EFQM User Guide

Common Approaches – Large Private Sector Organisations

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EFQM Shares what works
For the past twenty years we have shared what works between our member organisations as a
way to help them implement their strategies: a mission which is as important as ever.

Through our network of members comprising private and public organisations of every size and
sector, many active around the world, EFQM applies its know-how and extracts outstanding
approaches by engaging with executives and front-line managers.

About this document

The EFQM User Guides are designed to help member organisations by giving examples of common
approaches, techniques and methods which support the practical deployment of the EFQM
Excellence Model. We have developed them in response to feedback from a number of our
members; using their knowledge and experience to identify approaches commonly used within
our member organisations.

The EFQM Excellence Model is non-prescriptive and there are many different approaches that can
help you on your journey towards excellence – the challenge is finding the one that works best
within your organisation. The aim of this guide is to give you a number of ideas to help inspire,
based on the experience of others.

This document is not intended to be a “definitive version” or to describe all the approaches
possible within this area. This document will be adapted and updated to incorporate new ideas
and learning as EFQM continues to share what works.

This document is in line with

This document is only for use within the EFQM membership.

© 2010 EFQM

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Contents

Introduction ............................................................................................................... 3
Enabler Map Layout ................................................................................................... 3
Leadership.................................................................................................................. 4
Strategy...................................................................................................................... 9
People ...................................................................................................................... 13
Partnerships & Resources ........................................................................................ 19
Processes, Products & Services ................................................................................ 26
The EFQM Excellence Model 2010 ........................................................................... 32
Summary of Changes to the Enablers in the 2010 Model ......................................... 33
Further information and feedback ........................................................................... 34
Improving this guide ................................................................................................ 34
Get involved ............................................................................................................. 34
Contributions ........................................................................................................... 34

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Introduction
The EFQM Excellence Model is designed to be a non-prescriptive framework that can be used to
gain a holistic view of any organisation, regardless of size, sector or maturity. During the
numerous workshops we held, the Core Team that helped to develop the 2010 revision of the
Excellence Model identified a number of issues that, whilst relevant to specific groups of members,
were not applicable to all. It was agreed that the best way to manage these issues was to develop
“User Guides”, targeted at specific groups of members, giving examples of common approaches,
standards and other relevant practices.

This guide is written specifically for large private sector organisations. The intention is to give
widely used approaches and practices that are relevant to these members for each of the Enabler
sub-criterion to generate a clearer understanding of how they could be applied in practice. These
are NOT intended to be best practices, found within a specific organisation or industry, nor is this
list intended to be used in a prescriptive manner.

The EFQM is a membership organisation; the knowledge, experience, suggestions and

contributions of the members are key to creating and maintaining a vibrant network. This
document is therefore not intended to be a “definitive version” and will be adapted and updated
to incorporate new ideas and learning.

Enabler Map Layout

The approaches have been described in an “enabler map” format, with the title, a brief description,
some notes on deployment and the links we would commonly find. Again, these links are not
definitive and will depend on how the approach is deployed within an individual organisation.

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 1. Leadership

Leadership
Definition
Excellent organisations 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
organisation to anticipate and react in a timely manner to ensure the ongoing success of the
organisation.

1a. Leaders develop the mission, vision, values and ethics and act as role models

Approach Description Deployment Links Results

Setting the The approach for Most commonly, the The vision, mission People’s
Vision, Mission & defining the “reason vision, mission and and values should understanding of the
Values d’etre” for the values are developed underpin the Vision, Mission &
organisation; the by the management organisation’s strategy Values, which can
reason it exists, team. In subsidiaries, (2c & 2d). Commonly demonstrate the
supported by the or operating units, it is this would be effectiveness of
values and ethics that commonly derived communicated to communications, is
will enable this. from the vision & internal (1e & 3d) and often included in the
mission of the group. relevant external (1c Employee Survey
& 1e) stakeholders. (7a).
Defining & The approach for This is often expressed It would be common Organisational
Developing the defining the desired in a “Code of to see links between culture may affect
Organisation’s organisational culture, Conduct” or set of this approach, the results in different
Culture specifically with Values. The leaders approach to creating a ways. Most
respect to the role within any culture of excellence commonly, results
leaders play in setting organisation play a (1d) and the people would be presented
the ethical standards. key role in brining management in People Results (7)
these to life. approaches (3). but there could be
links to the Key
Performance
Indicators (9b) and
Key Outcomes (9a).
Defining & The behaviours & In addition to the There may be links There may be
Reviewing competencies, process for defining between the appraisal questions in the
Leadership normally aligned to these, the process for the People Survey to
Behaviours the Vision, Mission organisation needs to company’s leaders review the
and Values, which the develop a process that and those used for the effectiveness,
management team enables performance remaining people (3b). presented in 7a.
need to display and of individuals to be
role model to ensure evaluated, reviewed
the ongoing success of and improved.
the organisation.
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360 Appraisal The process for The deployment of In most cases, this Results to measure
gathering feedback this approach should would link back to the the process itself,
from senior managers, be explained in terms organisations Vision & such as the number
colleagues, peers and of the organisation’s Values (1a) and the of managers
direct reports to definition of leadership behaviours involved, could
evaluate an individual “leadership”. (1a). There may also appear in 7b. The
manager’s be links to the effectiveness could
performance. appraisal process (3b). be linked to
employee motivation
or retention rates.

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1. Leadership

1b. Leaders define, monitor, review and drive the improvement of the organisation’s
management system and performance.

Approach Description Deployment Links Results

Balanced Credited to Kaplan & Commonly, this tool is The Balanced The concept of the
Scorecard (BSC) Norton, the Balanced used by the Scorecard should be Balanced Scorecard
Scorecard is a Management Team to aligned with the aligns well with the
technique for review progress company strategy (2c) EFQM results areas
developing a set of against strategy. and the key strategic and it is possible for
strategic measures to Often “traffic lights” objectives (2d). Data the results included
monitor performance, are used to represent collection and analysis in the scorecard to
aligned to the needs the current status. processes, including be in any of the
of different Measures on the assuring the accuracy results sub-criteria.
stakeholder groups. scorecard may be of the data, may be If used as a tool for
composites of KPIs, described in 4e. communicating
enabling a progress against key
comprehensive objectives, there
overview to be could be questions in
obtained from a small the employee survey
number of measures. (7a).
Management In most companies, The frequency and The Management One aspect that
Board Meetings the Management agenda of these Reporting processes would demonstrate
Board will meet on a meetings will depend will be linked to the the effectiveness of
regular basis to review on the nature of the strategic objectives Board decision
progress against the business. (2d). There will making would be the
key objectives defined commonly be links to ability to identify
in the strategy. the data management appropriate remedial
(4e), financial actions when key
reporting (4b) and results are not on-
process management target.
(5a) approaches.
Management In large organisations, The coordination and There should be clear The overall
System it is common for a synchronisation of the links with the effectiveness of the
combination of individual approaches processes for Management System
approaches and and processes can be developing and is normally
processes to form the crucial to enable the deploying the determined by the
Management System. Management Team to strategic objectives organisation’s ability
This is sometimes clearly understand (2c & 2d). The to detect and react
called an “Integrated how the organisation processes for collating to events that will
Management System” is performing against and ensuring the impact, positively or
(see 4e). the targets and integrity of the data negatively, on their
objectives it has been may be described in strategic objective.
set. 4e. This understanding is
relevant is all result
areas.

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 1. Leadership

1c. Leaders engage with customers, partners and representatives of society

Approach Description Deployment Links Results

Executive The process of The level of the How a company Performance
Sponsorship establishing regular contacts will depend defines its “key Indicators could
contact with senior on the size of the 2 customers” and measure the number
management in key companies involved “strategic of contacts of senior
customers and but often in business partnerships” may be management with
partners. to business defined by their key customers and
relationships regular strategic objectives partners. The
meetings are (2d) or within the effectiveness of an
established by the customer Executive
Board to review the segmentation (5c) or Sponsorship program
relationship at a partnership strategy could be reflected in
strategic level. (4a). Customer Perception
(6a), particularly for
surveys targeted at
decision makers, or
customer retention
rates (6b). There may
also be society
perception measures
(8a).
Sustainability Externally published The content, format The links will depend The effectiveness of
Report document that details and circulation of the on the content of the the Sustainability
the company’s report will depend on report but the GRI Report in
progress against key the nature of the criteria potentially communicating
financial, business. Common covers parts of all 4 activities may be
environmental and reporting frameworks results criteria, whilst monitored through a
societal strategies. or references are the the UN Global perception study
Global Reporting Compact focuses on (8a). External
Initiative (GRI) and the aspects of 7, 8 and 9. recognition may be
UN Global Compact. presented in 8b.

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1. Leadership

1d. Leaders reinforce a culture of excellence with the organisation’s people

Approach Description Deployment Links Results

EFQM Adopting and As this is part of the The output of an Performance
Excellence training leaders in leadership criterion, EFQM Assessment Indicators could
Model the use of the EFQM the deployment can be used as an measure EFQM
Excellence Model is would have to input to the planning training efforts for
one way of personally and process (2b). There leaders, e.g. the
establishing and actively involve may also be links to number of training
reinforcing a culture leaders to be involving people in hours per leader.
of excellence. relevant here. improvement (3c). Some companies
include EFQM
assessment scores
as a key
performance
indicator (9b).
External recognition
from EFQM may
also be presented as
a society
performance
indicator (8b).
Internal Leaders create and As part of role There may be links to Results in the
trainings deliver training for modelling, leaders involving people (3a, employee survey
people in their share their 3c) and could be links (7a) and
organisation on knowledge and back to leaders’ role performance
topics related to experience of topics modelling behaviours indicators like
excellence to support relating to excellence (1a). participation rates
the development of a with people, whether or training hours
“culture of through formal (7b) could be used
excellence” training or other to review this
channels. approach.
External To support the Benchmarking and There may be links to Relevant
Benchmarking development of the comparisons can be strategy and market benchmark data
organisation, leaders made using a number research (2a), should be used to
work proactively on of different channels, understanding put the
benchmarking and including surveys, internal performance performance and
comparisons with market research, and capabilities (2b) perception data
other organisations networks, site visits, and the involvement within the context
to understand etc. The focus should of people (3a, 3c). of the external
capabilities, be on the environment of the
opportunities and involvement of organisation.
developments in leaders in
their external establishing,
environment. encouraging &
identifying relevant
benchmarks and
ensuring this learning
is used to benefit the
organisation.

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 1. Leadership

1e. Leaders ensure that the organisation is flexible and manages change effectively

Approach Description Deployment Links Results

Annual General In large companies, This approach will The items on the AGM The effectiveness of
Meeting (AGM) the AGM is an only apply when there agenda are normally the AGM in
opportunity for the are external determined by the communicating
Board to shareholders and the strategic planning progress to key
communicate plans scope of the process (criterion 2). stakeholders could
and gain support from assessment is the be measured
shareholders, whole company. through perception
commonly based on a surveys (8a) or,
voting system. where applicable,
the share price (9a).
Annual “Kick Off” The process used by It is common practice This event should be Performance
Event leadership for to have an annual part of the overall Indicators could
communicating the event where the plans communications measure the
overall strategy or and objectives are strategy (3d). efficiency of the
annual objectives to communicated communication
people in the beyond senior process, e.g. the
organisation. management. number of
communication
channels or
resources used for
communication. It is
common to see
perception surveys
conducted at the end
of these meetings to
check messages have
been effectively
communicated.
Tracking Change The process used to Depending on the The specific links will The efficiency of the
Programs determine the culture, change depend on the type of change programs are
progress and required and change being commonly measured
effectiveness of organisation, change delivered. For using the
change programs programs can be example, achievement of key
initiated. centrally implemented implementing a new goals within agreed
or coordinated via CRM system may have timescales (project
local deployment links to people milestones). The
teams. training (3b), effectiveness should
technology (4d), relate to the
product marketing achievement of
(5c), service delivery specified strategic
(5d) and customer outcomes, which
relationship could appear in any
management (5e). of the results sub-
criteria.

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2. Strategy

Strategy
Definition
Excellent organisations implement their mission and vision by developing a stakeholder focused
strategy. Policies, plans, objectives and processes are developed and deployed to deliver the
strategy.

2a. Strategy is based on understanding the needs and expectations of both stakeholders and the
external environment

Approach Description Deployment Links Results

Market Research The process for Market research is There may be links to Information on
understanding commonly conducted strategic partners (4a), competitor activities
rd
developments, by external 3 parties. knowledge may provide relevant
activity, opportunities The process for management benchmark data,
and threats within the analysing, approaches (4e), specifically for
current or desired understanding and research and customer processes
market place. interpreting this data development (5b). (6b) and key
within the company processes (9b).
would normally be Market share
described here. information is usually
presented as a key
outcome (9a).
Legal & The process for This exercise is Depending on the As mentioned
Regulatory understanding any normally conducted type of legislation or previously, the
Compliance changes within within the legal regulation, there may results used to
relevant legislation or department, although be links to the monitor legal &
regulations which may also involve Management System regulatory
need to be adopted. operational (1b), People compliance will
specialists. Where Management (3a), depend on the
there is strong Financial Compliance sector. However,
regulation, there is (4b), Buildings, overall performance
often a dedicated equipment & could be considered
liaison team. Senior environment (4c) and as a Key Performance
management may also Process Management Indicator (9b).
be involved in this (5a).
process (1c).
PESTEL analysis The PESTEL is an The PESTEL analysis Information gathered The effectiveness of
analysis of the provides a structured by a PESTEL analysis PESTEL planning
external environment approach to collating can be used for could be linked to
of an organisation and and understanding preparing a SWOT performance in the
considers Political, information regarding analysis and a Outcomes (9b)
Economical, Social, the organisation’s scenario planning (2c).
Technical, external environment.
Environmental and
Legal topics.

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 2. Strategy

2b. Strategy is based on understanding internal performance and capabilities

Approach Description Deployment Links Results

EFQM The self-assessment The assessment can The application of Some companies
Assessment process will identify be conducted the EFQM Excellence include EFQM
the key strengths and internally (self Model can be used as assessment scores
areas for assessment) or an approach to as a key
improvement of the externally. Although it creating a culture of performance
company. The focus may highlight some excellence (1d). indicator (9b).
for the assessment is risks, this process is There may also be External recognition
normally on how not designed to links to involving from EFQM may
effectively the identify external
people in also be presented as
organisation is threats or
improvements (3c). a society
deploying current opportunities.
performance
strategy and plans.
indicator (8b).
Balanced The BSC and its The BSC can be used The application of the The fulfilment level
Scorecard (BSC) indicators with related to track progress BSC can be used as of action plans and
and related observation limits against action plans, part of the the number of KPIs
action plans support the giving an insight into organisation’s from the BSC, which
organisation in current performance management system are within the
understanding strong levels. Based on the (1b) an approach to targeted
and weak parts of the review of creating a culture of performance levels,
organisation. Such performance excellence (1d). could be presented
information can be measures, activity in 9b.
used as strategy input plans can be used to
to improve weak areas increase
of execution. organisational
capabilities and
highlight areas for
improvement.

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2. Strategy

2c. Strategy and supporting policies are developed, reviewed and updated to ensure economic,
societal and ecological sustainability

Approach Description Deployment Links Results

SWOT Analysis A technique for The commonly applied If the approach is The effectiveness of
defining and balancing method is to applied as described, the SWOT Analysis
the comparative determine the the internal could be linked to
“Strengths”, “Strengths” and perspective is performance in the
“Weaknesses”, “Weaknesses” from determined by the Key Outcomes (9a).
“Opportunities” and the internal processes in 2b and
“Threats” facing the perspective and the the external
company. “Opportunities” and perspective in 2a.
“Threats” from the
external perspective.
Scenario Planning An approach for Scenario planning Scenario planning is Performance
determining different allows organisations normally based on Indicators could
future scenarios and to identify possible information gathered measure risk
risks that the risks, set objectives from outside the management
organisation may and milestones or organisation (2a) and processes, e.g. the
encounter when “early warning” on current number of risks that
deploying their indicators. This is performance are considered or
strategy. widely used when capabilities (2b). resources used to
developing strategies These planned conduct risk
to enable effective scenarios often form analyses. The
planning, commonly in the basis for risk effectiveness of
the form of “best management scenario planning
case”, “Worst case” strategies and could be linked to
and “most likely”. business continuity performance in the
plans. Key Outcomes (9a)
Hoshin planning Hoshin planning is a Based on Hoshin If the approach is The effectiveness of
method for strategic planning strategic applied as described, Hoshin planning
goals and strategic goals can be shared the internal could be linked to
planning and base on and communicate to perspective is performance in the
the Deming Wheel all leaders and determined by the Key Outcomes (9a)
(Plan-Do-Check-Act). organisational processes in 2b, 2d, 3c
Hoshin planning partners. and 5a.
create goals, choose By involving all leaders
control points in the planning cycle
(measurable the ownership to
milestones), and link achieve the goals can
daily control activities increase. A
to company strategy. combination with a
target setting process
and target review
process is
recommended.

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 2. Strategy

2d. Strategy and supporting policies are communicated and deployed through plans, processes
and objectives

Approach Description Deployment Links Results

Strategy Mapping Credited to Kaplan & Strategy Maps are There should be links Depending on the
Norton, this method commonly used as a to the measures used strategic objectives,
enables the strategy communication tool; by the management the results defined in
of an organisation to often with more team to review the strategy map
be graphically detailed versions for progress (1b). could appear in any
depicted, aligned to management and of the 8 results sub-
different stakeholder simpler versions which criteria.
perspectives. are used to support
general
communications.
Objectives An approach to ensure One technique used is This may be linked to The efficiency of the
Cascade the alignment of to start with a high leadership culture approach could be
personal & team level objective at the (1a), individual determined by
objectives throughout top management and objectives setting and measuring the
the organisation. progressively break appraisal (3b) and number of people
this down into internal with set objectives
individual objectives communication (3d). (7b). Their
within functional understanding of
stream or policy and strategy
departments. could be determined
through questions in
an employee survey
(7a). Ultimately, the
effectiveness of the
cascade will be
determined by the
achievement of the
strategic objectives.
Target Strategy and Target agreements This may be linked to The effectiveness of
agreements and supporting policies and related incentives individual objectives target agreements
incentives can be linked to can be negotiated and setting and appraisal could be linked to
relevant incentive or agreed at individual or (3b) and the performance
target agreements. team level, were remuneration strategy measures in the
applicable. (3e). result criterions 7b
and 9b. Perception
measures relating to
the process could be
included in the
employee survey
(7a).

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3. People

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

3a. People plans support the organisation's strategy

Approach Description Deployment Links Results

Employee A method for The basic concept is There are commonly Performance
Engagement determining how that people may be links to the Indicators could
actively engaged, satisfied but are not approaches adopted measure the number
rather than necessarily for involving people in of people involved in
“satisfied”, people contributing to their improvements (3c) improvement
are. Although the full capacity. and internal projects. The results
concept was originally Engagement seeks to communications (3d). from the employee
developed by Gallup, measure how actively Some companies look survey are presented
most research involved they are in at establishing links in 7a. Response
companies provide a contributing to the between employee, rates for the survey
similar service. ongoing success of the customer and key tend to be included
organisation. results. in 7b.
rd
Recruitment The processes used With increasing If 3 parties are Common measures
Process for attracting, mobility, the involved, there may around the
evaluating and challenges of be links to 4a. There recruitment process
selecting potential attracting new may also be links to are time to recruit,
employees. employees have the remuneration & number of
changed. Many benefits policies (4e). applications, cost of
rd
companies use a 3 For some companies, recruitment, etc.
party to support this the external image of These are often
process. the organisation (8a) segmented between
is increasingly internal & external
important. applications.
Succession The approach used by Succession plans help This may link to the Performance
Planning the company to to ensure a smooth competency Indicators could
identify potential transition. In some management measure the effort to
successors for key cases, an “immediate” approach (3b). This develop a competent
roles within an and a “long term” may also link to the successor who could
organisation. replacement may be business continuity act for his/her
identified. Ensuring planning process. The leader. The
these plans are effectiveness of the effectiveness could
regularly reviewed is a succession planning be measured with
key consideration for process is often linked the number of key
effective deployment. to recruitment leaders who have a
measures. competent successor
assigned (target
100%). The cost and
time to fill
management roles
are normally reduced
when there is an
effective succession
planning process.

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 3. People

3a. People plans support the organisation's strategy (Continued)

Approach Description Deployment Links Results

Talent The approach used by Talent management This may link to the The effectiveness of
Management the organisation to activities can help to competency the talent
identify, develop and ensure a future- management management process
retain potential talent focused people approach (3b). This is often linked to
for key roles within an management may also link to the recruitment or
organisation. approach. In some strategy planning retention measures
cases, talents can also process (2b). (7b).
be identified in
connection with
succession planning or
replacement activities.
Ensuring that these
plans are regularly
reviewed and updated
is a key consideration
for an effective
deployment.

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3. People

3b. People's knowledge and abilities are developed

Approach Description Deployment Links Results

Appraisal Process The process for Objectives can be set It is good practice to Performance
assessing an at individual or team see clear alignment Indicators could
individual’s level, depending on between the overall measure the share of
performance, usually the type of business objectives of the people (%) who had
against a set of and, in some cases, company and an appraisal meeting
objectives or local legislation. This individual objectives. with their leader, as
competencies. appraisal may also be defined by the
used to determine process. The
elements of effectiveness of the
performance related process is often
pay, promotion or measured through
salary increases. questions in the
people survey, which
would be presented
in 7a.
Personal The process for In some companies, There should be links Performance
Development agreeing the training this process is aligned to the overall HR Indicators could
and development with the appraisal strategy to ensure measure the share of
needs of an individual, process; in others they people’s people (%) who had
normally against a set are separate. competencies are a development
of agreed being developed in meeting with their
competencies for the line with the needs of leader, in line with
role. the organisation. the defined process.
The effectiveness of
the process is often
measured through
questions in the
people survey, which
would be presented
in 7a.
Management The process for This can be applied at This may be linked to The efficiency and
Development developing people many levels in a the succession effectiveness could
Programs within an organisation company, depending planning process (3a), be measured
specifically for on their specific leadership through the number
management roles in requirements. It may competencies (1a) and of internal
the future. focus on “Talent should form part of promotions to
Management”, “high the overall HR management
potentials” but could strategy. positions,
be applied to develop management
front line staff for turnover rates or
supervisory roles. other people
indicators (7b).
Investors in An external As with ISO standards, The most common It is possible to
People (IiP) certification, based on the scope of the link is between the measure the
an assessment of the certification is personal development effectiveness of the
company’s training & determined by the and training approach through
development company. Although approaches. In some metrics like
processes. the standard was cases, IiP certification employee skill levels,
originally launched in is used to help attract productivity and
the UK, it is and retain employees retention (7b).
increasingly used in (3a).
other European
countries.

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 3. People

3c. People are aligned, involved and empowered

Approach Description Deployment Links Results

Process The approach to To ensure effective This should link to the The number of
Improvement actively involving deployment, there process improvement people participating
Teams process operators or may be training methodology adopted in improvement
“front line staff” in courses or expert and described in 5a. teams (7b) and
process improvement facilitators to guide number of
activities. people through the improvements
process. Teams may implemented (9b)
be cross-functional, could be used to
depending on the indicate the
improvement topic. effectiveness of
Improvement Teams.
5S 5S is the name of a Although most This may link to the From a health &
workplace commonly used within approaches taken for safety perspective,
organization the manufacturing forming process accidents in the
methodology that environment, the improvement teams, workplace are often
uses a list of five same techniques have health & safety (3e) or presented in people
Japanese words which been used within the process management performance
start with the letter office environment in & improvement (5a). indicators (7b). The
“S” (commonly a number of increase process
translated as “Sort”, organisations. The efficiency could be
“Store”, “Shine”, focus is on monitored through
“Standardise” & empowering employee
“Sustain”, although employees to improve productivity (7b) or
there are some their workplace and process performance
variations). increase efficiency. (6b or 9b).
Objectives A process used for The process can work The natural link “back” The efficiency of the
Cascade aligning all employee in either a traditional in the process is to the approach could be
objectives to the organisational output of the strategic determined by
strategic goals of the hierarchy or other planning process (2d). measuring the
organisation. structures, such as The common link number of people
matrix management. “forwards” is to the with set objectives
In theory, the high appraisal process (3b) (7b). Their
level objectives are and, where there is an understanding of
broken down into element of policy and strategy
increasing detail “performance related could be determined
throughout the pay”, the through questions in
organisation. If all remuneration strategy an employee survey
these tasks are (3e). (7a). Ultimately, the
achieved, the strategic effectiveness of the
objective will be cascade will be
achieved. determined by the
achievement of the
strategic objectives.
Employee A process for enabling When deploying a The “Reward & The satisfaction with
Suggestion employee’s to suggest suggestion scheme, Recognition” strategy the process can be
Schemes opportunities for the organisation of the organization is measured by a
improvement, should consider a often linked to the people survey (7a).
whether relating to structured process for benefits generated Other related
working conditions, encouraging from suggestions (3e). measures (e.g. value
products & services, contributions, of rewarded
processes or other determining which suggestions, total
activities. can be implemented and ratio) can be
and providing presented in 7b or
feedback. 9b.

16
3. People

3d. People communicate effectively throughout the organisation

Approach Description Deployment Links Results

Internal The overall process for The deployment will There is often a close Performance
Communications ensuring clear need to be based on link between internal Indicators could
channels of the needs and communications and measure the
communication within requirements of the the external efficiency of the
the company, both people. Consideration communications with internal
horizontally (e.g. should be given to stakeholders (1c or communication
between different ensuring two-way 2d) process, e.g. the
departments) and communication, number of
vertically (between enabling a genuine communication
leaders and non- dialogue and the channels or
leaders) transfer of resources used for
information between communication. The
different groups. effectiveness of
communications is
often assessed using
people surveys, the
results of which
would be relevant to
7a.
Electronic There are many The effective use, There may be links Measuring the
Communications options available to exploitation and between approaches efficiency and
Media (ECM) encourage management of these adopted here and effectiveness of the
communications and systems to enable a those in knowledge use of ECM will
networking through genuine two-way management (4e). depend on the
new technology, dialogue are a The approach may objectives set by the
including intranet, challenge for many also extend beyond organisation. These
blogs, social traditional, hierarchy the boundaries of the could be focused on
networking sites. based organisations. organisation, for improving internal
example to partners communications (7a)
(4a) or customers (5e). or creating a
dialogue with
customers or
partners to generate
new products and
services (6b or 9b).
Workers Council In many European Whilst this may be a There may be links to In many
countries, it is a legal legal requirement in HR Strategy organisations, the
requirement to have some countries, the development and effectiveness of
an elected “Workers way it is deployed review (3a), worker relations is
Council”, which meets within an organisation communication of measured through
regularly with will determine the changes (1e), the the number of days
management to extent to which this remuneration strategy lost to strike action.
discuss working forum provides an (3e), the working This is a lagging
practices and HR opportunity for environment and indicator. Leading
strategy. In pan- genuine dialogue health & safety (3e indicators could
European companies, between the people and / or 4c). include accident
there will normally be and the leaders. rates, complaints,
a “European Workers employee perception
Council”. ratings, etc.

17
 3. People

3e. People are rewarded, recognised and cared for

Approach Description Deployment Links Results

Reward & The overall approach The basic levels of The “Reward & The effectiveness
Benefits for developing and reward and benefits, benefits” strategy is could be measured
setting the total something called normally closely linked through metrics like
reward and benefits “total benefits to the recruitment employee turnover,
package for package”, offered will and retention time to recruit, etc.
employees to ensure normally be aligned to strategies (3a). For There is some debate
they have the the overall HR strategy some companies, they within the HR
appropriate number (3a). This may include are able to pay “below community about
of people, with the flexible working, home the market rate” and the usefulness of
required skills, to working, share still get high levels of survey data on this
achieve their options, bonus engagement and subject; most prefer
objectives. schemes, etc. retention because of to look at
the strong brand and performance
reputation of the measures relating to
company. Some attracting and
companies accept that retaining people to
people will work for review the
them for a few years effectiveness of
before moving on to these policies. This is
higher paid jobs based on the
elsewhere. All are assumption that no
valid approaches, if one will effectively
appropriately say “I get paid too
structured and much for what I do”
managed. in a survey.
Recognition The approach to Understanding what There may be links to The number of
appropriately motivates people and the overall reward and recognitions being
recognising the most encourages their benefits strategy, made could be used
active contributors. active contribution is although this is not to demonstrate how
key to developing always the case. widely the scheme is
effective approaches There are commonly being used. The
to ensure people’s links between effectiveness could
motivation and recognition be measured via
ongoing contribution approaches and questions in the
to the organisation. succession planning employee survey (7a)
Often, it is not solely (3a). or through metrics
financial gain. like improvements &
innovations generate
(7b), increased
productivity (7b), etc.
Salary A technique used to This method is There may be links to It is not common to
Benchmarking benchmark salaries commonly used within the recruitment and see average salary
and benefits packages major organisations, retention strategies data presented in 7b,
with the external supported by adopted (3a). although salary
market. organisations such as benchmark data is
the Hay Group. commonly used.
Health & Safety The approach adopted The approach adopted There are often links Accident rates are
Management to ensure people have will vary greatly back to legal or often presented in
a safe working depending on the regulatory compliance 7b. Questions
environment. nature of the (2a) and policies relating to health &
business. This may be relating to building & safety in the work
supported by material management place are also
ISO18001 certification. (4c). common in
employee surveys.

18
4. Partnerships & Resources

Partnerships & Resources

Definition
Excellent organisations plan and manage external partnerships, suppliers and internal resources
in order to support strategy and policies and the effective operation of processes.

4a. Partners and suppliers are managed for sustainable benefit

Approach Description Deployment Links Results

Supplier The process and In most companies, There should be links Supplier
Selection Criteria supporting policies there is a list of with the procurement performance could
used to identify “preferred suppliers” process (4b). In be reported in 9b,
“preferred suppliers”. for specific goods and companies with although they may
services. In some extended supply have a significant
companies, this may chains, supplier impact on other KPIs,
also be supported by management may be depending on the
supplier audits or a key issue within the nature of the
assessments. CSR policy and organisation.
reporting (1c).
Partnership The approach used to There is normally a Depending on the Partner performance
Management identify, establish, significant difference nature of the would normally be
develop and manage in they way that relationship, senior reported in 9b,
the relationship with partners and suppliers management on both although they may
partners. are managed. These sides may be involved have a significant
processes need to be (1c). impact on other KPIs.
clearly defined and
implemented.
Supplier Audits The approach uses The purchasing area, There may be links Supplier
supplier visits / audits often in cooperation with the procurement performance is
in a structured way to with the quality process (4b). In normally reported in
develop supplier management area, organisations with 9b, although they
relationships, share develop and support extended supply may have a
learning aspects and, the processes for chains, supplier significant impact on
where appropriate, conducting supplier management may be other KPIs,
ensure compliance audits and related a key issue within the depending on the
with relevant activities. CSR and purchasing nature of the
standards. policy and reporting organisation.
(1c).
Framework The approach is used These framework There are normally The performance of
Agreements to define the benefits agreements could be links with the partners and
for both sides within a applied to either procurement process suppliers is normally
clear, agreed and partners or suppliers, (4b). In organisations reported in 9b,
negotiated framework depending on the with extended supply although they may
of conditions and nature of the chains, supplier have a significant
arrangements. relationship and the management may be impact on other KPIs,
organisations a key issue within the depending on the
involved. CSR and purchasing nature of the
policy and reporting organisation.
(1c).

19
 4. Partnerships & Resources

4b. Finances are managed to secure sustained success

Approach Description Deployment Links Results

Budgeting The approach for The level to which There should be links Results would most
Process determining and budget allocations are between the commonly be
managing budgets, in cascaded within an budgeting process and presented in 9a and
line with the organisation should be the strategic planning 9b.
organisation’s described, along with process (2c and 2d) to
strategy. the process for ensure budgets are
agreeing and aligned to the
reviewing achievement of
performance. strategic objectives.
SOX Compliance The Sarbanes-Oxley If a company is listed As the Management There could be
Act was introduced in or cross-listed on the Board of the company measures relating to
2002 and applies to all NYSE, the SOX is responsible under the efficiency and
companies listed on legislation regarding the SOX legislation, effectiveness of SOX,
the New York Stock financial controls and one would expect to and other
Exchange. reporting applies see links with the compliance
throughout that overall management management
company. system (1b) and approaches,
stakeholder reporting presented in 9b. This
(1c). There may also may also contribute
be links to the overall to external
process management perception of the
system (5a). organisation (8a).
Procurement The overall approach Deployment will There should be links The efficiency and
Process adopted by the depend on the rules to the supplier & effectiveness of the
company to adopted by the partnership procurement process
purchasing, including organisation and the management could be monitored
selecting suppliers and extent to which approaches (4a). through metrics such
ensuring budget budget allocations are Responsible as expenses, time to
holders adhere to deployed. The nature purchasing is order, stock levels,
these rules. of the business, length commonly a key issue etc. Normally, these
of supply chain and in the CSR strategy. would be found in
where materials are 9b. Depending on
sourced, will also add the nature of the
complexity. business, this may
have a significant
influence on the key
outcomes (9a).
Financial Auditing The approach for The are a number of The auditing and Leading financial
& Reporting ensuring the reliability standard practices in reporting approaches indicators will be
of financial reporting this area, including the will link to the overall presented in 9b;
and financial International Financial governance and financial outcomes in
management Reporting Standard external reporting 9a. The effectiveness
processes. (IFRS) and Institute of approaches (1b & 1c) of these processes
Internal Auditors (IIA) may have an impact
guidelines. on external
perception (8a).

20
4. Partnerships & Resources

4b. Finances are managed to secure sustained success (Continued)

Approach Description Deployment Links Results

Risk The approach focus on In combination with Normally there are Risk Assessment
Management assessing, determining business continuity links between the results can be
(ISO31000) and managing risks for management budgeting process and presented in 9b;
the organisation and activities, a business the strategic planning The effectiveness of
its business, which risk management process (2c and 2d) to these processes may
should be in line with process may avoid ensure that identified have an impact on
the organisation’s business interruptions risks are not likely to external perceptions
plans, partners and and fulfil stakeholder compromise strategic (8a) and insurance
strategy. expectations. business objectives. feedback and fees
(9b).

21
 4. Partnerships & Resources

4c. Buildings, equipment, materials and natural resources are managed in a sustainable way

Approach Description Deployment Links Results

Buildings Policy The approach the The number, size, There may be links to Where the
organisation adopts to location and function procurement and investment in
managing its property of buildings within an investment / properties is
portfolio, including organisation will divestment polices significant, there
decisions to buy or depend on the nature (4b). may be results
lease. of the business but, in presented in
many cases, effective criterion 9.
management of the Depending on the
property portfolio is nature of the
an important business, effective
consideration. use of space and
capacity planning
could be included as
a measure in 9b.
Facilities The approach to Within organisations There may be links to The efficiency of this
Management ensuring all buildings with multiple sites, health & safety (3e), approach could be
and workspaces are ensuring a consistent the working measured through
managed, ensuring approach to facilities environment (3e) and, expenses (9b), utility
employees have a safe management can be a if outsourced, consumption (8b),
working environment challenge. In many partners (4a). etc. The
with the facilities organisations, effectiveness could
required to do their especially where be measured
work effectively and buildings are rented, through perception
efficiently. the management of surveys (7a or 8a) or
facilities is contracted accident rates (7b),
rd
to a 3 party. depending on the
approaches adopted.
ISO14001 / ISO14001 & ISO16001 As with all ISO The results relating to The efficiency and
ISO16001 certification relate to standards, a company an organisation’s effectiveness
certification an organisation’s can choose the scope environmental measures are
environmental and of the certification to performance would be normally presented
energy management suit their needs. This presented in 8b. in 8a and 8b. Where
systems, respectively. scope will determine Commonly, there these approaches are
the extent to which would also be customer facing,
the management perception results there could be
system is deployed presented in 8a, some questions included in
within the of which could be customer perception
organisation. linked to the ISO14001 surveys (6a).
and / or ISO16001
certification.
ISO27001 ISO27001 certification One of the aspects Depending on the The measures
certification relates to an covered by the nature of the relating to the
organisation ISO27001 standard is business, there may efficiency and
Information Security the physical security be strong links effectiveness of
Management System. of buildings and assets between the compliance
within an approaches adopted management
organisation. to managing physical approaches are
security and data normally presented
security (4e). in 9b. This may also
contribute to
external perception
of the organisation
(8a).

22
4. Partnerships & Resources

4c. Buildings, equipment, materials and natural resources are managed in a sustainable way
(Continued)

Approach Description Deployment Links Results

Water and The approach to These approaches can This could link to the The measures
Carbon Footprint effectively monitoring be developed and approaches for relating to the
and managing the deployed at a site, Environmental and efficiency and
organisation’s business unit or Energy Management effectiveness of
environmental impact, organisation wide Systems (4c), Product environmental
specifically in relation level, depending on and Service aspects in 8b.
to water usage and the nature of the development and This may also
CO2 emissions. organisation and the delivery (5b & 5d), contribute to
CSR strategy. Sustainability external perception
Reporting (1c). of the organisation,
presented as image
survey results in 8a.

23
 4. Partnerships & Resources

4d. Technology is managed to support the delivery of strategy

Approach Description Deployment Links Results

rd
IT Outsourcing Using a 3 party to The extent to which IT This approach should Partner performance
provide IT services are be aligned to the IT results are normally
maintenance, support outsourced will strategy of the presented in 9b, e.g.
or other services. depend on the organisation. as compliance with
strategy adopted by agreed
the organisation. Service Level
Agreements or cost
savings.
Technology The approach to Normally developed This approach can be Related results (e.g.
Matrix monitor the within the area aligned with the average age,
technologies currently responsible for overall building and maintenance
used and manage managing ICT in the machine management frequencies etc.) are
their age, usage, organisation, a / maintenance system normally presented
service / maintenance Technology Matrix can (4c), Budgeting and in 9b. Energy
frequency etc. be used to assist in Planning (4b) or consumption of key
managing the overall product & service machines can be
ICT portfolio. delivery processes (5d presented in 8b.
& 5e).
Knowledge The approach to share The extent to which This approach could Results can be
Sharing and and transfer knowledge sharing be aligned with the presented via
Transfer with knowledge from and transfer is partnership strategy questions in a
Technology technology partners. adapted by the (4a), people suitable
Partners organisation should be competencies (3b) or people/employee
guided by the product development survey in 7a or as
strategic direction and (5b), depending on indirect measures
the partnership the nature of the (e.g. knowledge
strategy. partnerships. workshop
participants or
frequencies etc.) 7b.
Technology The approach used to In combination with There should be clear Performance
Scouting identify and an implemented links between the improvements could
understand the technology matrix the strategic direction and be presented in 9b, if
potential of new and scouting approach can the types of related to process
emerging be deployed as a part technology being performance, or 7b,
technologies. of the budgeting investigated to ensure if related to
and/or project they are aligned with employee
development process the future needs of productivity.
for products and the organisation. This Improved energy
processes. could be an input to consumption of new
the planning process technologies
(2a & 2b). adopted could be
relevant to 8b.

24
4. Partnerships & Resources

4e. Information and knowledge are managed to support effective decision making and to build
the organisational capability

Approach Description Deployment Links Results

Knowledge The approach to In large organisations, There may be links to Performance
Management capture information the capture and people skills and Indicators could
System and transforms this dissemination of competencies (3b), measure efforts and
into knowledge that information is often improvement resources related to
can be shared supported by a activities (3c) managing knowledge
between different knowledge transfer between
people within, and management system, people, e.g. about
sometimes outside, such as an intranet. learnings from
the organisation. customer projects,
innovations
generated,
improvements
implemented, etc.
ISO27001 ISO27001 certification One of the aspects In many industries, Depending on the
certification relates to an covered by the the accuracy and nature of the
organisation ISO27001 standard is reliability of the data business, the impact
Information Security the data security, within the systems is of “clean data” on a
Management System. availability and dependent on the business could be
integrity, from both an skills, training and tracked through
internal and external awareness of the more efficient
perspective. people (3b). processes (9b), fewer
errors (9b), fewer
complaints (6b).
Integrated An Integrated The standards The links will depend Related measures
Management Management System encompassed by the on the standards (e.g. intranet hits,
System (IMS) is normally used to IMS will be covered by the IMS audit results etc.) of
collate all the determined by the but may include such approach can
information, nature of the process management be presented in 9b.
processes and organisation in (5a), environmental Relevant questions in
procedures relating to question. It may management (4c), an employee survey
any relevant standards include ISO standards, energy management could be used to
in a single system. as well as legal or (4c), information monitor the
regulatory security management effectiveness (7a).
requirements. The (4c), SOX compliance Indirect results and
approach is often (4b), health & safety measures (e.g.
supported a web- (3e). participants in
based system, where related IMS training
contents and related activities) could be
documents can be presented in 7b.
displayed and linked
together.

25
 5. Processes, Products & Services

Processes, Products & Services

Definition
Excellent organisations design, manage and improve processes to generate increasing value for,
customers and other stakeholders.

5a. Processes are designed, managed to optimise stakeholder value

Approach Description Deployment Links Results

ISO9001 Commonly used to The extent to which There may be links to Depending on the
certification document and this enables the 1b (the organisation’s processes within the
manage process. The organisation to management system), scope of the
“PDCA” cycle aligns “Analyse, categorise 2d (the framework of certification,
well with RADAR; both and prioritise their key processes), 3c performance
are looking at end to end processes (involving people in indicators could
systematic as part of the overall improvements) and 5e appear in 6b, 7b, 8b
improvement of management system” (monitoring the or 9b. The
processes based on will depend on the customer experience). effectiveness of the
reviewing their scope of the system is usually
effectiveness and certification and how determined through
efficiency. effectively the improved customer
ISO9000 Management satisfaction (6a),
System has been improved
implemented. productivity (7b or
9b), reduced defects
(9b) or reduced costs
(9b).
Lean / Six Sigma Although widely used Tools like DMAIC align There may be links to The impact of
in manufacturing closely to RADAR; 1e (organisational improvement
processes, the establishing an culture), 2d (aligning projects should be
techniques, especially improvement target, with strategic visible in process
“Lean Sigma”, are now analysing and objectives), 3b indicators (6b, 7b, 8b
common place in understanding the (training programs), 3c or 9b, depending on
other industries, performance (involving people in the project) and may
including service dynamics, identifying improvements) and 5e also be reflected in
sector. improvement options, (monitoring the perception measures
structured customer experience). (6a, 7a or 8a).
implementation and Ultimately, the
determining the successfully
benefits generated. implemented
How and where these program should be
tools are used will reflected in the key
depend on the nature outcomes of the
of the business. organisation (9a).
Value stream Value Stream Mapping Often utilized to There are commonly Related measures
mapping (VSM) is an approach used to analyze and structure links to training (e.g. throughput time
maximise the value processes, the VSM initiatives (3b), before vs. after,
added through a method can be used in improvement amount of analyzed
process. combination with activities (3c) and processes, etc.) of
other approaches, other process such approach can
such as the 0-Defect- management topics be presented in 9b.
principle, to combine (5a)
related findings with
both approaches.

26
5. Processes, Products & Services

5a. Processes are designed, managed to optimise stakeholder value (Continued)

Approach Description Deployment Links Results

Integrated The approach address In organisations the There are links to Related measures
Management the combination of approach is often training initiatives (e.g. intranet hits,
System (IMS) management system supported by an (3b), improvement audit results etc.) of
related intranet based activities (3c) and such approach can
documentation and systems where process management be presented in 9b.
information. By doing contents and related topics (5a) Relevant questions in
so synergies between documents can be an employee survey
different systems can displayed and linked could be used to
be used (ISO9001, together. If deployed monitor the
ISO14001, ISO18001, at a strategic level, effectiveness (7a).
ISO27001, etc). this approach could Indirect results and
also appear in 1b. measures (e.g.
participants in
related IMS training
activities) could be
presented in 7b.
0-Defect The 0-Defect-Principle Sometimes in There are links to Related measures
is an approach to combination with Six training initiatives (e.g. scrap rates,
reduce waste and Sigma, the 0-Defect (3b), improvement ppm-values, six
costs along the process and its activities (3c) and sigma levels before
processes in the process contributions process management vs. after, complaint
organisation. are organized in group topics (5a) ratio etc.) of such
work and task approach can be
orientation. An presented in 9b.
activity plan with
findings,
responsibilities and
targets support the
implementation of
such initiative.
APQC Process The PCF enables The PCF is a standard As the PCF provides a Relevant process
Classification organizations to framework of business standard framework performance data
Framework (PCF) understand their inner processes, which can that enables obtained through
workings from a be used in any comparisons to be this approach may be
horizontal process industry. The PCF does made across different presented in any of
viewpoint, rather than not list all processes industries, it can form the results criteria.
a vertical, functional within a specific part of the The effectiveness of
viewpoint. organization, and all Benchmarking the approach can be
the processes listed in Strategy (1d). It may determined by
the framework do not also be used in the improvements in
need to be present in strategic planning performance
every organization. process when review resulting from the
current organisational learning and
capabilities (2b). improvements
generated.

27
 5. Processes, Products & Services

5b. Products and Services are developed to create optimum value for customers

Approach Description Deployment Links Results

Research & The approach for Many large companies Sustainability issues, Typical measures
Development identifying and have dedicated such as material presented relating to
developing new Research & sourcing (4c), R&D include;
products and services. Development production techniques Number of new
facilities. How these (5d) and end of life products launched
teams work with other recycling and disposal (9b), Time to Market
stakeholders is a key (5e) may be taken into (9b), New Product
focus area in this account at this stage. Sales (9b), % Profit
criterion part. invested in R&D (9b)
Development of new
products and service
may well be carried
out in other parts of
the organisation.
Focus Groups Using customer focus The deployment of The links between 5b Perceptions gathered
groups to generate this approach will vary (product from Focus Groups
new ideas, test depending on the size development), 5c could be presented
products and gain and nature of the (product marketing), in 6a, although this
feedback directly. company concerned. 5d (product delivery) tends to be
The department and 5e (customer qualitative, rather
involved in managing relationship than quantitative
these groups will vary management) should research.
accordingly. be clearly defined.
Voice of the The approach VOC information can VOC techniques are If structured
customer (VOC) provides a structured be gathered using often used in Six perception data is
method of capturing surveys, focus groups, Sigma projects (5a). gathered, this could
and using customer complaints analysis or be presented in 6a.
feedback to drive other techniques. VOC Improvements
process improvement is often used to gather derived from VOC
or product feedback from data should have a
development. customers on a positive impact on
specific topic, as part customer
of an improvement performance (6b)
project. and customer
perception (6a)
results.
Warranty Chain WCM is a structured The Warranty Chain There are normally Improvements
Management process to use market Management links with the service derived from WCM
(WCM) and product feedback approach is often provision (5d) and should have a
to improve products implemented along complaints handling positive impact on
and services. with a structured (5e) processes. customer
service and complaint performance (6b)
handling process. and customer
perception (6a)
results.

28
5. Processes, Products & Services

5c. Products and Services are effectively promoted and marketed

Approach Description Deployment Links Results

Product All companies will Whatever the product There is usually a close Efficiency measures,
Marketing have a defined or service being working relationship such as time to
process for launching promoted, the target between product market, would
a new product, audience should be marketing, the supply normally be
including defining the clearly defined. The chain and the presented in 9b. The
target audience, most effective customer facing effectiveness
communicating the channels for reaching employees to ensure measures, such as
value proposition, this audience should the organisation can new product sales,
pricing and be identified and deliver the new brand awareness and
promotion. utilised accordingly. product. market share, are
more likely to be
presented in 9a.
Customer Value A Customer Value It is common for The CVP is commonly The effectiveness of
Proposition Proposition (CVP) is organisations to linked to the overall this approach is
the total benefits an define a distinct CVP brand and values of commonly measured
organisation promises for each product the organisation. through the
the customer will group or service they Once defined, the CVP purchase rates of
receive. This can help offer. The CVP is is used in product new products,
define the target often defined in terms marketing to help market penetration,
market for a specific of cost, availability, define the target customer loyalty,
product or service. range, service, market and effectively market share, etc.
efficiency, brand, etc. communicate the
benefits to new
customers.
The 4Ps of The 4Ps are defined as It is common for each The approach to the The effectiveness of
Marketing Product, Pricing, product group or 4Ps should be linked this approach is
Promotion and Place. service to have a to the strategic commonly measured
These 4 elements different positioning, objectives of the through the
need to be considered depending on organisation; the purchase rates of
and balanced when variables such as balance will vary new products,
bring a product to market maturity, depending on what market penetration,
market. product maturity, the organisation customer loyalty,
brand, customer wants to achieve. market share, etc.
strategy, etc. There may also be These maybe be
links to the marketing, presented in either
distribution or Customer Results or
customer service Key Results.
strategies.
Pricing Strategy The process by which The pricing strategy The pricing strategy The efficiency of this
a company defines can vary greatly from should be linked to process could be
how much it will company to company; the overall strategy of measured as part of
charge for its products market to market. the organisation. a “time to market”
and services. Simple example would There may be links to indicator (9b). The
be a “loss leader”, the brand strategy. effectiveness of the
with the product or approach adopted is
service being priced likely to have a direct
below the operating impact on
margin to attract new profitability and
customers, gain market share, both
market share or to of which are key
promote higher outcomes.
margin products and
services.

29
 5. Processes, Products & Services

5d. Products and Services are produced, delivered and managed

Approach Description Deployment Links Results

Supply Chain Managing the supply Depending on the In extended supply Measures regarding
Management chain to ensure the nature of the chains, there may be a the efficiency of the
effective delivery of company being number of partners & supply chain, such as
products and services assessed, the supply suppliers involved the cost, stock
to customers is crucial chain may extend (4a). There may also turnover levels, etc,
to any organisation. beyond the traditional be links to the CSR would normally be
boundaries of the strategy of the presented in 9b. The
organisation, both organisation (1c and / effectiveness may be
downstream and or 2c). reflected in customer
upstream. performance
indicators (6b) or
customer satisfaction
(6a).
Value-added VPS is a structured The VPS-success There may be links to Depending on the
Production approach to reduce factors represent a the Management scope of
Systems (VPS) waste both in structured approach System (1b), the deployment, process
technical and to value-adding, target setting performance
administrative incorporating simple approaches (2d), indicators may be
processes. Sustainable models to measure people management presented in 6b, 7b,
improvements your current VPS- and involvement (3b, 8b or 9b. Ultimately,
efficiency and quality level. A standardized 3c & 3d) and the the impact may be
can be achieved by VPS-activity- framework of key determined by
streamlining processes monitoring tool helps processes (5a). improved
according to the VPS- to derive appropriate performance in the
principles. The target- measures. Key Outcomes (9a).
vision is a production
with aligned and
optimized processes
with minimum of
waste. Standards
secure the
sustainability of
improvements.

30
5. Processes, Products & Services

5e. Customer relationships are managed and enhanced

Approach Description Deployment Links Results

Customer Most companies have When deploying a There should be links Relevant
Relationship developed a CRM CRM system, the into 5b (product performance
Management system to manage different types of user development) and 5c indicators should be
(CRM) their relationship with groups should to be (marketing). presented in 6b.
the customer; understood to ensure Some CRM systems
understanding current the system meets can be used to
product holdings, their needs. For monitor employee
keeping track of the example, where there productivity (7b). The
various contacts, are field based staff, effectiveness of CRM
identifying ensuring timely, approaches can be
opportunities for up- remote access may be measured through
or cross-selling, etc. an important customer perception
consideration. surveys in 6a.
Customer Contact Centres are How an organisation Training (3b), flexible Common
Contact Centres widespread in manages customer & remote working (3e) performance
customer service contacts will depend and technology (4d) indicators for the
industries and the on the nature of the are key to enabling efficiency of contact
issues and approaches business. The the modern contact centres include time
to managing approaches for centre. The overall to answer,
performance are managing this, and strategy will be abandoned call rates,
common. how they are defined in criterion 2. engaged tone rates
deployed, will depend Where services have (all 6b), average call
on the customer been outsourced, length, calls per FTE,
strategies adopted. there will be partners sales ratios (all 7b).
Outsourcing is (4a). Surveys can be used
common practice in a to determine the
number of industries, effectiveness from
with partners being the customer
used to manage either perspective (6a).
the customer Decisions about
enquiries or back where to locate
office processes. contact centres may
also be reflected in
society’s perception
(8a).
Customer Surveys are the most The frequency and The results of the Customer perception
Surveys common form of target audience of the customer survey can data is presented in
gathering perception survey should be be used to drive 6a.
of the customer clearly defined, in line process improvement
experience. with the market. It is (5a), product or
crucial to determine service improvements
the segmentation of (5b), review and
results and how the inform strategy (2b).
results will be used In most cases, the
during the survey will be run by
development stage to an external supplier
ensure the (4a).
information obtained
meets the needs of
the business.

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The EFQM Excellence Model 2010
The EFQM Excellence Model was reviewed and refined for 2010 using the following principles:
 It should be generic and applicable to all organisations; profit and not for profit, big and small,
simple and complex;
 Simplify the wording and ensure it is relevant to all activities and sectors;
 Focus on including emerging trends and topics;
 Use language targeted to managers, not EFQM Experts;
 Make the concepts and bullets action oriented;
 Build on the work done in 2005 on reviewing the Fundamental Concepts.

To achieve sustainable success, EFQM provides guidance through a set of three integrated
components:
 The Fundamental Concepts of Excellence: The underlying principles which are the essential
foundation of achieving sustainable excellence for any organisation.
 The EFQM Excellence Model: A framework to help organisations to convert the Fundamental
Concepts and RADAR thinking into practice.
 RADAR logic: A simple but powerful tool for driving systematic improvement in all areas of the
organisation.

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Summary of Changes to the Enablers in the 2010 Model
The key changes to the Enablers between the 2003 and 2010 versions of the Model are
summarised in the table below:

2010 version 2003 version Main shift in content

Leadership (1) Leadership 1a - ‘ethics’ is added as a facet of role modelling
1b – position the Leaders as the ‘drivers’ for performance and capability
development
1c – includes now the reasons for Leaders to engage with the
stakeholders and the need for transparency and to report back
1d – now the ‘inspirational’ effect of Leaders is more explicit
1e – integrates now the ‘flexibility’ factor and the ‘decision making
capability’ of Leaders in understanding and driving change
Strategy (2) Policy & Strategy 2a – clearer focus on understanding the ‘external’ environment
2b – emphasis on internal, and adds ‘capabilities’
2c – has now ‘sustainability’ built into the strategy and adds ‘business
model/drivers’ understanding
2d – the direct link to processes is removed while making more explicitly
the link to results, also the ‘circle is closed’ within this criterion with the
timely refinement and/or reconsidering of strategic choices
People (3) People 3a – people plans directly linked into strategy and results (7)
3b – capabilities used now, and more future oriented
3c – added ’alignment’ and making the link with engaging people e.g.
into process effectiveness and efficiency
3d – positioning the people themselves as the ‘communicators’ and as
the actors in ‘sharing what works’
3e – introducing ‘work-life balance’ and ‘mutual support and care’ , also
adds engagement of people in the wider society
Partnerships & Partnerships & 4a –adds ‘suppliers’ for a more complete coverage and emphasises the
Resources (4) Resources ‘mutual benefit’ for long term relationships
4b – positions more clearly finance to ‘secure’ success, and added ‘long
term with short term financial planning consistency’
4c – adds now ‘natural resources’ and ability to show ‘footprint’
4d – clarifies the need for a ‘portfolio’ to support strategy
4e – better positioned as key in supporting decisions, added the
awareness and use of ‘networks’ as source of knowledge
Processes, Processes 5a – positioned now as part of ‘the management system’, integrating the
Products and aspects of the former 5b, adds ‘optimisation’
Services (5) 5b – the new 5b is an improved version of the former 5c
5c – an entirely new criterion to emphasize these essential activities in
any organisation (including non-profit, public sector)
5d – like the former 5d but positioned as ‘delivering the value
proposition’ and reinforcing the full product/service life cycle
5e – like the former 5e, reinforcing the need to enhance the offering and
to engage customers also in ‘responsible use’ of your products &/
services

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Further information and feedback
For more information on the EFQM Excellence Model 2010, you can:
 Visit our website www.efqm.org for regularly updated information and a list of frequently
asked questions (FAQ List);
 Attend one of the EFQM Training Courses to learn how to assess using the Model or practically
apply the concepts of excellence within your organisation;
 Contact your EFQM Account Manager for further information on self-assessment tools, case
studies and other opportunities to get involved.

Improving this guide

This document is designed to evolve with feedback from our Members, Assessors and other
stakeholders, based on their practical experiences of applying the EFQM Excellence Model 2010.

After reading this guide, if you are eager to contribute your ideas on how we can improve this
document, you can do so by writing to EFQM, at info@efqm.org.

Get involved
The EFQM is a Membership organisation. We rely on input, ideas and suggestions from you to
create a vibrant community.

Through EFQM, there are numerous opportunities for you to engage in interactive discussions or
activities on this or other topics. For more information, please contact us at info@efqm.org.

Contributions
The following people contributed to this document:
 Matt Fisher, Ricoh Europe
 Bernadette Hislaire, Solvay
 Christian Forstner, Siemens
 Oliver Wittstock, Grundfos
 Johann Simmel, BMW

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 5. Processes, Products & Services

EFQM
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1140 Brussels, Belgium
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© EFQM 2010
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