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Measuring the

Quality Standards of
your Chamber
Eurochambres
Academy
Sigtuna Stockholm,
Sweden
4 July 2002

Presenting EFQM
Introductions
Background

of Participants
Expectations of Course
EFQM Overview
What is Quality?
Different Methods
Using an Excellence Model

Coffee

Break
Self-Assessment
Case Study: Chamber of Commerce in Nice
Follow-up & Questions

Introductions
Melissa

Rancourt, EFQM
MBA - Entrepreneurship

Industrial Engineering

Operations
Management

Public Sector
and Non-Profit
Organisations

Our Group
Represented

Santiago
Bradford
Austria
Tampere
Yugoslav

by 9 Chambers

Costa Rica
Mexico City
Stockholm
Sheffield

Expectations
Dealing

with the challenge of culture


How do I ensure buy-in from all staff?
Ensuring sufficient time and resources
commitment from within the organisation
Dealing with confusion of a multitude of standards
How do I network with others on this topic? What
are my resources?
How do I measure intellectual work?
What are everyones experiences with
measurement?
What are other Chambers doing to follow a quality
framework?

EFQM Described
EFQM, a not-for-profit membership
foundation,
- is the creator of the EFQM Excellence
Model,
- manages the European Quality
Awards, and
- is a resource to European

Located

The Origins of
EFQM

in Brussels, Belgium
Founded in 1989 by 14 leading European
organisations :

BT plc
KLM - Royal Dutch Airlines
Robert Bosch GmbH Nestl AG
Bull SA
Philips Electronics NV
Ciba-Geigy AG
Ing. C. Olivetti & C.S.p.A.
Dassault Aviation
Renault
AB Electrolux
Gebr. Sulzer AG
Fiat Auto Spa
Volkswagen AG

Vision and Mission


Vision:
A world in which organisations in
Europe excel

Mission:
To be the driving force for sustainable
excellence in organisations in Europe

The Quality Game


Define
Quality

Name
that
Tool

Acrony
m Craze

Compan
y Match

Buzz
Words

For 1 point!
Name

3 words that come to mind


when you hear the word QUALITY.

Answer:
Excellence

Speed

Customer Service

Management

People

Customer

Product

Appearance

Service

Satisfaction

TQM

Results

Performance

Cost

Efficiency

Mission

Strategy

Recognition

For 1 point!
A

picture of squares, triangles, and


other shapes that demonstrate the
steps of an activity.

Answer:
FLOWCHART

For 1 point!
What

does TQM stand for?

Answer:
Total Quality
Management

For 1 point!
When

I think of Quality and FOOD,


this company comes to mind...

Answer:
Restaurant, Brand,
Specific Product,
Supermarket, ...

For 1 point!
Describe

BENCHMARKING.

Answer:
A systematic and continuous measurement process; a
process of continuously comparing and measuring an
organisation's business processes against business leaders
anywhere in the world to gain information which will help
the organisation take action to improve its performance.

For 2 points!
What

would be your FIRST step to


implementing a Quality programme
in your Chambers?

Answer:
Define the goal.
Review the business
strategy.

For 2 points!
I

would like to get a list of ideas from


a group of people. What is one way
to organise this?

Answer:
BRAINSTORMING

For 2 points!
What

does ISO stand for?

Answer:
International
Organization for
Standardization

For 2 points!
When

I think of Quality and TRAVEL,


this company comes to mind:

Answer:
Airlines, Travel Agencies,
Trains, Local, National,
International, ...

For 2 points!
Describe

BALANCED SCORECARD.

Answer:
A set of vital measures or key figures giving information on the
performance and the achieving of targets of the whole business
operation of a company. The long-term set of measures chosen
reflects all areas where the organization has set strategic targets,
such as customer satisfaction, financial returns, shareholder value,
quality, operational excellence, innovation potential, people
satisfaction, public image, etc.

For 3 points!
Complete

this sentence.
Excellence is:

Answer:

- achieving results that delight all the


stakeholders.
- creating sustainable customer value.
- visionary and inspirational leadership.
- managing the organisation through a
set of systems, processes, and facts.
- maximising the contribution of
employees through their development

For 3 points!
I

need to measure an activity and would


like to make sure that the process stays
within certain limits. How can I show
this?

Answer:
CONTROL CHART

For 3 points!
What

does CSR stand for?

Answer:
Corporate Social
Responsibility

For 3 points!
When

I think of Quality and SERVICE,


this company comes to mind:

Answer:
Work-related, Liferelated, Products,
Chains, Size, ...

For 3 points!
Describe

KNOWLEDGE
MANAGEMENT.

Answer:
Knowledge management is the systematic process of
identifying, capturing, and transferring information and
knowledge people can use to create, compete, and improve.

In

Business
Imperatives

our world today, we need to...


Define a new approach to strategy and
planning
Become innovative, fast, flexible.
Manage, create, and share knowledge.
Align and engage people more effectively.
Develop better leaders.
Understand the drivers behind business
results.

Another Framework
The EFQM Excellence Model is a good
practice management framework. This
framework is built on a set of
underlying values and a belief system
about the purpose, position and impact
of organisations.

The EFQM Excellence Model is a registered trademark of EFQM

Excellence Model
Based

on these Fundamental Concepts:


Customer focus
Partnership Development
People development and involvement
Management by Processes and facts
Continuous learning, innovation and improvement
Leadership and constancy of purpose
Corporate social responsibility
Results orientation

Excellence Model
Why

do companies use this Model?


To give a realistic view of how good they are.
To identify where to focus improvement effort
To bring initiatives together into a single framework
To encourage the sharing of internal and external
good practice
To understand the drivers behind business results
To provide a common language
To create a balance between different stakeholder
groups

More

Who is using the


Model?

than 20,000 organisations across


Europe
60% of Europes largest 25 companies
9 of the 13 European companies in the FTs
50 Worlds Most Respected Companies in
2001
More than 10,000 SMEs
20 out of the 50 Eurostock companies

The EFQM Excellence Model is a registered trademark of EFQM

Who is using the


Model?
More than 18 different Excellence-related
Awards throughout
Europe

European Quality Award


Austrian Quality Award
Belgian Quality Award
Danish Quality Award
Irish Business Excellence Awards
Finnish Quality Award
French Quality Award
Ludwig Erhard Award
Italian Quality Award
INK Prize (based on Model)
Northern Ireland Quality Award
Norwegian Quality Award
Excellence Award, Portugal
Scottish Award for Business Excellence
Swedish Quality Award
Esprix Swiss Quality Award for Business Excellence
UK Business Excellence Award
National Quality Award Turkey
The EFQM Excellence Model is a registered trademark of EFQM
Wales Quality Award

The Impact of
Excellence
Does Quality impact
the Bottom-Line?

Percent Change

Study shows that stock prices of award winners increased by an average


of 114% over a five-year period
Winners improved sales by 69%, total assets by 79%
Award winners outperformed their benchmarks on income by 56%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

91%

Award Winners

69%

Benchmark Firms
43%
32%

9%

8%
1%

Operating
Income

Sales

Source: Vinod Singhal, TQM Boosts the bottom line, April 2002

Return on
Sales

6%

Return on
Assets

Coffee Break

Self-Assessment
A

comprehensive, systematic and regular


review by the organisation of its activities
and results referenced against a model of
Excellence.
Allows an organisation to discern clearly its
strengths and areas in which improvements
can be made and results in planned
improvement actions that are then
monitored for progress.

The EFQM Excellence Model is a registered trademark of EFQM

Self-Assessment
Process

Step 1: Develop and Retain Commitment.


The success and sustainability of your SelfAssessment process depends upon the active
ownership by your Senior Managers.
Senior managers will buy into this if
they understand how it adds value to the
business
it meets some of their needs to improve or
change the business
it offers the opportunity for public or peer
recognition.

Step

Self-Assessment
Process

1: Develop and Retain Commitment.

How do you create


commitment and buy-in in
your Chamber?

Step

Self-Assessment
Process

2: Develop and Deploy a


Communication Strategy.
What messages do you need to communicate?
Why do you need to communicate?
Who do you communicate to?
Who should communicate?
How?
When?
Where?

Step

Self-Assessment
Process

3: Plan your Self-Assessment.


Consider: Benefits & Outcomes, Resources,
Maturity, Culture
Choose your technique.
Questionnaire
Assessment Workshop
Pro-Forma
Award Simulation
Combination

Step

Self-Assessment
Process

4: Define the roles of individuals.


Sponsors
Project Manager
Staff
Experts
Assessors
Data Gatherers
Report Writers
Facilitator

Who do you involve?

Step

Self-Assessment
Process

5: Conduct the Self-Assessment.


Step 6: Consider outcomes and prioritise.
Step 7: Establish and implement action
plans.

What process do you use


for implementing a quality
programme?

Case Study
Chamber

of Commerce of Industry Nice Cte

dAzur
Democratic institution
Managed by an Assembly of 52 members
Elected from 54,000 commercial, industrial and
service providers
Public Establishment
Under Authority of 3 Ministries: Finance & Industry,
Transport, National Educational
Service Providing Enterprise
Coaching of Enterprises
University and Professional Education
Management of two airports, four ports

Case Study
Chamber

dAzur

of Commerce of Industry Nice Cte

27 Locations through the Apes-Maritimes with


headquarters in Nice
1015 Employees
39% executives
36% supervisors
25% other employees

CCI Nice
Vision

We would like to be the most performing in the


public sector in Europe in serving local economical
development.
Mission
We have six principal missions
Representation of local enterprises
Observation and presentation of economical information
Economical coordination
Coaching and consulting to enterprises in the
management of their transformation
Basic, higher and continued education
Management and development of equipment of
infrastructures

CCI Nice
Strategic

Objectives

Continue the implement of services for enterprices


based on a politic of proximity and territory
Contribute to the set-up of enterprises in selection
of projects and by research for investors
Consolidate and develop our activities within
professional education
Town and country planning -- intensify our actions to
promote an entrepreneurial Cte dAzur
Continuous improvement of our Total Quality
Management

Leadership
CCI

Nice

Yearly Action Plan for the excellence approach with


yearly objectives
Leader participation in 400 department, regional,
national, international organisations
Close to 100% of our leaders has daily involvement
with customers, partners and the society by meetings
and working groups
Organisational and Productivity Audits are done to
measure productivity and ensure objectives are
achieved.

Leadership
Questions

What is the Leadership style within the


organisation?
What are the priorities that Leaders
consistently pay attention to?
How do Leaders work in partnership with
Key Stakeholders?

People
CCI

Nice

Better formalisation of the measurement and review of


HR approaches.
Goal to define an approach to encourage suggestions
and innovations by employees
Annual people satisfaction survey is reviewed every
year
ISO Certification of the present management of
competencies
Establishment of an approach of Center of
Responsibilities (CR).

People
Questions

How do you identify and develop the skills


of your employees?
What opportunities are provided to enable
employees to participate in improvement
activities?
What policies exist to motivate and
recognise employees?

Policy & Strategy


Questions

What information do you collect and use to


define your market?
What are the key strategic goals of the
organisation?
Describe your planning process.

Partnerships/Resour
ces
Questions
Who are your key partners?
How does the organisation manage
technology in support of the strategy?
How is information and knowledge collected
and managed within the organisation?

Process
Questions

What are your key business processes?


How are products and services produced
and delivered to the customer?
How do customers gain access to your
organisation?