EFQM Excellence Model

The European Foundation for Quality Management (EFQM) launched the EFQM Excellence Model in 1992 to assist organizations of any size or sector in developing and implementing strategies to increase European organizations' competitiveness. The most recent model has evolved from a simple assessment tool to one that provides a "framework and methodology to assist with the changes, transformation, and disruption that individuals and organizations face on a daily basis." The 2020 EFQM Model is based on three questions: Why? What and how? What is the purpose of this organization? What function does it serve? Why this specific Strategy?  How does it intend to carry out its Purpose and Strategy?  What has it actually accomplished so far? What does it hope to accomplish tomorrow? 

This drives the three key sections of the new framework: Direction, Execution and Results.

• Direction:

• Purpose, Vision and Strategy: A great organization is defined by its inspiring Purpose, aspirational Vision, and effective Strategy.
• Organisational Culture and Leadership: Organizational Culture is the specific set of values and norms shared by individuals and groups within an organization that influence how they interact with one another and with key stakeholders outside the organization over time.

Organizational leadership refers to the organization as a whole, rather than any individual or group that provides top-down direction. It is about the organization acting as a leader within its ecosystem, recognized by others as a role model.

• Execution: 

• Engaging Stakeholders: After determining which Stakeholders are most important to the organization, i.e. its Key Stakeholders, and regardless of the specific groups identified, it is highly likely that applying the following principles when engaging with Key Stakeholders will be similar.
• Creating Sustainable Value: An exceptional organization understands that Creating Sustainable Value is critical to its long-term success and financial strength.
• Driving Performance & Transformation: To become and remain successful, an organization must be able to meet the following two important requirements at the same time, now and in the future.

• Results 

• Stakeholder Perceptions: This criterion focuses on outcomes based on Key Stakeholder feedback about their personal experiences dealing with the organization - their perceptions.
• Strategic & Operational Performance: This criterion focuses on outcomes related to the organization's performance in terms of:
• It’s ability to fulfill its Purpose, deliver the Strategy, and Create Sustainable Value.
• It is preparedness for the future.

Is the EFQM Excellence Model Effective?

We can safely conclude that the 2020 EFQM Excellence Model is extremely beneficial. 'The logic of the new EFQM model (Why-Direction, How-Execution, What-Results) is so fundamental and obvious, that (it) addresses not only how to be excellent but - what is even more important - how to be radically different by understanding and reacting to all the relevant megatrends and other impulses in the environment,' writes Nenad Savic in his thoughtful article on the subject. However, it should not be regarded as a one-stop shop for business development. To support the implementation of the EFQM Excellence Model, you will undoubtedly require a management system built around Continuous Improvement. If you would like to be more informed about this topic, check our detailed EFQM training courses