EUROPEAN FOUNDATION

FOR QUALITY MANAGEMENT (EFQM) Model

Submitted to:

Dr. Subramaniam

SIBM B

By:

Aakash Parajuli 17020841001

Roshan Aryal 17020841028

September 17, 2017

EFQM Model

It is the highest award provided to the organization who have shown excellence management,
production process and overall development of the organization. It is only awarded in Europe. It
can also be used as a tool for assessing how effective an organization is developing and
delivering stakeholder focused strategy. It offers a view of the organization, highlighting its
strengths, weakness and opportunity to improve as a result it can be used as benchmarking tool
to compare an organization to its competitors and other leading organizations. The organization
can be used as a role model for the functioning of other organization in terms of excellence.

A point is to be noted that not every organization is eligible for this award. They have to show
that they are committed to excellence and should be recognized for the excellence. And the
company has to be I Europe.

Fundamental Concepts

This model is built around 8 fundamental concepts which helps the organization to perform
excellence. It outlines the foundation for achieving the sustainable excellence in any
organization. The foundation can be used as a basis to describe attributes of excellent
organization. These 8 concepts have been identified through a rigorous process of interviewing
various CEOs of Top companies and many management scholars over the span of 25 years. Each
of these 8 concepts have their own Importance and contribute significantly to the organization,
but maximum benefit can be only achieved by embodying all 8 concepts. The fundamental
concepts are:

1. Adding Value for Customers:

Excellent organizations consistently add value for customers by understanding,
anticipating and fulfilling what the customer needs, what their expectations are and what
opportunities they can capitalize on.

2. Creating a Sustainable Future:

Excellent organizations have a positive impact on the world around them by enhancing
their performance whilst simultaneously advancing the economic, environmental and
social conditions within the communities they touch. Only developing their own
 organization isnt enough if the surrounding users of the product/service are not ready for
the product. So, they should focus on developing the society as a whole.

3. Developing Organizational Capability:

Excellent organizations enhance their capabilities by effectively managing change within
the organization i.e. the culture and workforce, for eg. By providing various training
facilities to the employees and beyond the organizational boundaries by initiating various
SCR activities.

4. Harnessing Creativity and Innovation:

Excellent organizations generate increased value and levels of performance through
continual improvement and systematic innovation by harnessing the creativity of their
stakeholders.

5. Leading with Vision, Inspiration and Integrity:

Only having a proper strategy or process to show excellence isnt enough, there should be
a driving force which leads the organization from the front. So, Excellent organizations
have leaders who shape the future and make it happen, acting as role models for its
values and ethics.

6. Managing with Agility:

As people say Change is the only constant, so the work environment is always
dynamic. Excellent organizations should be widely recognized for their ability to identify
and respond effectively and efficiently to opportunities and threats.

7. Succeeding Through the Talent of People:

Excellent organizations value their people and create a culture of empowerment for the
achievement of both organizational and personal goals. For eg. Like Toyota, who focused
more on the employees by providing them freedom of experimenting and coming with
new ideas which enhanced their production process.

8. Sustaining Outstanding Results:

Excellent organizations achieve sustained outstanding results that meet both the short and
long term needs of all their stakeholders, within the context of their operating
environment.
EFQM Model Criteria:
The Efqm Excellence model is based in nine criteria. Five of them are Called Enablers and the 4 of them
are called Results. The enabler criteria tell what an Organization does and how it does it. The Results
criteria cover what an Organization achieves.

Source: EFQM

Enablers:

Enablers are the thing that organization needs to do to develop and implement its strategy.

Leaders:

Excellent Organizations have leaders who shape the future and make it happen, acting as role
models for its values and ethics and inspiring trust at all times. They are flexible, enabling the
Organization to anticipate and reach in a timely manner to ensure the on-going success of the
Organization.

Strategy:

Excellent Organizations implement their Mission and Vision by developing a stakeholder focused
strategy. Policies, plans, objectives and processes are developed and deployed to deliver the
strategy

People:
Excellent Organizations value their people and create a culture that allows the mutually beneficial
achievement of Organizational and personal goals. They develop the capabilities of their people
and promote fairness and equality. They care for, communicate, reward and recognize, in a way
that motivates people, builds commitment and enables them to use their skills and knowledge for
the benefit of the Organization.

Partnership: Excellent organizations plan and manage external partnerships, suppliers and internal
resources in order to support their strategy, policies and the effective operation of processes. They
ensure that they effectively manage their environmental and societal impact.

Process, Products, and Services: Excellent Organizations design, manage and improve processes, products
and services to generate increasing value for customers and other stakeholders.

Results:

There are four Results areas, shown on the right-hand side of the Model. These are the results an
Organization achieves, in line with their strategic goals.

Customer Results:

Excellent Organizations achieve and sustain outstanding results that meet or exceed the need and
expectations of their customers.

People Results:

Excellent Organizations achieve and sustain outstanding results that meet or exceed the need and
expectations of their people.

Society Results:

Excellent Organizations achieve and sustain outstanding results that meet or exceed the need and
expectations of relevant stakeholders within society.

Business Results:

Excellent Organizations achieve and sustain outstanding results that meet or exceed the need and
expectations of their business stakeholders
Radar Logic:

The RADAR logic is a dynamic assessment framework and powerful management tool that provides a
structured approach to questioning the performance of an organization.

Source: EFQM

Results:

Organization should Determine the Results it is aiming to achieve as part of its strategy. And it
should ask itself a question What are we trying to achieve?

Approaches:
Organization should Plan and develop an integrated set of sound Approaches to deliver the
required results both now and in the future. And it should ask itself a question How do we try to
achieve this?

Deploy:
Organization should Deploy the approaches in a systematic way to ensure implementation. And it
should ask itself a question How / Where / When was this implemented?
Asses and refine:
Organization should Assess and Refine the deployed approaches based on monitoring and
analysis of the results achieved and ongoing learning activities. And it should ask itself:

How do we measure whether it is working?

What have we learning and what improvements can be made?