Excellence Model for European and Global Businesses
Brussels (BE), November 2009 - Announced at the annual EFQM Forum business leaders event, the Foundation's Excellence Model has recently been reviewed and revised to align the framework with current business needs and trends. High-performing organisations have management frameworks that define what they do and explain why they do it.
The EFQM Excellence Model is the most widely used organisational framework in Europe and extends to global markets, reaching more than 30,000 organisations worldwide.
Used as a tool for assessment, it delivers a picture of how well the organisation compares to similar or very different kinds of organisation. Used as a management model, it can be used to define aspirations for the organisation's capability and performance.
In the revised Model, the emerging trends and topics that have greater emphasis are "Creativity and Innovation", "Sustainability", "Corporate Governance", "Organisational Agility", "Risk Management", "Promoting products & services", and "Supplier Management".
Sustainability is now firmly on the agenda of management boards around the world. EFQM supports organisations in defining what sustainability means, providing approaches for its implementation and ensuring consistency between apparently conflicting responsibilities toward shareholders, employees, and society.
Starting from the strengths of the existing EFQM Model, namely, the eight fundamental concepts, its widely recognised nine-box structure, and the acclaimed RADAR scoring matrix, the review team was given a critical assignment. Their task was to make updates that would incorporate these trends, while increasing the Model's action orientation and accessibility to all managers from a broad selection of organisations, both public and private. Wording has been simplified and made more relevant to the emerging challenges of today.
Beginning with the "Fundamental Concepts", which are a core set of principles adopted by EFQM member organisations, levels of performance have been defined against which organisations can chart their aspirations.
The fundamental concepts, all of which have been revised, now read: "Achieving Balanced Results", "Adding Value for Customers", "Leading with Vision", "Inspiration & Integrity", "Managing by Processes", "Succeeding through People", "Nurturing Creativity & Innovation", "Building Partnerships", and "Taking Responsibility for a Sustainable Future".
More than just a change of wording, these concepts are now consistently applied and integrated at a deeper level throughout the Model. Reference to these principles occurs in the criteria and criterion parts. Furthermore, it is explicitly considered in the "Red Threads" that link the nine boxes together.
The EFQM Excellence Model is a non-prescriptive framework for understanding the connections between what an organisation does and the results it is capable of achieving. It is used to structure a logical and systematic review of any organisation, permitting comparisons to be made with high-performing organisations. It is also used to define the capabilities and resources that are necessary in order to deliver the organisation's strategic objectives.
RADAR is a rigorous management methodology that defines the learning cycle inherent in an effective change-management process. It also includes a scoring framework for understanding how well the organisation's priorities and processes support its ambitions. The system is also used to benchmark organisational capability and performance.
