FUNDAMENTAL CONCEPTS OF EXCELLENCE

FUNDAMENTAL CONCEPTS OF EXCELLENCE

EFQM SHARES WHAT WORKS 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 have managed the development of this Model, incorporating the experiences and learning from these organisations to ensure it reflects reality and offers a path for sustainable excellence. 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. EFQM 2012 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means (be this electronically, mechanically, through photocopy or recording, or otherwise) without either the prior written permission of, or a license permitting restricted copying and use for a third party, from the publisher.

Fundamental Concepts of Excellence 2013 Contents introduction to the fundamental concepts OF EXCELLENCE Adding Value for Customers Creating a Sustainable Future Developing Organisational Capability Harnessing Creativity & Innovation Leading with Vision, Inspiration & Integrity Managing with Agility Succeeding through the Talent of People Sustaining Outstanding Results The Fundamental Concepts OF EXCELLENCE 03 03 03 04 04 05 05 06 06 How mature is your organisation? 07 Further reading 08 Acknowledgements 09 1

2 Fundamental Concepts of Excellence 2013 Introduction to the Fundamental Concepts of Excellence Adding Value for Customers Sustaining Outstanding Results Creating a Sustainable Future Succeeding through the Talent of People Developing Organisational Capability Managing with Agility Harnessing Creativity & Innovation Leading with Vision, Inspiration & Integrity EFQM 2012 Excellent Organisations achieve and sustain outstanding levels of performance that meet or exceed the expectations of all their stakeholders. We can all think of organisations that we would recognise as being excellent. They may well operate in different environments, with different stakeholder constituencies, and come in all shapes and sizes but what they share a common mindset that is based on a number of attributes and ways of working that separate them from the crowd. Concepts of Excellence have been identified through a rigorous process that included benchmarking globally, searching extensively for emerging management trends and, last but not least, a series of interviews with senior executives from a cross-section of industries operating across Europe. This publication describes these attributes, what EFQM calls the Fundamental Concepts of Excellence, in further detail and we believe that their incorporation into the ways of working of any organisation will help it to improve its overall performance. The eight Fundamental Each of the Concepts mentioned in this publication is important in its own right but maximum benefit is achieved when an organisation can integrate them all into its culture.

Fundamental Concepts of Excellence 2013 How mature is your organisation? Now you might want to consider your own organisation and ask yourself the following questions: Do I understand and accept that the Fundamental Concepts are indeed an important ingredient for the future success of my organisation? If not, why not? If I do understand and accept the relevance of these Fundamental Concepts, to what degree are they living and growing in my organisation? And, above all, what are the next steps I can undertake to improve the performance of my organisation? For every concept, here s where you might be and where you could go: Concept Starting Adding Value for Customers Customer groups are identified, day to day contacts are managed and satisfaction is measured. Creating a Sustainable Future On the Way Needs and expectations are deeply The on-going dialogue with customers understood and embedded in is used to anticipate changes to the customer related management needs and expectations of markets, processes. current and potential customers. Management, legal and The organisation s approaches global/local regulatory support the aims of economic, social requirements are understood and environmental sustainability. and met. Developing Organisational Capability A process exists for understanding current capabilities and future organisational needs. Harnessing Creativity & Innovation New ideas and innovations are encouraged. Leading with The Vision and Mission are Vision, Inspiration defined, communicated and & Integrity generally understood. Mature There is a structured process managing organisational change. Sustainable corporate behaviour is recognised by key stakeholders as an integral part of the organisation's purpose and strategy. The organisation has a proven track record for effectively managing change, not only within their own operations but across all key parts of their value chain. Creativity and Innovation The organisation has established a are managed as structured reputation for driving change within processes with assigned roles and and beyond their market sector through responsibilities. their creativity and innovation. A common and shared purpose derived Leaders inspire people throughout from the Vision, Mission and Values is the organisation through shared established and visible in the way the values, role model behaviour. organisation operates and the way people work. Managing with Agility The processes required to achieve the desired results are defined, developed, measured and managed. Comparative data and information are used to put performance into context and drive improvement with appropriate speed for the market. The organisation is able to anticipate and take timely action to exploit opportunities or effectively manage threats to ensure their future success. Succeeding through the Talent of People Approaches are in place to involve people and their talents are recognised. The potential of people is increasingly enabled; people are motivated and prepared to go the extra mile. A culture of trust and empowerment drives performance and enhances the organisation s image and reputation. Sustaining Outstanding Results A balanced set of results is used The strategic goals of the The key stakeholders have relevant data to monitor performance against organisation are based on the and confidence that the organisation strategic goals and how it compares needs and expectations of will be able to sustain outstanding to competitors or best in class their key stakeholder groups. performance levels. organisations. 7

EFQM 2012 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means (be this electronically, mechanically, through photocopy or recording, or otherwise) without either the prior written permission of, or a license permitting restricted copying and use for a third party, from the publisher. ISBN: 978-90-5236-658-6 EFQM Avenue des Olympiades 2 1140 Brussels, Belgium Tel +32 (2) 775 35 11 Fax +32 (2) 775 35 35 info@efqm.org www.efqm.org