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EFQM Excellence Model 2010

Guide to the model

(This is based on the EFQM Model 2010 version)

1. Leadership

What is Leadership? 1.1. Overview The classic model of the good business leader is the top man who directed and was in control of all aspects of his business. He operated through a hierarchy of management and his organisation had a fairly well-defined and right structure. This type of Leader had some good points and survived throughout most of the 20th century. But businesses today do not have the luxury of stability, they face an everincreasing change in markets, customers and technology. Their core business is constantly under threat from newcomers to the marketplace with a different business paradigm. Organisations cannot afford to depend upon the Leadership of individuals or small elite of senior executives to meet this challenge alone. They need to harness the ideas, skills, energy, and enthusiasm of their entire team to succeed. Since the 1980s, the concept and practice of Leadership has evolved to meet this challenge. 1.2. Who are the Leaders? Not only the CEO, company directors, senior executives, line managers are Leaders. In order to gain flexibility and responsiveness, the empowerment to lead has to be cascaded throughout the organisation. 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 organisation. 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 objectives through people. Most Leaders have a clear vision and are good at communicating it. They are definitely agents for change and inspire and motivate. 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 practice? 2.1. Establish a Vision and Mission One of the first steps that the Leaders in an organisation need to undertake is to establish why the organisation 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 organisation. 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. Instil Values The Vision and Mission need the environment of your organisation to nurture and support them. The values that you live by and the culture of your organisation play an important part in ensuring that you can achieve your goals. 2.3. Communication, Communication, Communication Communication with your people to reinforce the Vision, Mission, Values and Culture is necessary to ensure that the organisation is working together.

Communication of the Policy and Strategy is necessary to make sure that everyone is going in the same direction. Communication is necessary to understand and sell to ones customers. Communication is necessary to understand and negotiate with ones suppliers. Communication with your other Stakeholders is necessary to maintain their trust in your organisation and engage with them. You have to know who your different external stakeholders groups are and develop approaches to understand, anticipate and respond to their different needs and expectations. A good communication 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 attention not only to the words, but also your tone and facial and body expressions. Furthermore, communication has to be at the right time and knowing who your target audience is. In staff surveys, poor communication from leaders is one of the most common causes of dissatisfaction. So it is important to get it right. But in order to communicate effectively, you must understand those that you are communicating with and choose the most appropriate way to communicate.

2.4. Act as agents of change In order to achieve Excellence, your organisation 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 routines. It challenges your pre-conceptions. 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 first 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 drivers of organisational change. There is no one recipe for success but some ideas are: Do something culturally symbolic, for example: investigate an open door policy, empower people. Do something structural within the organisation, for example: make the offices open plan, redecorate. Involve everyone: ask opinions on the changes, include everyone in the process of defining your Vision and Mission. Do something more fundamental, for example: restructure your organisation around processes not functions, perform a Self-Assessment. You will need to be energetic, enthusiastic, inspiring and motivating 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 patience. 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 actions. You can use Staff 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 time to involve your colleagues and agree an improvement plan. If you are still at the beginning of your road to Excellence, you may gain sufficient

ideas for ways to improve. But there are many sources of ideas and training. Another source of information may be less familiar to you Benchmarking. This involves comparing your organisation with another and identifying points and Good Practices which you could use.

2. Strategy

How do you know who your Stakeholders are and their expectations of your organisation? No organisation operates in vacuum. It interacts with other interested parties, some welcome, some perhaps less so! This grouping of interested parties is often described as your set of Stakeholders. Each organisation is unique and there is no single, all encompassing list that would summarise everyones Stakeholders in great detail. However, there are some generic groupings that are applicable to all: - Your Customers - Your People - Your Partners & Suppliers - The Society in which you operate (external indicators, economic, market and societal trends,...) - Those with an interest in the financial performance of your organisation, be it Shareholders, public sector, Budget holders or Trustees, for instance. Any organisation 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 expectations of both stakeholders and the external environment, also understanding internal performance and capabilities. It is responsibility of the organisation to ensure economic, societal and ecological sustainability. Having identified who your Stakeholders are, the next challenge is to create mechanisms and processes that will allow you to identify their current and future needs and expectations. At the simplest of levels, gathering this data will help inform you during your planning process on what to Start, to Stop and to Continue. There is a range of tools and techniques that an organisation can use to help it identify the present and future needs of its Stakeholders, for example: Surveys, Focus Groups, Scenario Creations, Benchmarking and SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). The excellent organisations set clear goals and objectives for innovation and refine their strategy in line with innovation 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 organisation concentrate on the vital few pieces of information it needs rather than risk drowning in data. Nowhere is this better exemplified than in the clear linkage between how an organisation could take the results of its performance and planning its future direction. Knowing what your current performance level is, how it compares with past performance, how it compares in relation to your competition and best in class is a powerful input to any debate on your organisations future direction. 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 organisation) it is at this stage that the information gathered from your Stakeholders and other sources is converted into a tangible strategy for moving forward. The strategic plan should include information on what is expected to be achieved, the resources necessary to deliver it, the timescales for completion, the key processes involved, clarity on the ownership of specific components within the strategy and the costs and benefits expected. The Balanced Scorecard is a useful tool for helping to develop the strategy further, helping the decision maker(s) ensure a holistic view of the business and take into account all Stakeholders' needs.

How do you deploy your plans for the future throughout the organisation? Having identified the future direction and desired end state, an organisation needs to have a way to deliver this end state. Good Practice organisations achieve this by taking a Process Management view of the world rather than one based on a traditional functional approach. Firstly they establish their key processes. Typically these are the ones that deliver value to the external customer and other identified 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 often called Critical Success Factors. Good Practice organisations establish frameworks for managing these key processes. The framework will need to be reviewed regularly to make sure that it is still "fit for purpose". Allowing for sector specific issues, one might reasonably expect the framework to be reviewed at least annually through a process involving senior executives, process owners and others with knowledge about the various processes.

How are your plans for the future communicated and implemented? Having determined the future direction based on a Stakeholder focused approach, and identified the key processes and Critical Success Factors, the next challenge is to make sure everyone in the organisation understands the direction, the reasons why, plus their own roles in the future. Communication of the plans for the future is an important factor in being successful and Good Practice organisations recognise that it is not enough simply to send, for instance, e-mails to everyone, or post a letter to employees homes. In Good Practice organisations, communication of the plans for the future is recognised as a three way process: top down, bottom up and sideways. - The bottom 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 responsibilities that are inappropriate. Good Practice organisations use a number of tools and techniques to help them communicate the plans for the future. At the same time they make them relevant and meaningful to their people by converting them to specific objectives linked to the tasks that individuals and teams perform. It is important to align people in order to maximise their contribution. The strategy has to be communicated with Stakeholders too. Probably the three most widely used tools and techniques at the moment for converting plans into cascaded objectives in a linked and integrated manner are: - The Balanced Scorecard - Dashboards - Hoshin Planning So, the strategy is deployed in a systematic manner to achieve the desired set of results, balancing short and long term objectives.

3. People

Why People? 1.1. Overview People have always been essential to organisation, because they provide inspiration, creativity, vision and motivation that keeps an organisation alive. They provide the skills and competencies necessary to make an organisation work. And of course they provide the labour that produces the goods and services that an organisation supplies. They are a major and often the most important resource that an organisation has. The post-Industrial Revolution model is obsolete, the economy is changing to a new ways of working, where one of the major determinants of an organisations success is the intelligent use of knowledge. 1.2. Who are your people? You could say that your people are your full-time paid employees. This is of course true and for some organisations this would be the whole story. However, there are many other ways in which people contribute to your organisation: - Have part-time or piece-work contracts, short-term contracts - Temporary labour to fill in for peaks in demand or sickness - Sub-contractors - Support staff: security guards, kitchen staff 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 organisation? All Good Practice organisations recognise and value the vital contribution 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 organisation 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 effective way.

How do you manage, develop and involve People in your organisation? 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 organisations 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 identified objectives, targets and priorities. 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, legislation, not to mention financial constraints. It is highly likely that you need to adjust your people resource, either in numbers or by changing the focus of their activity. 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 effect that the changes will have on them. Good Practice organisations 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 organisational structure, your People should be allocated according to the priority of the process and understand the processes to which they are contributing. Another aspect of managing People which no organisation can afford to ignore is fairness. Equal opportunities regardless of race, sex, creed or colour are required by many national legislation. It is always in an organisations interest to ensure fairness and transparency when dealing with its people as this minimises suspicion, envy and the consequential loss of motivation. 2.2. Develop your Peoples knowledge and competencies - Choose the right People! It is very important to match your People to the organisation and the specific job. The most common criteria used to select People for a job are qualifications, technical skills and experience. But these criteria are never the only considerations. In many cases, providing that People have the basic skills needed and the right attitude to learning, they can often be trained in the specifics of a job. If they dont have the right approach and personal culture, it is much more difficult 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 organisation and vice-versa or they will find it frustrating 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 organisation, the competencies required by the job and the approach an attitude of the person that you need. - Appraise and review your people. In Good Practice organisations, performance appraisal is a well-established and integral part of the management and development of their people. Some of the main objectives are: review past performance against targets, recognise success, identify skills and competencies, agree targets for future performance and identify training and personal development needs. There is often a formal review on an annual or 6-monthly basis. But this should not be seen as the only or main opportunity for identifying 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 dissatisfied, de-motivated and potentially disruptive staff. 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 practical and financial reasons to undertake proper training. Besides, training and development does not necessarily mean sending People on a course, there are more options: 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 flexible and effective organisation, improved performance and happier and more committed people. - Encourage teams: One of the most effective ways of involving and empowering People is helping them to build teams, but not in the traditional way of functional groups. Functional teams

have a tendency to focus on the function 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 defined as a group of people acting with a common purpose and shared responsibility for the success or failure of their efforts.
- Empower your When


empowerment is done properly, it can be a great liberator of energy. It can motivate and expand peoples horizons. It gives the organisation a great deal more flexibility 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 setting guidelines for their sphere of action. It views power as a collective responsibility rather than an individuals prerogative.

2.4. Communicate with your people Communication with your People is fundamental to achieving your organisations objectives. At the most basic level, if they dont know what you want, how can they do it? But communication is much more than conveying instructions; it is the means of involving and motivating your People. There are many ways for getting the message across, you will need to choose the most effective and appropriate technique baring in mind the size of your organisation, the number of locations that you have and the distances between them. 2.5. Reward, recognise and care for your People Good Practice organisations recognise that their relationship with their People should go beyond the specifics of the contract and the financial remuneration. They acknowledge the value that the person brings to the organisation 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 organisation. It motivates People to try again the next time. It is also good manners to thank People for a job well done. It shows that you have noticed their efforts and appreciated them. You have to ensure a safe and healthy working environment for your People, and encourage them, along with other stakeholders, to participate in activities that contribute to wider society. Rewarding, recognising and caring for your people is good for them. But it is also good for the effective working on your organisation, 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 organisation and also how they feel about it. They can give you feedback on how well they are doing and also how this is impacting the customers and the organisation. There are several techniques that can help you to assess and measure the effectiveness of your approach. Here are some examples: - Staff meetings - Staff Appraisals - Staff Surveys - Self-Assessment Whichever method you choose, it is important to review the effectiveness 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 time to involve your colleagues and agree an Improvement plan.

4. Partnerships & Resources

Partnerships 1.1. What do we mean by Partnerships? We define a partnership as a working relationship between 2 or more parties creating added value for the customer. Partnership may be formed with amongst others, customers, society, key suppliers, educational bodies or Non-Governmental Organisations (NGO). Excellent organisations plan and manage external partnerships, suppliers and internal resources in order to support strategy and policies and the effective operation of processes. They ensure that they effectively manage their environmental and societal impact. 1.2. How do I decide who could be a good Partner and supplier for me? Excellent organisations segment and differentiate partners and suppliers, in line with the organisations strategy, and adopt appropriate policies and processes for effectively managing them. They build a sustainable relationship with partners and suppliers based on mutual trust, respect and openness. 1.3. What about my current Suppliers? Where do they fit? The concept of Partnerships goes beyond the traditional customer/supplier relationships but normal suppliers still 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 software support? What might be the benefits of a more integrated relationship 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 organisation. The relationship becomes closer with those that survive and, indeed, in many organisations there are examples of suppliers moving into a Partnership with one of its customers. 1.4. What are the benefits? The purpose of entering into a Partnership is to provide the organisation with some

added value that it cannot achieve in any other way for the same, or led, outlay in time, money and materials. Typical benefits can include one, some, or all of the following: Reduction in time to market, First to market with new technology and Reduction in costs. The management of Finances to secure sustained success Whatever the sources, an Excellent organisation will have systems in place that help it to both fund its ambitions and, just as importantly, manage its financial resources in support of its daily operations, including funding for improvement activity. All organisations need to be clear on what their most important financial performance parameters are, Cash Flow and Turnover for instance. You may also be aware of other measures which are important for your organisation, given the nature of your business. Use of tools such as Risk Management, Discounted Cash Flow (DCF), sensitivity analysis, Internal Rate of Return (IRR), cost benefit analysis, Economic Value Add (EVA) and Activity Based Costing (ABC) can all help an organisation to better manage its financial capabilities. The concept of delegation of financial control is a common theme shared by Excellent organisations, also, the development of financial control is linked with the individuals performance appraisal. There are different criteria to plan the future and decide whether a particular investment is the correct one, for example: an estimate of costs, capital expenditure, customer benefits and an estimate of deadlines. Excellent organisations deliver high levels of stakeholder confidence by ensuring financial risks are identified 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 static one, and it demands that no matter 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 fixed assets. We can use different 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 productivity, reducing throughput times, inventory and time to market.

- Total Productive Maintenance (TPM): It takes a preventative approach to maximising the potential output of your equipment by creating conditions for perfect production (zero losses, zero defects, zero accidents...). - The 5S Philosophy: focuses on effective work place organisation and standardised work procedures. 5S simplifies the work environment, reduces waste and non-value activity while improving quality efficiency and safety. One of the biggest challenges facing organisations today is to identify how to get more out of the resources it uses than perhaps it currently achieves and, at the same time, recognising its responsibility to be a good corporate citizen, minimise the harm it currently causes to the environment (and manage any adverse effects). A growing number of organisations are adopting 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 specific business activity. Instead, it offers a framework for an overall strategic approach to your policies, plans and actions. A second framework is the Eco-Management Audit Scheme (EMAS). The overall objective of this European Commission initiative is to promote continuous environmental performance improvement and provide relevant information to the public. The management of Technology to support the delivery strategy The organisations that aspire to Excellence recognise the impact potential 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 benefits generated. They use technology to support innovation and creativity. The management of Information and Knowledge to support effective decision making Excellent organisations have processes in place that help them to manage this mountain of data, information and knowledge to best effect. 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 offer insight. - Information is data with context and perspective. - Knowledge is itself split into two. Explicit knowledge is that which can be transmitted through formal, systematic processes and tacit knowledge which is personal, context specific and not easy to articulate or formalise. It is based on experience, instinct and intuition. The concept of the right people having the right information at the right time, 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 organisations

use data and information in the current performance and capabilities of processes to identify opportunities for, and generate, innovation. Returning now to the concept of managing the knowledge an organisation 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 organisation. How might an organisation 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 organisational 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.

5. Processes, Products & Services

Process, Product and Services in Excellent organisations Excellent organisations design, manage and improve Processes, Products and Services to generate increasing value for customers and other stakeholders. Excellent organisations design and manage Processes to optimise stakeholder value. They clearly define process ownerships and roles and responsibilities in developing, maintaining and improving the framework of key processes. New ideas are turned into reality through innovation-processes that fit the nature and importance of the changes they will make. Your processes are meant to develop Products and Services that create optimum value for customers. In order to be innovative, use market research, customer surveys and other forms of feedback to anticipate and identify improvements in your product and service portfolio. Involve your people, customers, partners and suppliers in the development of innovative products, services and experiences. Design them for both existing and new customer groups. Excellent organisations define their business model in terms of core capabilities, processes, partners and value proposition in order to effectively promote and market their product and services. What do we mean by Processes? A process is a sequence of activities which adds value by producing required outputs from a variety of inputs. So, all organisations use processes ordering material, making products, selling services... The inputs will generally be the outputs of other processes. During the transformation, value is added and resources consumed. The output can be an object, information, data or a decision. The customer may be either external or internal to the organisation. Any representation of a process should therefore include the input, activities, output and the resources required. There are four basic questions 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 Practice organisations 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 organisations objectives and targets and it is the organisations key processes that will deliver those organisational goals and Critical Success Factors (CSFs). CSFs are statements that define what the management team must accomplish for the organisation to achieve its mission. Typically, each CSF will begin with the words we must or we need. Accepted Good Practice suggests that no more than eight CSFs should be identified. The needs of all Stakeholders help define the strategies and plans for the organisation. These strategies and plans, in turn, help to identify the key processes, the outputs of which, will satisfy the Stakeholders needs. So, once the organisation is clear on its overall strategy and business goals and knows what the Critical Success Factors are, then it is possible to identify the key processes that will help deliver the required strategy. How do I identify my Key Processes? - Brainstorming: people discuss all the business activities and then decide which are the most important. - Interviewing key Stakeholders: those people affected by or having an impact on the processes - Using the services of an external consultant - A further option is to start with the generic Porter model and then customise it to the organisation. In determining your key business processes, a main question to ask yourself is: from the perspective of my business strategy, which process are key to achieving my business objectives? It is worth mentioning here that when defining the performance requirements of your key processes, as well as ensuring that the business objectives are met, you take into account other considerations such as: Key Stakeholders view of performance,

The organisations desired future state and What the competition is doing. Building a Process Model of the Organisation The next step is to build a top level Process Model of the organisation that begins to show the flow of activities and the inter-relationships. This top-level view can be used to understand and describe the activities of the organisation. Below that, processes can be modelled in more detail. This can lead to modelling of subprocesses to describe at the working level, the process operation, and to allow both re-engineering and step-by-step improvements to improve efficiency and effectiveness. At the top level, generally speaking, most Good Practice organisations 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 objectives of the organisation). The analysis of your key processes then continue as you decompose each key process into its component parts. Typically, organisations 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 specific 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 descriptions need to represent the linkages in some way. This is known as process-mapping. A simple way of representing a process is to use a flowchart that can link (in a logical sequence) the activities that make up the process. The advantages of this method are that it is simple, requires no significant investment in expensive software tools or training, and is relatively quick. A disadvantage is that on a flowchart it can be difficult to describe the resources required to carry out the activities. A refinement is to use the technique known as deployment flowcharting. The Role of Measurement in Process thinking If your organisation aspires to improve, then measurement is critical 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 organisation manage the process across the different functional silos to good effect.

Measurement is important because it is the critical 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 Quantitative and Qualitative measures. Measure should address both the effectiveness and efficiency of the process.

How do you Manage and Review your Processes? Generally speaking, Good Practice organisations put in place a combination 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 organisation. Clear roles and responsibilities for managing processes exist. Cross functional teams, trained in process improvement, are in place. A system of recognition 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 Statistical Process Control (SPC), Failure Mode Effects Analysis (FMEA) and Six Sigma.

6. Customer Results

Why are Customer Results Important? 1.1. Overview Excellent organisations design and manage processes and systems that enable them to understand, monitor and assess their customers needs and opinions. They have a structured approach to approach valuable customer-related data as well as Customer Results. 1.2. Definition of a Customer and Customer Results According to EFQM, The customer is the final arbiter of product and service quality and the Customer Focus is a Fundamental 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 practice organisations invest a substantial amount of time 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 Customer Result is the reported outcome of those efforts and actions. 1.3. Lagging and Leading Indicators Explained - Lag Indicator: A measure that quantifies some characteristics after an event. - Lead Indicator: A measure with proven ability with respect to some output. 1.4. Beyond Customer Satisfaction EFQM used to refer to Customer Satisfaction as the key lag Indicator for Customer perception results. A study by the EFQM Customer Satisfaction Task Force revealed that while Good Practice organisations do measure Customer Satisfaction, they often progress to a broader understanding that includes customer loyalty and customer value. The more an organisation learns about the impact of customer patronage on business results, the more skilled it will become at asking the right questions and collecting the right sort of information from Customers and internal processes. The more an organisation understands the range of success drivers that influence a Customer's choice of Suppliers, the more likely it is to measure relevant areas of the

relationship with the Customer, producing results that reflect an accurate and complete picture of the nature of the relationship - past, present and future. Good Practice organisations use these results as the basis for reviewing strategy, improving processes and producing new products and services. What are you Measuring and Reporting? 2.1. Perception Measures The EFQM Excellence Model separates Customer Results into two distinctive groups of measurements that also correspond to lagging and leading indicators. Customers perceptions of the organisation (obtained, for example, from customer surveys, focus groups, vendor ratings, compliments and complaints), represent the most important dimension of Customer Results and contain the majority of lagging indicators. The first challenge facing an organisation is to decide on a relevant set of perception measures. There are two main considerations. The first is to ensure that the process of perception measurement provides information on the various activities undertaken by the organisation in its pursuit of fulfilling customer requirements. The second consideration is the importance and priority attached to the measures by the Customer. The most sophisticated measurement system in the world is of little value if it does not deliver data that is relevant to the Stakeholder group! "Good" results in irrelevant areas will not help an organisation to focus on improvement actions that will make a difference 2.2. 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. Organisations rely on lead indicators that will provide data on its operations 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 Segmentation) What does a comprehensive set of Customer Results mean for your organisation? The answer is directly related to the range of Customers that you serve and the size and nature of your portfolio of products and services. An incomplete set of Customer Results can have a dramatic impact on the value of the information collected for informing improvements, future strategy and business results. There are three potential mistakes:

To assume that Customers think alike and act alike. Organisations that assume success because they receive positive 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 influential in the future allocation of public funds. Segmenting Customers into meaningful groups ensures that the diversity of requirements and needs is identified and effective strategies determined for each group.

To canvass opinion and collect performance data on a limited or popular group of products and services, neglecting other aspects of the organisations offerings that might be high or low maintenance, high or low revenue generating, or key differentiators in the market place. Asking only about the most popular products or services could prevent you from identifying some important opportunities. To limit the collection or analysis of Customer Results to certain geographical locations or functions within the organisation.

2.4. Setting Targets One component of assessing an organisations performance in relation to Customer Results is to see the results matched against the targets set by the organisation. Even then, we might not be fully satisfied unless we know if the targets set are relevant in terms of an organisations declared aspirations. Effective organisations apply specific targets to specific indicators rather than setting one or two general targets to cover whole groups of indicators. 2.5. Trends The EFQM Excellence Model encourages organisations to plan and manage for repeated, durable, good performance, rather than be satisfied with "one-off" success relying more on good fortune and serendipity. Sustainability is assessed by the degree to which the organisations Customer Results show positive trends over three to five years and evidence of the likelihood of it continuing. 2.6. Use of Benchmark Data Using Benchmark Data begins with the development of a Benchmarking strategy that will direct your efforts as you Benchmark at the process, organisational and metrics levels. The critical success factors for successful Benchmarking are your Benchmarking methodology and your choice of Benchmarking partners. The successful selection of both should lead to the collection of data that could have a very significant effect on the improvement of your Customer related processes, the targets you set and how you interpret the results. Presenting Results: The most effective way of presenting Customer Results is graphically. They need to be communicated to all the organisation. A Balanced Scorecard can be used as an important tool for communicating that.

7. People Results

Why are People Results Important? Motivated and satisfied People are essential to success because they are the resource that differentiates your organisation. People provide the inspiration, creativity, vision and motivation that keeps an organisation alive. They provide the skills and competencies necessary to make an organisation work. And of course they provide the labour that produces the goods and services that an organisation supplies. They are a major and, many would say, the most important resource that an organisation has. People who have no job satisfaction (motivation, enthusiasm, commitment) are not productive as they could be. They will not give your customers the best service, they wont bother if they produce errors, they wont be innovative and wont optimise use of resources. In order for People to be satisfied with their job and motivated to do their best, they need to be convinced that the organisation acts in their best interest, provides them with the facilities, 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 organisation is perceived by the outside world. They realize that, on the long term, this outside perception indicates the probability of secured and rewarding employment. You need to know how people feel, behave and perform in your organisation. This gives you the basis to increase productivity, solve issues, celebrate achievements. Knowing your People Results, in order to be able to act upon them, is an essential part of the delivery of your strategy. Starting with the Enablers People results are influenced 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 influence how your people feel about working in your organisation. 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 different measures that you can use to gain an insight into what your People think, but first, you have to consider what are the fundamental drivers that motivate and satisfy People (Maslows Hierarchy of Needs). People are motivated to satisfy the lower level needs before they can move to the higher levels. Within each need however, everyone has different specific wants. So, in order to understand your People and the focus of their motivation, you need to understand how they are acting and how they perceive themselves within the need hierarchy. You also need to understand the specifics of what they want. Measures that enable you to do this are the most useful and also help you identify how to improve your people results. Within the EFQM Excellence Model, two categories of measures are identified:

Perception Measures: are of the Peoples perception of the organisation. Performance Measures: are the internal ones used by the organisation to monitor, understand, predict and improve the performance of the organisations People and to predict their perceptions.

2.2. Perception Measures Perception Measures are how People feel about themselves, their job and about the organisation. These are subjective measures but should be treated seriously as they provide you with a very useful indicator of the health of the relationship between the organisation and its People. As these measures focus on the effect of what has already happened, they are sometimes called Lagging Indicators. Peoples perceptions of the organisation can be measured through their assessment of two main factors: their motivation and their satisfaction. It is important to understand that, although motivation and satisfaction are interrelated, they do in fact have very different consequences. A person who is happy with the terms and conditions of their job may be satisfied but not necessarily motivated. Someone who agrees with the organisations strategy and relates to its leaders may be highly motivated to succeed but may not be satisfied with the pay. To measure your Peoples perception, you need to look at the topics that are important to your organisation, but it is insufficient 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 perceptions and are sometimes called Leading Indicators. Performance indicators identified in the EFQM Excellence Model are categorised into 5 sections: Involvement and engagement Target setting, competency and performance management Leadership performance Training and career development Internal communications 2.4. The Path to Excellent Results The Excellence of the Result is determined by the degree to which an organisation can demonstrate trends, targets and comparisons (numerically) with clear references to causes and the presentation of a set of results that correspond to the range of activities and the size and nature of the organisations. - Setting Targets: The targets need to be relevant in terms of the organisations declared aspiration and should be demonstrably stretching in a direction that supports your business strategy and not easily achieved without effort. - Trends: the EFQM Excellence Model encourages organisations to plan and manage for repeated, durable good performance (at least 3 years). - Benchmark data: you can Benchmark processes, organisations and/or metrics (measurements). 2.5. Getting started The most common technique is the staff survey, but there are others that you can use too. You will find numerous staff 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 expectations of specific groups within your organisation.

Communicating and Acting 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, communicating the results gives you a golden opportunity to get them involved. There are myriad of different media for communicating the results to your people, so choose the best to your organisation. In order to be credible to your people, they need to see the complete picture and be convinced that the organisation is being open and honest with them.

8. Society Results

Why are Society Results Important? 1.1. Overview Nowadays, whilst financial performance continues to be a vital factor, other parameters such as a focus on Customer Value, Employee Satisfaction, Strategy Deployment, Supplier Performance and Partnership and Alliance Success Rates are also important Key Performance Indicators. Some organisations have gone much further than this, they have extended their definition of Excellence to an examination of the extent to which they conduct their business ethically and co-exist in harmony with different groups in Society. Customers and potential customers can, and do, exercise choice. Price is not the only determinant - an organisations stance on social and environmental issues can carry significant weight in the mind of the consumer and can have a dramatic impact on the bottom line. Legal Responsibilities are increasing too, so the organisations need to adapt their performance in order to obey the law. Environmental policies bring real benefit to shareholder value. Your organisation will benefit from recycling, supporting the local community, involve your people in local activities, donate de-commissioned assets, create employment in the area, etc. There are also situations where social responsibility actions have its origins in the need for an organisation to stop a crisis arising, limit the damage already caused, or protect the organisations reputation. No organisation is immune from potential conflict and problems with their societal responsibilities. Excellence organisations design and manage processes and systems that enable them to understand, monitor and assess their engagement with Society Stakeholders. Collecting and analysing Society Results is a crucial part of the way they operate. 1.2. Definition 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 staff member. This means that when a customer or a member of staff is in the building, the impact of your relationship with them is measured under Customer Results or People Results or Key Performance Results (Criterion 9). However, when they are at home, sitting in their favourite chair watching the

television, these people become members of Society, living within communities that may, or may not, be impacted on by your organisation. Society is also the environmental world within which the organisation inhabits. In this sense, the definition includes the flora and fauna surrounding an organisations place of work. There is an Internal Society too, which is inside the organisation, between different employees. 1.3. Starting with the Enablers Policy and Strategy Practical experience has taught us that when organisations start to use the EFQM Model, they find Society Results very challenging if they have not developed a strategy for managing their relationships with the different groups in Society. To develop that strategy, you need to follow a process following the steps suggested below: 1. Identify your society Stakeholders and determine the desired relationships and policies 2. Create approaches / processes and measures to deliver the desired relationships 3. Ensure that society stakeholders management has full support of leaders 4. Ensure that staff are appraised and recognised for supporting the strategy 5. Measure your success from the perspective of society, customers and people 6. Consider the results in relation 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 significant difference between Good Practice organisations 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 organisations undertaking Self-Assessment often find 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 quantified their efforts and have only a general sense and a set of assumptions about the impact they are having. Some organisations take the attitude that measurement is not important, but Good Practice organisations apply the same rigour to their relationships with Society Stakeholders that they apply to other Stakeholder groups. 2.2. Perception Measures The EFQM Excellence Model separates Society Results into two distinctive groups of measurements: Societys Perception of the organisation (obtained, for example,

from surveys, reports, public meetings, public representatives, governmental authorities) and Performance Indicators, such as quantity, frequency, volume or weight, measured by the organisation. There are two main ways of collecting data in relation to Societys Perception : - Direct canvassing, usually via surveys commissioned (survey measures are often called laggin indicators because they happen after event - Indirect collection, benefiting from data collected by other parties. 2.3. 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. Performance measures are usually linked with volume, frequency, time and weight. Organisations often find that it takes little effort to install a measurement system in relation to their activities. Perception Measures and Performance Indicators quantify efforts and help organisations to understand the degree to which policies are being deployed and efforts are justified. Bringing a measurement culture to your Societal and Environmental activities will enable you to focus your improvement efforts and determine accurately if you are part of the problem or the solution! 2.4. Achieving Excellent Society Results The Excellence of the Result is determined by the degree to which an organisation can demonstrate trends, targets and comparisons (numerically) with clear references to causes and the presentation of a set of results that correspond to the range of activities and the size and nature of the organisations. - Setting targets: An organisations performance in relation to Society Results cannot be assessed fully unless the results are matched against the targets (relevant in terms of the organisations declared aspirations) set by the organisation. - Trends: Sustainability is assessed by the degree to which the organisations Society Results show positive trends over a period of years. - Use of Benchmark data: Regardless of whether you Benchmark at the process, organisational or metrics level, using Benchmark data should begin with the development of a Benchmarking strategy that will direct your efforts.

- Range of Results: An incomplete set of Society Results can have a dramatic impact on the value of the information collected for informing improvements, future strategy and business results. The Results need to be segmented to understand the experience, needs and expectations of specific stakeholders within Society.

How are you communicating the Results? Managing your communication processes as well as your content will enable you to use your Society Results as a way of building even better relationships with your Stakeholders and reinforcing the concepts of win-win.

9. Business Results

Begin with the End in Mind 1.1. Overview Everything an Organisation does produces an outcome or result This is an important message for all organisations. In addition to the more traditional types of results associated with volume, cost and quality of products or services, all organisations generate results from the action of transacting information and knowledge between two or more parties everyday (e.g. staff to staff, staff to customers etc). In Good Practice organisations, all actions of every employee are designed to add value to the business and therefore to influence performance and the specific results the organisation achieves. 1.2. The Significance of Results The significance 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 settle invoices on time and the degree to which you respect their brand integrity when using their products or services to enhance your own. Customers and beneficiaries have a similar interest in knowing that you are a reliable organisation to do business with, that you will honour commitments made and continue to meet present and future needs. Employees rely on sound financial results as some insurance for future employment. They will look to see if the company pension scheme is secure, employee share schemes beneficial and remuneration paid on time and at an appropriate rate in the market place. 1.3. Definition of a Business Performance Result EFQM does not want you to expend time and energy collecting data to produce results that do not contribute a great deal to understanding your performance or your Stakeholders' satisfaction. Instead, we urge you to identify the most significant areas in terms of the impact on the business strategy, plans and customer experience. It is useful the Principle of Pareto, which typical pattern will show that: 80% of output is divided from 20% of inputs 80% of consequences flow from 20% of causes 80% of results comes from 20% of effort

The 80/20 Principle challenges us to find the 20% of measurement points that provide 80% of the most valuable information about our processes, our products and our services. We can start to identify 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 financial performance of an organisation will be among its most important Key Performance Outcomes. Within Kaplan and Nortons Balanced Scorecard four perspectives, the Financial Perspective with its emphasis on measures such as Revenue Growth, Asset Utilisation, Growth and Operating Costs. However, when EFQM refers to Key Performance Outcomes, do not be fooled into thinking that we are only talking about financial 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 operational ones used in order to monitor, understand, predict and improve the organisations likely key performance outcomes. Within Kaplan and Nortons Balanced Scorecard four perspectives, the Internal Perspective and Learning Perspective come closest to the idea of KPIs. 1.4. Differences between Commercial (large and small), Public Sector and Not-for-Profit Organisations It is a myth that there are vast differences 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-profit organisations. 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 perspectives. The rigorous scoring framework that accompanies the EFQM Excellence Model (RADAR scoring matrix Results, Approach, Deployment, Assessment and Refinement) offers a very clear picture of its expectations in relation to Results. The Excellence of the Result is determined by the degree to which an organisation can demonstrate trends, targets and comparisons (numerically) with clear references to causes. The results must also correspond to the range of activities, size and nature of the organisation. - Trends: The EFQM Excellence Model encourages organisations to plan and manage for repeated, durable good performance rather than be satisfied with one-off success.

Sustainability is assessed by the degree to which the organisations Key Performance Results show positive trends over a period of 3 years. - Setting Targets: An organisations performance in relation to Key Performance Results cannot be assessed fully unless the results are matched against the targets set by the organisation. Even then, we might not be fully satisfied unless we know if the targets set are relevant in terms of the organisations declared aspirations. - Use of Benchmark Data: The Critical Success Factors for Benchmarking are the methodology you use and your choice of Benchmarking partners. - Range of Results (Scope and Segmentation): Although you may be measuring a range of activities and processes, both in terms of Outcomes and Indicators, there are a number of interesting questions: How selective 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 pertinent, comprehensive set of Results for your organisation? 1.6. Organisations without a Culture of Measurement or Results-Orientation In organisations that dont measure or set targets, results are still produced but the degree to which they meet Stakeholders requirements will depend more on good fortune than planning. When organisations start to use the EFQM Excellence Model, a substantial proportion of them score low in the Results criteria, not because their work does not produce results, but because they have never managed their activities 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 organisation 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 difference through the achievement of pre-determined objectives 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 satisfied and loyal. - Data Collecting, Reporting and Communicating:

The core components of data collection are linked with clearly defined processes for collection, with more and more organisations using software and often Intranet collection and display solutions. The results need to be segmented to understand the performance levels and strategic outcomes achieved within specific areas of the organisation. A good set of results can have an immediate impact on Stakeholders confidence and it is important to convey the right message to the right people. - Employee Involvement and Empowerment: Performance Management Systems cannot work if the staff do not play a full role. - Role of Leaders and Managers: Leaders and managers have important roles to play in developing, promoting and deploying the Performance Management System. They have to be results oriented. - Training for Measurement, Results and Improvement: Good Practice organisations 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 better tomorrow. However, the secret to effective improvement is knowing what to improve and how to improve it. Results will provide us with valuable data but the full story cannot emerge until we first determine our results with reference to our plans and our priorities, execute, measure the results or outputs of our efforts and take remedial action.

Benefits of using the EFQM Excellence Model

The general benefits of using the EFQM Model are the following: Satisfied and loyal customers Successful leaders A common sense of purpose throughout the organisation Constant, well managed change Engaged and motivated people and other stakeholders An upward flow of ideas Efficient and effective use of data Efficient and effective operation Pride and the desire that drives further improvement Minimal fire-fighting / recurring problems Innovation is the norm Excellent results, including good financial performance The specific benefits of using the EFQM Model are the following: Future Focus Key Results Innovation Sustainability Reactive to change in the environment The typical Benefits for Management are the following: See the link between strategy and operations Engage employees in change Lead improvements The typical Benefits for Leaders are the following: Help deliver the strategy Understand what is important to do as a leader Develop a unique culture where excellence is the norm The typical Benefits for Employees are the following: Provide their input to build a common direction Understand the impact of their action Contribute to progress


The EFQM definition of Organisational (Performance) Assessment: Is a comprehensive, systematic and regular view of an organisations activities and results referenced against the EFQM Excellence Model. The assessment process allows the organisation to discern clearly its strengths and areas in which improvements can be made and culminates in planned improvement actions that are then monitored for progress. As the definition above makes clear, the primary purpose of undertaking Assessment should be to drive improvement. Furthermore, to be successful it must be linked to other management processes within the organisation, primarily the strategy development and business planning processes. What are the benefits of Self-Assessment? Providing a highly structured, fact-based technique to identifying and assessing your organisations Strengths and Areas for Improvement and measuring its progress periodically. Improving the development of your strategy and business plan. Creating a common language and conceptual framework for the way you manage and improve your organisation. Educating people in your organisation on the Fundamental Concepts of Excellence and how they relate to their responsibilities. Developing the management skills of staff. Involving people at all levels and in all units process improvement. Assessing, in a coherent manner, the organisation at a macro and/or micro level. Identifying and facilitating the sharing of your good practice within the organisation. Facilitating comparisons with other organisation, of a similar or diverse nature, using a set of criteria that is widely accepted across Europe and beyond. Integrating the various improvement initiatives into your normal operations. Providing opportunities to recognise both progress and outstanding levels of achievement through internal awards. Preparing the organisation before it applies for the EFQM Excellence Award or a national or regional award of a similar nature.

How do I conduct a Self-Assessment? The generic 8-step process

Step 1 Gain & retain management commitment. There is a greater chance of success if the senior management team has an active involvement in the process plus a sound grasp of the EFQM Model and the Fundamental Concepts of Excellence. Step 2 Develop and deploy the communications strategy. For Self-Assessment to be successful in your organisation it is imperative that early on in the process you have a clear strategy for the message you want to communicate. Step 3 Plan for Self-Assessment. When considering which specific Self-Assessment technique to adopt, the current culture of your organisation needs to be taken into consideration. There is no superior technique for Self-Assessment. The most important factor is for the organisation to have clarity on the outcomes it is looking to achieve and then choosing the specific Self-Assessment technique that is the most appropriate for delivering those desired outcomes (you also can run two different techniques at the same time). There are no set rules, the Self-Assessment can be carried out at any and all levels. However experience shows that many organisations first undertake one or more pilots to test the water and learn more about the process. Step 4 Select and train people directly involved in the process. When undertaking a Self-Assessment there are a number of different roles that can come into play dependent upon the specific technique employed. Some roles, such as sponsor, project manager and staff will feature regardless, others (Assessor, Assessor Team Leader, Facilitator, Data gatherer, Report writer) are very much dependent on the technique chosen. Step 5 Conduct Self-Assessment. The introduction of any new process needs careful management. Self-Assessment is no exception to this rule and it is best managed as a project. The primary objective of Self-Assessment is to identify an organisations strengths and areas for improvement and create the energy to improve the organisations performance. Step 6 Consider Outcomes & Prioritise. Organisations are unlikely to have the resources to address all these opportunities concurrently and it would be unrealistic for them to try. Indeed some improvement opportunities may have limited impact on the organisations key results. Therefore you also need clear processes in place for the prioritisation of the outcomes, as well as the management of the subsequent improvement action plans and the ongoing monitoring of

progress through business as usual review cycles. Step 7 Establish & Implement. The outcomes from conducting the Self-Assessment provides the moment in time picture of the status of the organisation, usually expressed in terms of Strengths, Areas for Improvement and sometimes a score. Step 6 provides us with the list of prioritised improvement opportunities. Project management provides a structured methodology for implementing the action plans. Regardless of the size and nature of the specific activities committed to in the action plan, it is a good practice to: Produce a synopsis of the problem/gap to be tackled. Define the required deliverables. Determine the indicators of success. Include an indication of timescales and project resources. Have visible and specific accountability for delivery. Make sure actions are integrated into the organisations planning cycle. Action plans and the updated strategic direction should be communicated to all interested parties. Step 8 Monitor Action Plan Progress and Review the Self-Assessment process. As with any other activity, progress in implementing the improvement actions should be reviewed regularly and the whole process for linking Self-Assessment and business planning should also be reviewed and improved ready for the next Self-Assessment. Also, as mentioned previously, when introducing Self-Assessment into the organisation it should be positioned as a long-term intervention, not a one-off activity. Therefore a review of the process is a critical function if the organisation is to maximise its learning. An important part of the feedback loop between Step 8 and Step 1 is keeping the momentum going.


Approach The overall way by which something is made to happen - an approach comprises of processes and structured actions within a framework of principles and policies. Benchmarking A systematic comparison of approaches with other relevant organisations that gains insights that will help the organisation to take action to improve its performance.

Benchmarking is about identifying best practices that can help you boost your organisation performance. Accessing benchmarks means comparing your results to the ones a relevant company.

Benchmark A measured achievement for comparison and target setting purposes. Business Model The elements of the business that create and deliver value; these elements normally include the value proposition, the profit formula, key resources and key processes of the organisation. Change Management The approach during which the changes of an organisation or system are implemented in a controlled manner by following a pre-defined framework or processes, to support the achievement of the strategic goals. Change management enables the transition from a current state into a desired future state. Continual Improvement The ongoing improvement of processes that lead to achievement of higher levels of performance through incremental change. Core Competence A well performed internal activity or capability that is central to the organisations competitiveness, profitability or efficiency. Corporate Governance

A framework of authority and control within an organisation used to help it fulfil its legal, financial and ethical obligations. Creativity The generation of ideas for new or improved products, services, processes, systems or social interactions. Critical success factors Limited number (usually between 3 to 8) of characteristics, conditions or variables, that have a direct impact on the effectiveness, efficiency and viability of an organisation, programme or project. Culture The specific collection of values and norms that are shared by people and groups in an organisation that control the way they interact with each other and with stakeholders outside the organisation. Customer The recipient of products or services provided by the organisation. Empowerment The process by which individuals or teams are able to take decision making responsibilities, and operate with a degree of autonomy in their actions. Equal opportunity The practice of ensuring that all people receive fair and equal treatment regardless of gender, age, race, nationality, religion, disability or sexual orientation. Fundamental Concepts of Excellence The set of key and proven principles upon which the EFQM Excellence Model framework is based. Good/best practice Superior approaches, policies, processes or methods that lead to exceptional achievement. Since it is difficult to find out what is best, the term good practice is preferred by most organisations. Ways to find good practice outside the organisation can include benchmarking and external learning

Innovation The practical translation of ideas into new products, services, processes, systems or social interactions

Intellectual Capital The value of an organisation that is not captured in its traditional financial accounts. It represents the intangible assets of an organisation and is often the difference between market and book value. Key Processes The processes that are of the utmost importance for the organisation since they deliver and support the strategy and drive the value chain. Knowledge Knowledge is expertise and skills acquired by a person through experience and education, involving the theoretical and/or practical understanding of a subject. While data are raw facts and information is data with context and perspective, knowledge is information with guidance/ability for action. Leaders The people who coordinate and balance the interests and activities of all who have a stake in the organisation. Management System The framework of processes, related performance/result indicators and process management and improvement systems used to ensure that the organisation can fulfill its Mission and Vision. Mission A statement that describes the purpose or raison dtre of an organisation, confirmed by its stakeholders. Mobility The willingness and capability of people to change their job or the working location. Organisational Agility The ability to respond and adapt, in a timely way, to an emerging threat or

opportunity. Partner An external party the organisation strategically chooses to work with, to achieve common objectives and sustained mutual benefit. Partnership A durable working relationship between the organisation and partners, creating and sharing added value for both parties. Partnerships can be formed e.g. with suppliers, distributors, educational bodies or customers. Strategic partnerships support the strategic objectives of the organisation in a particular way.

People All individuals employed by the organisation (full time, part-time, including volunteers), including leaders at all levels. Perception The opinion stakeholders have of the organisation.

Stakeholder Person, group or organisation that has direct or indirect stake or interest in the organisation because it can either affect the organisation or be affected by it. Examples of external stake-holders are owners (shareholders), customers, suppliers, partners, government agencies and representatives of the community or the society. Examples for internal stakeholders are people or groups of people. Value Proposition The differentiating value the organisations products and services offer to customers.

Strategy A high level plan describing the tactics by which an organisation intends to achieve its mission and vision. Process A set of activities that interact with one another because the output from one activity becomes the input for another activity. Processes add value by transforming inputs into outputs, using resources.

Products Commercially distributed goods as a result of a fabrication, manufacturing, or production process that passes through a distribution channel before being consumed or used. In a broad sense, products include a wide range of goods, from commodities to complex installations such as facilities, plants or factories. Society The social infrastructure outside the organisation that can be affected by the organisation. Values Operating philosophies or principles that guide an organisations internal conduct as well as its relationship with the external world. Values provide guidance for people on what is good or desirable and what is not. They exert major influence on the behaviour of individuals and teams and serve as broad guidelines in all situations. Vision Description of what the organisation is attempting to achieve in the long-term future. It is intended to serve as a clear guide for choosing current and future courses of action and, along with the mission, it is the basis for strategies and policies.