surrounding an organisa:ons place of
work. There is an Internal Society too, which is inside the
organisa:on, between dierent employees.

1.3. Star:ng with the Enablers Policy and Strategy

Prac:cal experience has taught us that when organisa:ons start to
use the EFQM Model, they nd Society Results very challenging if
they have not developed a strategy for managing their rela:onships
with the dierent groups in Society. To develop that strategy, you

need to follow a process following the steps suggested below:

1. Iden:fy your society Stakeholders and determine the desired
rela:onships and policies
2. Create approaches / processes and measures to deliver the
desired rela:onships
3. Ensure that society stakeholders management has full support
of leaders
4. Ensure that sta are appraised and recognised for suppor:ng the
strategy
5. Measure your success from the perspec:ve of society, customers
and people
6. Consider the results in rela:on to your strategy and business plan
/ budget
7. Learn lesson, review and revise your society strategy,
approaches and targets

Making your approach to Society and the environment an explicit
part of your Strategy conveys a powerful message to all of your
Stakeholders. But one signicant dierence between Good Prac:ce
organisa:ons and other is the degree to which Society strategies are
made tangible and relevant to everyone involved.

Producing Tangible Results

2.1. A Culture of Non-Measurement

Experience shows that organisa:ons undertaking Self-Assessment
ohen nd themselves with low scores in the area of Criterion 8
because even though they perceive themselves to be
environmentally friendly and society aware, they have never
quan:ed their eorts and have only a general sense and a set of
assump:ons about the impact they are having. Some organisa:ons
take the aYtude that measurement is not important, but Good
Prac:ce organisa:ons apply the same rigour to their rela:onships
with Society Stakeholders that they apply to other Stakeholder

groups.

2.2. Percep:on Measures

The EFQM Excellence Model separates Society Results into two
dis:nc:ve groups of measurements: Societys Percep:on of the
organisa:on (obtained, for example, from surveys, reports, public
mee:ngs, public representa:ves,
governmental authori:es) and Performance Indicators, such as
quan:ty, frequency, volume or weight, measured by the
organisa:on.
There are two main ways of collec:ng data in rela:on to Societys

Percep:on :

- Direct canvassing, usually via surveys commissioned (survey
measures are ohen called laggin indicators because they happen
aher event
- Indirect collec:on, bene:ng from data collected by other par:es.

2.3. Performance Indicators

These measures are the internal ones used by the organisa:on in
order to monitor, understand, predict and improve the performance
of the organisa:on and to predict percep:ons of its external
customers. Performance measures are usually linked with volume,
frequency, :me and weight. Organisa:ons ohen nd that it takes
liLle eort to install a measurement system in rela:on to their
ac:vi:es. Percep:on Measures and Performance Indicators quan:fy
eorts and help organisa:ons to understand the degree to which
policies are being deployed and eorts are jus:ed. Bringing a
measurement culture to your Societal and Environmental ac:vi:es
will enable you to focus your improvement eorts and determine
accurately if you are part of the problem or the solu:on!

2.4. Achieving Excellent Society Results

The Excellence of the Result is determined by the degree to which
an organisa:on can demonstrate trends, targets and comparisons
(numerically) with clear references to causes and the presenta:on
of a set of results that correspond to the range of ac:vi:es and the
size and nature of the organisa:ons.

- SeYng targets: An organisa:ons performance in rela:on to
Society Results cannot be assessed fully unless the results are
matched against the targets (relevant in terms of the organisa:ons
declared aspira:ons) set by the organisa:on.

- Trends: Sustainability is assessed by the degree to which the
organisa:ons Society Results show posi:ve trends over a period of
years.

- Use of Benchmark data: Regardless of whether you Benchmark at
the process, organisa:onal or metrics level, using Benchmark data
should begin with the development of a Benchmarking strategy that
will direct your eorts.
- Range of Results: An incomplete set of Society Results can have a

drama:c impact on the value of the informa:on collected for
informing improvements, future strategy and business results. The
Results need to be segmented to understand the experience, needs
and expecta:ons of specic stakeholders within Society.

How are you communica=ng the Results?

Managing your communica:on processes as well as your content
will enable you to use your Society Results as a way of building even
beLer rela:onships with your Stakeholders and reinforcing the
concepts of win-win.
9. Business Results - My first step with the EFQM Excellence Model 2017/02/08, 13:58
the EFQM
Excellence Model
EFQM Model Home >
Criterion
9. Business Results
1. Leadership
2. Strategy
3. People
4. Partnerships &
Resources Begin with the End in Mind

Services 1.1. Overview

6. Customer Results
Everything an Organisa/on does produces an outcome or result
7. People Results This is an important message for all organisa6ons. In addi6on to the
8. Society Results more tradi6onal types of results associated with volume, cost and
quality of products or services, all organisa6ons generate results
9. Business Results
from the ac6on of transac6ng informa6on and knowledge between
Glossary of terms two or more par6es everyday (e.g. sta to sta, sta to customers
etc).
In Good Prac6ce organisa6ons, all ac6ons of every employee are
Self-Assessment
designed to add value to the business and therefore to inuence
performance and the specic results the organisa6on achieves.
More about EFQM

Useful links 1.2. The Signicance of Results

The signicance of your results extends to your partners and
suppliers who will want to trade with you for as long as there is a
win-win, no one wants to be the creditor of a bankrupt. These
Stakeholders will determine if you are achieving good results by
looking at your solvency, your ability to seNle invoices on 6me and
the degree to which you respect their brand integrity when using
https://sites.google.com/site/myfirststepwithefqmmodel2010/home/9-key-results Page 1 of 7
their products or services to enhance your own. Customers and

beneciaries have a similar interest in knowing that you are a
reliable organisa6on to do business with, that you will honour
commitments made and con6nue to meet present and future
needs. Employees rely on sound nancial results as some insurance
for future employment. They will look to see if the company
pension scheme is secure, employee share schemes benecial and
remunera6on paid on 6me and at an appropriate rate in the market
place.

1.3. Deni6on of a Business Performance Result

EFQM does not want you to expend 6me and energy collec6ng data
to produce results that do not contribute a great deal to
understanding your performance or your Stakeholders' sa6sfac6on.
Instead, we urge you to iden6fy the most signicant areas in terms
of the impact on the business strategy, plans and customer
experience. It is useful the Principle of Pareto, which typical paNern
will show that:
80% of output is divided from 20% of inputs
80% of consequences ow from 20% of causes
80% of results comes from 20% of eort
The 80/20 Principle challenges us to nd the 20% of measurement

points that provide 80% of the most valuable informa6on about our
processes, our products and our services. We can start to iden6fy
what our measures should be and what we should be delivering as
our Key Performance Results by applying Pareto Analysis.

Business Performance Outcomes: There is no doubt that the
nancial performance of an organisa6on will be among its most
important Key Performance Outcomes. Within Kaplan and
Nortons Balanced Scorecard four perspec6ves, the Financial
Perspec6ve with its emphasis on measures such as Revenue
Growth, Asset U6lisa6on, Growth and Opera6ng Costs. However,
when EFQM refers to Key Performance Outcomes, do not be fooled
into thinking that we are only talking about nancial results also
Non Financial Outcomes such as Volume of Products Produced,

Market Share and Frequency of Services Delivered.

Business Performance Indicators: These measures are the
opera6onal ones used in order to monitor, understand, predict and
improve the organisa6ons likely key performance outcomes. Within
Kaplan and Nortons Balanced Scorecard four perspec6ves, the
Internal Perspec6ve and Learning Perspec6ve come closest to the
idea of KPIs.

1.4. Dierences between Commercial (large and small), Public
Sector and Not-for-Prot Organisa6ons

It is a myth that there are vast dierences between the method of
measurement, the choice of measures and the quality and
excellence of the results obtained between commercial companies
and the public sector and not-for-prot organisa6ons.

1.5. Achieving Excellent Key Performance Results

We have made several references to achieving good results and
the need to understand good from your Stakeholders
perspec6ves. The rigorous scoring framework that accompanies the
EFQM Excellence Model (RADAR scoring matrix - Results,
Approach, Deployment, Assessment and Renement) oers a very
clear picture of its expecta6ons in rela6on to Results. The
Excellence of the Result is determined by the degree to which an
organisa6on can demonstrate trends, targets and comparisons
(numerically) with clear references to causes. The results must also
correspond to the range of ac6vi6es, size and nature of the
organisa6on.

- Trends: The EFQM Excellence Model encourages organisa6ons to
plan and manage for repeated, durable good performance rather
than be sa6sed with one-o success. Sustainability is assessed
by the degree to which the organisa6ons Key Performance Results
show posi6ve trends over a period of 3 years.

- Sekng Targets: An organisa6ons performance in rela6on to Key
Performance Results cannot be assessed fully unless the results are
matched against the targets set by the organisa6on. Even then, we
might not be fully sa6sed unless we know if the targets set are
relevant in terms of the organisa6ons declared aspira6ons.

- Use of Benchmark Data: The Cri6cal Success Factors for
Benchmarking are the methodology you use and your choice of
Benchmarking partners.

- Range of Results (Scope and Segmenta6on): Although you may be
measuring a range of ac6vi6es and processes, both in terms of
Outcomes and Indicators, there are a number of interes6ng
ques6ons: How selec6ve are you in what you are choosing to
measure and what you are choosing to report? Does your set of
results align with your strategy, your business plan and your core
and key processes? Are you producing a per6nent, comprehensive
set of Results for your organisa6on?

1.6. Organisa6ons without a Culture of Measurement or Results-
Orienta6on

In organisa6ons that dont measure or set targets, results are s6ll
produced but the degree to which they meet Stakeholders
requirements will depend more on good fortune than planning.
When organisa6ons start to use the EFQM Excellence Model, a
substan6al propor6on of them score low in the Results criteria, not
because their work does not produce results, but because they have
never managed their ac6vi6es with the end in mind.

Building a Culture of Measurement and Results

Measurement is the main ingredient of Performance Management,
and the Excellence of your Key Performance Results depends upon
the complete deployment in your organisa6on of a Performance

Management culture. This culture will be supported by processes,
systems and, above all, the passion of every single person to make a
dierence through the achievement of pre-determined objec6ves
and targets. A Performance Management System or Process (to use
Kaplan and Nortons preferred term) is designed to help you to
determine and deliver the type of results that you want, and keep
your Stakeholders sa6sed and loyal.

- Data Collec6ng, Repor6ng and Communica6ng: The core
components of data collec6on are linked with clearly dened
processes for collec6on, with more and more organisa6ons using
sooware and ooen Intranet collec6on and display solu6ons. The
results need to be segmented to understand the performance levels
and strategic outcomes achieved within specic areas of the
organisa6on. A good set of results can have an immediate impact
on Stakeholders condence and it is important to convey the right
message to the right people.

- Employee Involvement and Empowerment: Performance
Management Systems cannot work if the sta do not play a full role.

- Role of Leaders and Managers: Leaders and managers have
important roles to play in developing, promo6ng and deploying the
Performance Management System. They have to be results
oriented.

- Training for Measurement, Results and Improvement: Good
Prac6ce organisa6ons use intensive training to enable employees to
understand their measurement frameworks.

- The Improvement Process: Underlying all aspects of this Booklet is
the belief that whatever our level of performance today, we want to
do even beNer tomorrow. However, the secret to eec6ve
improvement is knowing what to improve and how to improve it.
Results will provide us with valuable data but the full story cannot
emerge un6l we rst determine our results with reference to our

plans and our priori6es, execute, measure the results or outputs of
our eorts and take remedial ac6on.
Now it's your turn!
What do you think about Key Results?


What's more, download the Key Results Assessment

Template (attached below) and...perform your first
assessment!
FEEL FREE to contribute with your KNOWLEDGE! Any

new idea will be WELCOME!
www.efqm.org

AssessingKeyResu Iosune Agirre, 7 May 2010,
v.116:51
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My first step with the EFQM Excellence Model 2017/02/08, 16:36

My first step with Search this site

This free resource has been created to be your

Why use our Model?

How to use this website?

It is easy to use. You have links to each criterion, you just

There is also a Glossary of Terms to help you better

Moreover, you have the great opportunity to assess your

How to share your knowledge?

An additional aim of this site is to share knowledge. We want

Our Assessment templates have been created to enable you

excellent performance, you need to know where you are now,

For the past twenty years we have shared what works

Through our network of over 500 ambitious members

The EFQM Excellence Model represented in the diagram above is a non-

using feedback from "Results".

More information: www.efqm.org

My first step with Search this site

1.2. Who are the Leaders?

1.3. What do Leaders do?

overnight, people go through a cycle of change.

Now it's your turn!

What do you think about Leadeship?

You can add text, a new page, comments or attachments!

My first step with Search this site

both stakeholders and the external environment, also

best in class is a powerful input to any debate on your organisa*ons

Good Prac*ce organisa*ons establish frameworks for managing

individuals and teams perform. It is important to align people in

Now it's your turn!

What do you think about Strategy?

You can add text, a new page, comments or attachments!

What's more, download the Strategy Assessment

FEEL FREE to contribute with your KNOWLEDGE! Any

My first step with Search this site

- Have part-4me or piece-work contracts, short-term contracts

changing demands of customers, technology, legisla4on, not to

culture, it is much more dicult to teach them to be friendly to

the workplace using colleagues as mentors, Self-learning using

Now it's your turn!

What do you think about People?

You can add text, a new page, comments or attachments!

What's more, download the People Assessment Template

My first step with Search this site

1.3. What about my current Suppliers? Where do they t?

The concept of Partnerships goes beyond the tradi;onal

nancial performance parameters are, Cash Flow and Turnover for

- Just in Time (JIT): Is a methodology for increasing produc;vity,

The organisa;ons that aspire to Excellence recognise the impact

Now it's your turn!

My first step with Search this site

5. Processes, Products & Process, Product and Services in Excellent organisa5ons

eec/vely promote and market their product and services.

Who are the Suppliers?

describe the ac/vi/es of the organisa/on. Below that, processes

There are a number of tools and techniques that can be used to

My first step with Search this site

Customer Result is the reported outcome of those eorts and

dis4nc4ve groups of measurements that also correspond to lagging

2.3. Range of Results (Scope and Segmenta4on)

informing improvements, future strategy and business results.

manage for repeated, durable, good performance, rather than be

Now it's your turn!

Good Pracce organisaons establish frameworks for managing