November 2012 www.efqm.org
Table of Contents
Editorial with Marc Amblard, CEO, EFQM
What has changed in the Model 2013 version
An interview with Matt Fisher, COO, EFQM
Fit for the Future: Sharing What Works
Model 2013: An interview with some of the Core Team members
Bosch Bamberg Plant, the EFQM Award Winner
An overview of the new Model
Marc Amblard, Chief Executive Officer, EFQM Dear Readers, My first weeks at EFQM have been wonderfully challenging and motivating. We did not stand still… On the contrary! First of all, this year’s Forum turned out to be the best one ever. Participants have never been more satisfied. It also gave me a chance to meet a number of our members, which was great. I’m very proud of our team who made this event such a success. Also, I was amazed by the enthusiasm of our Award and Prizes winners; their emotions and cheers showed how rewarding their team efforts are. They’ve truly inspired us all. I guess this raises the bar for Vienna next year! Furthermore, I’ve had the pleasure to meet several of our partners in the UK, Spain, Germany, France, etc. and also from outside Europe. Over the last couple of years, EFQM has rebuilt trust and transparency in our relationship with these critical stakeholders. I am committed to building on this solid foundation and strengthening our partnerships. Likewise, I met with a number of assessors and trainers. All these meetings are important in order for me to have a full picture; the resulting inputs allow us to build more robust and relevant action plans aimed at bringing more Excellence to more of Europe We also took part in the European Manufacturing Summit. Our Award winner Bosch Bamberg Plant presented their experience before hundreds of peers and I had the chance to participate in a panel discussion. It is important we share the Excellence message with those who can benefit from it. The rest of the team is not standing still either. Max delivered training in remote location, Paul visited several stakeholders in Switzerland and Austria, Naomi and Matt are taking part in the Kalder Conference in Istanbul, Maialen presented EFQM in Pomplona, Spain, just to name a few actions… I strongly believe in strengthening our connections with all stakeholder groups in order to better understand needs and expectations and ultimately make journeys to Excellence more effective. In 2013, we will accelerate the pace in a number of areas. We already have a few projects on our agenda, the most visible of which being a revision of our website. I’ll share more information with you in due time. In the meantime, this edition is dedicated to our 2013 Model and the team that worked hard on it. Enjoy the reading,
A number of mega-trends were identified and explored by the Core Team, with input from hundreds of professionals from within and beyond the EFQM community. One of the key drivers of change was the need for organisations to be more flexible to compete within the global economy; to be agile enough to respond to either new opportunities or emerging threats with appropriate speed. The changes made have been summarised for each of the 3 components of the EFQM Excellence Model.
Changes to Titles The Core Team identified some titles which were confusing or not well understood e.g. “Achieving Balanced Results”. We have made changes to make these clearer and more “action oriented” e.g. “Taking Responsibility for a Sustainable Future” becomes “Creating a Sustainable Future”. Who is the audience for the concepts? The wording of the concepts was changed to appeal to people, especially managers, who don’t currently use the Model. What’s changed? The feedback received indicated that people felt the concepts of “Building Partnerships” and “Managing by Processes” were duplicated within the criteria. These concepts have been expanded to cover wider aspects of “Developing Organisational Capabilities” and “Managing with Agility”. Partners & Processes are still important; they remain in the titles of the 9 Criteria. All the bullet points within the concepts were reviewed, simplified where possible and adapted to reflect the feedback received.
Key Key Results? The title “Key Results” was causing confusion as the word “key” was also being used to identify the most important results in all results criteria i.e. Key Customer Results, Key People Results, Key Society Results and Key Key Results. What’s changed? The change to “Business Results” is accompanied by the definition of the “Business Stakeholders” e.g. owners, shareholders, investors, Head Office, Government. Feedback received indicated that this change would be acceptable in the Public Sector due to the increased focus on delivering “value for money”. No other changes to Criterion Titles or Criterion Part Titles Changes are restricted to the guidance points, aligned to the new concepts and using simplified language.
Complex & confusing The additional bullets that were added into the RADAR in 2010 added numerous benefits but added complexity. In addition, the wording of the Enabler Scorecard used the term “evidence”, which many found confusing, leading to different interpretations. What’s changed? The bullet points have been reduced to a single guidance point for each attribute of the RADAR. The scoring scale has been simplified to be consistent in each attribute. The wording reflects the fact that scoring is only done after all the available evidence and examples have been collected. It also changes the emphasis; it is now up to the applicant to prove they are a “Global Role Model” to achieve the maximum score, instead of the assessors having to prove they are not.
First things first, why did the model change? In 2009, the EFQM Board decided the Model should be reviewed on a regular basis to ensure it continues to reflect the reality of the world we work in. They agreed a 3 year cycle would give the best balance between the drivers of change and the need for consistency in implementation. How were the first reactions at the EFQM Forum? The reactions during the Forum were very positive. I think people saw this as a logical progression from the 2010 version; evolution, rather than revolution. We also got a lot of positive feedback about the language being simpler and easier to understand, which is very satisfying as it's something the team really focused on. Which of the improvements are you happiest with? Just one thing? Well, I've already mentioned the simplification of the language, so I'll say the simplification of the RADAR scoring. I think it's going to make things more transparent for everyone and, coupled with the changes to the EFQM Assessor Training, will help the Assessor Teams focus on what really matters to the organisation. What will be the challenges for members to apply the 2013 version compared with the 2010 one? I don't think the challenge will be in implementing the Model, I think the real challenge is ensuring their organisation is agile enough to remain competitive in the coming years. Obviously, the need for flexibility and agility is one of the issues that's been emphasised in the 2013 Model; for me, that's the challenge we all need to rise to. Finally, the process of updating the Model improved a lot compared to the 2010 update. For instance, last time it took a few months to have translations ready, this time 7 languages were available as of the launch. What did you learn this time which youâ€™d like to improve by 2016? We've worked really hard with our Partners to achieve a simultaneous launch, not just of the Model but also the supporting training and assessment tools. So far, everything has gone to plan and I'm really proud of the way everyone involved has worked together to make this happen. Improvement for 2016? I think we can make it even slicker next... But that's what defines the journey towards excellence, isn't it?
Making RADAR more accessible... -We need managers to think more deeply about the performance of their organisations, they need to act to make themselves more "future proof", RADAR should be part of a wise managers tool kit and making it more accessible takes the debate to a wider audience. -Itâ€™s not just part of an annual assessment. Chris Hakes, Leadership Agenda Ltd
I am happy with the overall improvement of the model, but I am particularly pleased with the fact that we managed to embed more strongly the notion of organisational agility and flexibility into the model. Managing the organisation through relevant and structured processes remains very important. However, a truly excellent organisation distinguishes itself by making sure that it can act swiftly and effectively to new challenges or opportunities that may occur in its environment. The world we live in is evolving faster than ever before and only organisations that can adapt timely to those changes will sustain excellent results. Mia Goetvinck, Ricoh Belgium
The need for organisational agility and flexibility is clearly a major challenge for most organisations I have been working with over the last three years. I am very happy that the refinement of the Fundamental Concepts clearly reflects these challenges, together with an even stronger focus on a â€œSustainable Futureâ€?. The new Fundamental Concepts send out a clear message to all organisations around the world: these are the essentials to achieving sustainable excellence!
As an assessor, I really appreciate the new RADAR approach which is now much easier to use in practice. I am convinced that the simplifications will promote consistent understanding and application of RADAR, and ensure realistic determination of excellence levels in assessments. Christian Forstner, Cfyouradvantage.com
This is not an easy question to answer as there are several candidates including the introduction of Agility at the level of the Fundamental Concepts. Agility has been within the Concepts for some time now but I was pleased to see it finally elevated as a headline. However, if I have to select just one improvement I would say the changes to the RADAR Matrices. Both the Enabler and Results Charts are now simpler in format and I particularly like it that we now talk about Approaches in the plural and that both “Sound” and “Scope & Relevance” are the Masters of the other Attributes. Geoff Carter, PACEPerformance
That’s a difficult question to ask a core team member; because of course I am happy with all the improvements that we collectively identified as a team from a strong stakeholder input. However, I think the one change that is most beneficial to model users and assessors is the simplification of the RADAR scoring matrix. I think it is much clearer to users as to the level of evidence they need to provide to themselves in a self-assessment, or to assessors in an award situation. Paul Evans, Liverpool John Moores University
Since I strongly believe in the power of diversity, I was very pleased with the way EFQM staffed the Core Team. From the first meeting, all members were fully dedicated to the challenge, focused and passionate about their contribution. Data collected by the Core Team members from a variety of sources inside and outside the EFQM community were discussed in a number of meetings, to generate debate on “megatrends” and how the practical value the Model could be further enhanced. Gradually, the results of these debates were translated into refined Fundamental Concepts of Excellence and a simplified RADAR approach. Thanks to excellent leadership by EFQM, the target has been fully achieved: the revised Model could be presented to the world at the FORUM in 8 different languages! Christian Forstner, Cfyouradvantage.com
It was both hard work and enjoyable, with rather more meetings in Brussels than we expected, but with something like this you do need to have a face to face discussion with colleagues to ensure that everyone understands the issues and gets to a sensible conclusion. The most satisfying part for me was the obvious passion that is still out there for the Model. That showed within the team many times, and in the comments received from the stakeholder groups. Paul Evans, Liverpool John Moores University
In the core team we discussed in depth the current and future challenges that all types of organisations are facing or will come across at some point in time. Going through the excellence model to capture these challenges with experienced people from different backgrounds and sectors was a great experience and most certainly also a learning journey. I feel honoured to have baan part of it. Mia Goetvinck, Ricoh Belgium
Just like being in an Award Assessment Team. You donâ€™t necessarily know everybody at kick-off. You need to get to know each other very quickly and where the passion lies for each team member and the stakeholder group (s)he is representing. Through the heat of the discussions, and working with, rather than against, the diversity of the team, we came to a good conclusion. After all, pearls start off as irritating grains of sand that get into the soft part of the oyster. You will need to ask my Core Team Colleagues whether I was an irritating grain of sand or the soft part of the oyster ď Š Geoff Carter, PACEPerformance
The Bosch Group is a leading international technology and service enterprise. More than 300,000 associates generated a turnover of 51.5 billion euros in the fiscal year 2011 through automotive and industrial technology, as well as consumer goods and building technology. With approximately 7,300 employees, Bosch Bamberg Plant manufactures components for Gasoline and Diesel injection systems, sensors and spark plugs for the business sector automotive technology. As a lead plant it contributes its high technological competence to the international production network, supervising 20 locations in 11 countries worldwide.
Company name: Robert Bosch GmbH, Bamberg Plant Address: Robert Bosch Strasse 40, D-96050 Bamberg, Germany Website: www.bosch.com Contact: email@example.com; firstname.lastname@example.org
How does it feel to win the EFQM Award? What does it mean to you? We are overwhelmed with joy and gratification. Winning the EFQM Award makes us really proud. It gives us the recognition for all the efforts and the consistent work on our areas for improvement over the last years, and for the achievements we have reached by that. Now we got more certainty that we are on the right path to Business Excellence, but through the assessors feedback we also see that there is still room for improvement and the journey will go on. Why would you recommend companies to use the Model? How has the Model changed your way of working? The EFQM Model is the most sound and comprehensive framework to improve and develop all aspects of the business of an organisation. Besides working on processes which was common to us, it made us reconsider our leadership behavior as well as our relationship to our people, customers, suppliers and all other partners relevant to us. Most of all, the Model taught us to develop a well reflected and balanced strategy and to implement it through a consistent policy deployment process, aligning all processes, activities and targets with the strategy. The model can be used in different ways, to map strategies or to assess performance for instance. Whatâ€™s its most beneficial use for you? Both are important for us. The EFQM Model gives us support and security through valuable hints when refining the strategy and important processes, especially regarding the approaches and procedures how to develop them. Our regular EFQM assessments supply feedback also to the contents of the approaches. To improve fast and targeted it is necessary to have a good understanding of the Model and a specialist to give you advices, but also to conduct assessments with people from outside of the organisation, to get a fresh eye on your challenges and activities.
What has been the financial impact of using the Model? Can you share an example with us? Focusing all improvement actions on deploying our balanced strategy and the aligned business plan, we could achieve a cost reduction in our plant of more than 22% since 2005, although the economics (wages, material, energy) raised by over 20% in the same period. This was managed while safeguarding the employment even through the crisis 2009 and increasing the customer satisfaction to a top value.
Sharing Numbersâ€Ś The diagram below shows the cumulated cost reduction progress of Bamberg Plant based on year 2005. Bamberg Plant achieved in 2011 a cost reduction of 22 % compared to 2005. As comparisons the price change rates (PCR), demanded by our customer in the Gasoline and Diesel engine markets, and the development of economic indicators (e.g. personnel costs, raw material costs, energy) are shown. Based on our targeted and sustainable work on processes, we managed to overcompensate the increase of economics and to fall below the price change rates â€“ by that we contributed to improving the profitability of Bosch as a whole.
The EFQM Excellence Model allows people to understand the cause and effect relationships between what their organisation does and the Results it achieves. The Model comprises of a set of three integrated components: The Fundamental Concepts define the underlying principles that form the foundation for achieving sustainable excellence in any organisation. The Criteria provide a framework to help organisations to convert the Fundamental Concepts and RADAR thinking into practice. RADAR is a simple but powerful tool for driving systematic improvement in all areas of the organisation. The beauty of the Model is that it can be applied to any organisation, regardless of size, sector or maturity. It is non-prescriptive and it takes into account a number of different concepts. It provides a common language that enables our members to effectively share their knowledge and experience, both inside and outside their own organisation.
The Fundamental Concepts of Excellence outline the foundation for achieving sustainable excellence in any organisation. They can be used as the basis to describe the attributes of an excellent organisational culture. They also serve as a common language for top management. There are 8 Fundamentals Concepts:
Excellent organisations consistently add value for customers by understanding, anticipating and fulfilling needs, expectations and opportunities.
Excellent organisations have a positive impact on the world around them by enhancing their performance whilst simultaneously advancing the economic, environmental and social conditions within the communities they touch.
Excellent organisations enhance their capabilities by effectively managing change within and beyond the organisational boundaries.
Excellent organisations generate increased value and levels of performance through continual improvement and systematic innovation by harnessing the creativity of their stakeholders.
Excellent organisations have leaders who shape the future and make it happen, acting as role models for its values and ethics.
Excellent organisations are widely recognised for their ability to identify and respond effectively and efficiently to opportunities and threats.
Excellent organisations value their people and create a culture of empowerment for the achievement of both organisational and personal goals.
Excellent organisations achieve sustained outstanding results that meet both the short and long term needs of all their stakeholders, within the context of their operating environment.
The EFQM Excellence Model allows people to understand the cause and effect relationships between what their organisation does, the Enablers, and the Results it achieves.
To achieve sustained success, an organisation needs strong leadership and clear strategic direction. They need to develop and improve their people, partnerships and processes to deliver value-adding products and services to their customers. If the right approaches are effectively implemented, they will achieve the results they, and their stakeholders, expect.
There are 5 enablers, pictured on the left-hand side of the Model. These are the things an organisation needs to do to develop and implement their strategy.
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 on-going success of the organisation.
Definition: Excellent organisations implement their mission and vision by developing and deploying a stakeholder focused strategy. Policies, plans, objectives and processes are developed and deployed to deliver the strategy.
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.
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.
Definition: Excellent organisations design, manage and improve processes to generate increasing value for customers and other stakeholders.
There are 4 result areas, shown on the right-hand side of the Model. These are the results an organisation achieves, in line with their strategic goals. In all 4 results areas, we find that excellent organisations: Develop a set of key performance indicators and related outcomes to determine the successful deployment of their strategy, based on the needs and expectations of the relevant stakeholder groups. Set clear targets for key results, based on the needs and expectations of their business stakeholders, in line with their chosen strategy. Segment results to understand the performance of specific areas of the organisation and the experience, needs and expectations of their stakeholders. Demonstrate positive or sustained good business results over at least 3 years. Clearly understand the underlying reasons and drivers of observed trends and the impact these results will have on other performance indicators and related outcomes. Have confidence in their future performance and results based on their understanding of the cause and effect relationships established. Understand how their key results compare to similar organisations and use this data, where relevant, for target setting.
Definition: Excellent organisations achieve and sustain outstanding results that meet or exceed the needs and expectations of their customers.
Definition: Excellent organisations achieve and sustain outstanding results that meet or exceed the needs and expectations of their people.
Definition: Excellent organisations achieve and sustain outstanding results that meet or exceed the needs and expectations of relevant stakeholders within society.
Definition: Excellent organisations achieve and sustain outstanding results that meet or exceed the needs and expectations of their business stakeholders.
The RADAR logic is a dynamic assessment framework and powerful management tool that provides a structured approach to questioning the performance of an organisation.
At the highest level Radar logic states that an organisation should: Determine the Results it is aiming to achieve as part of its strategy. Plan and develop an integrated set of sound Approaches to deliver the required results both now and in the future. Deploy the approaches in a systematic way to ensure implementation. Assess and Refine the deployed approaches based on monitoring and analysis of the results achieved and on-going learning activities.
The Model can be used to assess an organisation’s current capabilities. The output of an assessment is normally a number of strengths and opportunities to improve future performance. Identifying an organisation’s strengths is important, not only so you don’t stop doing the things you’re good at but also because these strengths may help in addressing the issues identified. By definition, complying with a defined standard is not excellence. Excellence is about going beyond what is expected. Unlike auditing against a standard, an assessment gives the management team a number of opportunities; options. Which points they choose to address, had how they choose to address them, will depend on their strategic priorities. Umicore is a larger organization, globally active; we have the advantage to feel the bad and the good winds all over the world. Based on these winds and the target we have in mind we plot our course. But, being active in a rather specific area and despite of our professional intuition, it could be that we cannot feel all omens. At this point the model review is of crucial importance: the review is done by highly appreciated professionals with a vision, from a broad scope of areas. The reviewed model is their common sense of needs for the future, confirming the right track of the journey so far; at the same time it is a new self-fulfilling prophecy: it will help those who with a different view, to converge for the insights. Remy Reul, Umicore 18
EFQM is committed to help organisations drive improvement through the use of the EFQM Excellence Model, a comprehensive management framework used by over 30 000 organisations in Europe. For the last 20 years, we manage the development of this Model, incorporating the experiences and learning from these organisations to ensure it reflects reality. To help you implement our Model, we provide training, assessment tools and recognition. But our real talent comes from gathering good practices and integrating those within our portfolio. EFQM, a not-for-profit membership Foundation, aims to share what works, through case studies, online seminars, working groups, conferences and thematic events. We nurture a network of world-class organisations and their leaders who share our passion for business excellence. We believe that the EFQM Model is a common framework that helps us all to improve our businesses. Sharing our member’s enthusiasm, their motivation and the results they achieve; that is what we work for at EFQM.
Organisations can join the EFQM member community and enjoy some exclusive benefits such as access to free assessment and improvement tools, participation to events, themed webinars and good practice visits. To learn more about our member community, feel free to contact us or to join one of the free introduction meetings at our offices in Brussels. As a member of EFQM, you will enjoy the following exclusive benefits: Expert advice and support for your organisation’s journey towards excellence. Access to the EFQM Knowledge Base is a database containing a number of free to download assessment, management and improvement tools; as well as Good Practices identified from the last 3 years of the EFQM Excellence Awards. Members receive a discount of 20% on EFQM Products & Services, including Training, Publications and Recognition. There are themed events and webinars throughout the year, with Good Practices and new tools being shared and explained by EFQM and member organisations. For more information, please e-mail email@example.com 19
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