The Slovenian Business Excellence Prize is based on the nine criteria of the EFQM Excellence Model.
The EFQM Excellence Model 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. ‘Results’ are caused by ‘Enablers’ and ‘Enablers’ are improved using feedback from ‘Results’.
The Model, which recognises there are many approaches to achieving sustainable excellence in all aspects of performance, is based on the premise that:
Excellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Strategy that is delivered through People, Partnerships and Resources, and Processes.
The EFQM Model is presented in diagrammatic form above.
The arrows emphasise the dynamic nature of the Model. They show innovation and learning helping to improve enablers that in turn lead to improved results.
Model contents and structure
The Model’s 9 boxes, shown above, represent the criteria against which to assess an organisation’s progress towards excellence.
Each of the nine criteria has a definition, which explains the high level meaning of that criterion.
To develop the high level meaning further each criterion is supported by a number of criterion parts. Criterion parts pose a number of questions that should be considered in the course of an assessment.
Finally below each criterion part are guidance points. Use of these guidance points is not mandatory nor are the lists exhaustive but are intended to further exemplify the meaning of the criterion part.
Brief Overview of Model Criteria
- LEADERSHIP
Definition
Excellent Leaders develop and facilitate the achievement of the mission and vision. They develop organisational values and systems required for sustainable success and implement these via their actions and behaviours. During periods of change they retain a constancy of purpose. Where required, such leaders are able to change the direction of the organisation and inspire others to follow.
1a Leaders develop the mission, vision, values and ethics and are role models of a culture of Excellence
1b Leaders are personally involved in ensuring the organisation’s management system is developed, implemented and continuously improved
1c Leaders interact with customers, partners and representatives of society
1d Leaders reinforce a culture of Excellence with the organisation’s people
1e Leaders identify and champion organisational change
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POLICY AND STRATEGY
Definition
Excellent Organisations implement their mission and vision by developing a stakeholder focused strategy that takes account of the market and sector in which it operates. Policies, plans, objectives, and processes are developed and deployed to deliver the strategy.
2a Policy and Strategy are based on the present and future needs and expectations of stakeholders
2b Policy and Strategy are based on information from performance measurement, research, learning and external related activities
2c Policy and Strategy are developed, reviewed and updated
2d Policy and Strategy are communicated and deployed through a framework of key processes
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PEOPLE
Definition
Excellent organisations manage, develop and release the full potential of their people at an individual, team-based and organisational level. They promote fairness and equality and involve and empower their people. They care for, communicate, reward and recognise, in a way that motivates staff and builds commitment to using their skills and knowledge for the benefit of the organisation.
3a People resources are planned, managed and improved
3b People’s knowledge and competencies are identified, developed and sustained
3c People are involved and empowered
3d People and the organisation have a dialogue
3e People are rewarded, recognised and cared for
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PARTNERSHIPS AND RESOURCES
Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support policy and strategy and the effective operation of processes. During planning and whilst managing partnerships and resources they balance the current and future needs of the organisation, the community and the environment.
4a External partnerships are managed
4b Finances are managed
4c Buildings, equipment and materials are managed
4d Technology is managed
4e Information and knowledge are managed
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PROCESSES
Definition
Excellent organisations design, manage and improve processes in order to fully satisfy, and generate increasing value for, customers and other stakeholders.
5a Processes are systematically designed and managed
5b Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stakeholders
5c Products and Services are designed and developed based on customer needs and expectations
5d Products and Services are produced, delivered and serviced
5e Customer relationships are managed and enhanced
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CUSTOMER RESULTS
Excellent organisations comprehensively measure and achieve outstanding results with respect to their customers
6a Perception Measures
These measures are of the customers’ perceptions of the organisation (obtained, for example, from customer surveys, focus groups, vendor ratings, compliments and complaints).
6b Performance Indicators
These measures are the internal ones used by the organisation in order to monitor, understand, predict and improve the performance of the organisation and to predict perceptions of its external customers.
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PEOPLE RESULTS
Excellent organisations comprehensively measure and achieve outstanding results with respect to their people
7a Perception Measures
These measures are of the people’s perception of the organisation (obtained, for example, from surveys, focus groups, interviews, structured appraisals).
These measures are the internal ones used by the organisation in order to monitor, understand, predict and improve the performance of the organisation’s people and to predict their perceptions.
7b Performance Indicators
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SOCIETY RESULTS
Excellent organisations comprehensively measure and achieve outstanding results with respect to society
8a Perception Measures
These measures are of the society’s perception of the organisation (obtained, for example, from surveys, reports, press articles, public meetings, public representatives, governmental authorities). Some of the measures contained in the guidance for Perception Measures may be applicable to Performance Indicators and vice versa
8b Performance Indicators
These measures are the internal ones used by the organisation in order to monitor, understand, predict and improve the performance of the organisation and to predict perceptions of society.
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KEY PERFORMANCE RESULTS
Excellent organisations comprehensively measure and achieve outstanding results with respect to the key elements of their policy and strategy.
9a Key Performance Outcomes
Depending on the purpose and objectives of the organisation some of the measures contained in the guidance for Key Performance Outcomes may be applicable to Key Performance Indicators and vice versa.
9b Key Performance Indicators
These measures are the operational ones used in order to monitor and understand the processes and predict and improve the organisation’s likely key performance outcomes.
RADAR
The RADAR logic
At the heart of the Model lies the logic known as RADAR.
RADAR consists of four elements:
Results,
Approach,
Deployment,
Assessment and
Review.
This logic states that an organisation needs to:
- Determine the Results it is aiming for as part of its policy and strategy making process. These results cover the performance of the organisation, both financially and operationally, and the perceptions of its stakeholders.
- Plan and develop an integrated set of sound Approaches to deliver the required results both now and in the future.
- Deploy the approaches in a systematic way to ensure full implementation.
- Assess and Review the approaches followed based on monitoring and analysis of the results achieved and ongoing learning activities. Finally, identify, prioritise, plan and implement improvements where needed.
When using the Model within an organisation the Approach, Deployment, Assessment and Review elements of the RADAR logic should be addressed for each Enabler criterion part and the Results element should be addressed for each Results criterion part.
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