KEY FEATURES AND BENEFITS OF THE EFQM MODEL ©EFQM 2014

Vilnius, 3rd February 2015

What is EFQM? Non-profit foundation formed in 1989 450 Members; 30.000 Model users across Europe 89% of people agree using the Model helps increase their organisation’s competitiveness 90% of people agree using the Model helps develop a culture of continuous improvement 39 partners covering 34 countries including Lithuania

©EFQM 2014 ©2013 EFQM

EFQM Strategy House Our Mission: Inspire Organisations to achieve Excellence

Ensure Sustainable Financial Independence

Expand Excellence Footprint

Increase Value for Members

Develop Partner Network & Collaboration

DevelopInternal Internal Capabilities Develop Capabilities ©EFQM 2014

Support EU Policy Deployment

Some of our members

©EFQM 2014

Covering all types of Organisations Services / Public Sector Spanish Youth Association

Austrian 5* hotel

Spanish Hospital

Slovak Finance Ministry

Luxmbg Dentist Irish Polish City govt Swedish Bank Office High School

SMEs German Hi Tech Start-up

Russian Water Utility French Airports

EU Institution

French Postal Services British University Italian Telecom

Swiss Rail Operator

Large

French Electric Utility

Spanish Gas Japanese Printing & Distributor German Documt Mgmt Dutch Engrg Group Austrian Production Hi Tech Equipmt Mfr Danish Belgian Materials Pumps Mfr Swedish & German British Technologies Car Manufacturers Pumps Mfr

Industry ©EFQM 2014

5

Mfr: Manufacturer

39 Partners in 34 Countries

©EFQM 2014

6

Partners in Europe are growing

Lithuania

©EFQM 2014

THE ©EFQM 2014

EFQM MODEL

The EFQM Excellence Model Dealing with expectations   

Brand reputation Ethical behaviour Transparent communication

  

Opportunities to develop & grow Work / life balance Pride in Organisation

Society

   

Leaders who inspire trust Clearly defined long-term strategy Robust internal processes The right Partners & Suppliers ©EFQM 2014

People

 

Value-adding products & services Excellent service

  

Customers

Return on investment Optimise profitability Sustainable financial growth

Shareholders

EFQM Excellence Model 2013  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.

 The Model is non-prescriptive and can be applied to any organisation, regardless of size, sector or maturity.  To achieve sustained success, any 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.

©EFQM 2014

Quotes  “The strengths of the EFQM Excellence Model have been recognised outside Europe; organisations from Iceland to Australia, from Thailand to Trinidad are using the Model to support their sustainable development. And as the use of the Model spreads, so do the underlying values and principles of corporate ethics, fairness and equality.”  Jacques Delors, President, European Commission, (1985 – 1995) ©EFQM 2014

 “Over the past 25 years, the EFQM has guided many organisations, from both the public and private sectors, to improve productivity and efficiency and to develop their human capital. I am grateful to EFQM for its excellent work, supporting the European strategy for growth and jobs.”  José Manuel Barroso, President, European Commission, (2004 – 2014)

11

The EFQM Model

8 Fundamental Concepts

©EFQM 2014

9 Criteria

RADAR

cible

diplome

©EFQM 2014

8 Fundamental Concepts of Excellence

©EFQM 2014

RADAR ASSESS the impact and REFINE based on

Define the RESULTS you want to achieve

analysis and learning

Systematically

DEPLOY these approaches ©EFQM 2014

Develop the

APPROACHES the will deliver these results

What the EFQM Model is / is not  Helps identify current strengths, areas for improvement and actions driving your results  Drives and stimulates continuous improvement

 Is pragmatic and practical: developed with & for organisations  Integrates all initiatives, providing a holistic approach to business excellence  Supports strategic alignment  Is NOT prescriptive: you choose what is relevant for you  Is NOT an additional initiative ©EFQM 2014

Benefits for All  Management 

Model helps them to see links between strategy and operations



Engages employees in change



Leads improvements

 Leaders 

Helps to deliver the strategy



Helps to understand what is important to do as a leader



Develops a unique culture where excellence is the norm

 Employees 

Provides platform to build a common direction



Helps to understand the impact of their action



Allows to see how they can contribute to progress

©EFQM 2014

A Holistic Management System Examples of Enablers Leadership

People

Processes, Products & Services



Vision, Mission & Values





Leadership Competencies &

  

Development 

Balanced Scorecard



Management Meetings



Stakeholder Meetings



Annual Report / Sustainability Report



Employee Engagement Survey Competency & Job Description Objectives Setting, Training Plan & Appraisal Internal Communication

(e.g. ISO9001) 

Process Improvement (e.g. Six Sigma)



R&D

Strategy



Marketing

    



Customer Satisfaction Surveys



Customer Service & Relationship

SWOT Analysis Strategic Planning Process Communicating Strategy Risk Management Scenario Planning

Partnerships & Resources     ©EFQM 2014

Process Management System

Supply Chain Management Financial Budgets & Management(e.g. ISO14001) Environmental Management System IT Infrastructure

Complementary with Lean/6 Sigma Lean / Six Sigma (L/6S)

EFQM vs. LEAN/6 SIGMA  

EFQM Model

Strengths



  Weaknesses

©EFQM 2014



  

Strengths Powerful tool to improve process performance Clear relevance to operational processes Benefits generated clearly measurable

   

Weakness Does not give a holistic overview of organisation or ensure alignment Limited strategic perspective HR policies and practices not considered Overall management system not addressed

Holistic overview of organisation Combining Strengths ensures alignment to strategy  EFQM & L/6S could deliver People included in assessment increased benefits for the of both Enablers & Results organisation that either program in Considers complete isolation would achieve by ensuring management system operational improvements are aligned to strategic objectives

EFQM strength supports L/6S weakness  EFQM Assessment can provide strategic focus for L/6S teams  EFQM Assessment can be used to ensure “conditions” are right for successful L/6S implementation

Not designed as a “process improvement” tool Benefits generated can be difficult to measure Relevance to operational management not always clear

Combining weaknesses  Teams focus on operational improvements that are not aligned to strategic direction  Improvement culture not embedded

L/6S strength supports EFQM weakness  L/6S can be used to implement improvements identified by EFQM Assessment, ensuring benefits quantified

Assessing Maturity ©EFQM 2014

Self-Assessment Options Supported by Evidence Site Visit Simulation EFQM Excellence Matrix EFQM Business Excellence Matrix

Low Process Rigour

EFQM Quick Check Questionnaires Simple SelfAssessment Based on Opinion

©EFQM 2014

High Process Rigour

Phases of Excellence Concept

Adding Value for Customers Creating a Sustainable Future Developing Organisational Capability Harnessing Creativity & Innovation

Start Up

On the Way

Needs and expectations are Customer groups are identified, deeply understood and day to day contacts are managed embedded in customer related and satisfaction is measured. management processes. Management, legal and global/local regulatory requirements are understood and met.

A process exists for understanding current capabilities and future organisational needs.

New ideas and innovations are encouraged.

The organisation’s approaches support the aims of economic, social and environmental sustainability.

There is a structured process managing organisational change. Creativity and Innovation are managed as structured processes with assigned roles and responsibilities.

Mature The on-going dialogue with customers is used to anticipate changes to the needs and expectations of markets, current and potential customers. 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. There is a systematic approach to creativity and innovation, throughout the organisation and related values streams and communities.

©EFQM 2014

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RADAR for Enablers Sound

Approach Integrated Implemented Deployment Systematic

Enablers

Measurement Assessment & Refinement

Learning & Creativity Improvement & Innovation

©EFQM 2014

RADAR for Results Scope Relevance & Usability

Integrity Segmentation

Results

Trends Targets Performance

Comparisons Causes ©EFQM 2014

Supporting Strategic Alignment ©EFQM 2014

Integral to Strategic Planning Corp. Guidance

- KPIs / Targets - Deployment

External signals

Strategic Plan Past Performance

Plant 1

Initiative #1 Initiative #2 Initiative #3

Assessment / Gap analysis

©EFQM 2014

Div 2

- Maturity - Results

EFQM Assessment

©EFQM 2014

Strategic Initiatives

©EFQM 2014

Ex: Increase Customer Satisfaction Leadership

Manage & Motivate

People

Processes, Prod, Sces People Results

Employee Empowrmt

New Products

Training

Lead time reduction

Strategy

Mtgs with Customer

Product Strategy Service Strategy Partnership & Resour.

Customer Focus Culture

Standardization Cost reduction Quality

Suppliers relations New Technologies

©EFQM 2014

Business Results

Employee Engagement

Customers Results

Customer Satisfaction

Society Results

Brand Image

Price Premium

Market Share Revenue Growth

Does it Work? ©EFQM 2014

Very positive perception Using the EFQM Excellence Model helps organisations to: 0%

20%

40%

60%

80%

100%

Increase competitiveness

88%

Develop their sustainability strategy & supporting policies

Increase environmental awareness

Increase innovation

89%

82%

2011

79%

2013 Improve people management practices

Develop stakeholder focused strategic plans

Develop a culture of continuous improvement

Manage their processes

©EFQM 2014

89%

88%

90%

88%

507 respondants in 2013

Deployment drives Revenue Revenue per available room € 200

Amount in Euros

€ 150

Actual

€ 100

Target

€ 50

€0 2009

©EFQM 2014

2010 EFQM Prize Winner

2011

2012 EFQM Award Winner

… Financial Performance

EFQM Assessment Score

Midlands Excellence Winner

UK Excellence Finalist

UK Excellence Winner

UK Excellence Finalist

UK Excellence Finalist

UK Excellence Winner

UK Excellence Winner

EFQM Excellence Prize

Award Year Business 1

Business 2 Profit ©EFQM 2014

BMW Regensburg Benefits of using the EFQM Excellence Model 

Overall employee satisfaction improvement achieved through dialogue, a clear sense of purpose and involvement of all parties.



The EFQM Model has helped BMW Regensburg plant to achieve a competitive advantage with flexible production process, helping to ensure customers expectations are met.



Improvements in processes and productivity has reduced the average production time per vehicle by over 16% from 2007 to 2011.



The use of the EFQM Model supports BMW Regensburg plant in achieving their goals through the closed-loop process as defined by the PDCA cycles. These include results in terms of quality, customer satisfaction and productivity. Productivity shows positive trends since 2007.

©EFQM 2014

Andreas Wendt, Plant Director

 “The EFQM assessments offer objective, valuable and helpful suggestions regarding strengths and potentials. The external perspective of the assessors clearly expands our viewpoint”  EFQM Prize Winner 2012

100%

“Labor Productivity”: hours worked per vehicle produced ;

Excellence

78,6%

80%

81,8%

83,7%

84,7%

85,4%

93,1%

93,4%

100%

hours per vehicle (HPV)

… Operational Efficiency

an indicator of the site’s operational efficiency.

60%

2007

2008

2009

2010

2011

EFQM Prize Winner

Basis: 100% value 2007

Actual

©EFQM 2014

2012

Benchmark

Target

Bosch Chassis Systems Benefits of using the EFQM Excellence Model  Helps focus management on running change and improvement activities and continuously improving their business.  Provide feedback and external, objective perspective for future change  Lead global organisation and frame strategies, set and follow common targets and sustain corporate culture worldwide.  EFQM Excellence Awards brings external recognition – 1st company to submit a global business for EFQM Awards.  Model also plays a vital role in increasing motivation of the associates.

©EFQM 2014

Dr. Werner Struth, Member of Management Board  “We've been using the EFQM model now for over 5 years. It is clearly a mighty tool which assists us in leading our global company. The model nowadays is indispensable for us.”  EFQM Prize Winner

... Customer Satisfaction Actual

Target

100

CSI [%]

80

60

40

20

0 2006

2007

2008

2009

2010

2011 EFQM Prize Winner

©EFQM 2014

Bosch Diesel – Bari (Italy)

Dynamic Growth Revenue m€

18

Subsidiary in Japan

16

Member EFQM

14 12 10 8

120

80 60

Start commercial activities

6 4 2

Employees

100 Go Public

Agents in Asia

Subsidiary in Korea

Foundation

40 20

0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year ©EFQM 2014

Novaled´s Excellence journey 2013 • Data and information Security • Risk management

2010 • External assessment • R4E 5 stars

2008 • Self assessment • 3 projects successfully implemented

2011 2009

• Self assessment • 4 projects

• Self Assessment • 4 projects • EFQM Assessor training

2006 EFQM member

• 4 projects • ISO 9001

2012

2007 • First assessment • all employees trained

Creating the platform - Refining the platform - Sustaining Excellence ©EFQM 2014

Supporting your Journey ©EFQM 2014

EFQM Portfolio Learning from the Network Personal Development  Training at EFQM

Organisational Development EFQM Italia

 EFQM Assessor

 In House Training  Assessment &

Recognition

EFQM Tool Kit

©EFQM 2014

A typical Maturity Pathway

©EFQM 2014

Accompany Development EFQM Assessor Training Internal Assessor Training

Strategic Assessor Training

Leaders for Excellence Basic Assessor Training Journey to Excellence

Ensuring you stay one step ahead EFQM Change leader programme Strategic assessment programme

Validator Training

Personal Development

Build on what you have learnt Two day workshop In-house Leaders for Excellence and Internal Assessor Training

A step in the right direction One day workshop In-house Journey to excellence

©EFQM 2014

Organisational Development

EFQM Levels of Excellence Over 600 Assessments Performed and Recognitions Delivered in 2014

EFQM Excellence Award

Recognised for Excellence – Assessment

Committed to Excellence – Assessment

Committed to Excellence – Project Validation ©EFQM 2014

Build the foundations

For High Performers

Chart your progress

Create Passion and Commitment

©EFQM 2014

AND CAN WE INVOLVE DIRECTLY THE EU MEMBER STATES? WHY NOT?

Europe 2020  Vision: 

EU to become a smart, sustainable and inclusive economy.

 How: 

Investing in knowledge, a low-carbon economy, high employment, productivity and social cohesion

©EFQM 2014

46

Assessing the UE - What have we done?  We set out to answer the question “Can you assess a country using the EFQM Excellence Model?”  We conducted the assessment based on a set of standard metrics that reflect the 9 criteria of the EFQM Excellence Model.  We chose the EU Member States as the sample as a wide range of information is publicly available, with standard definitions in place to ensure consistency. ©EFQM 2014

The Assessment Framework • • • •

Participation in education Risk of Poverty Voice & Accountability Human Development Index

• •

• • • • • •

• • •

House Price Index MPI. Market Performance Indicators

Unemployment Life Expectancy

Political Instability Financial Secrecy Open budget Judicial Independence

• • •

GDP per capita PPP International trade Government Deficit / Surplus

Labour Market Policy Expenditure Corruption International Investment Position

• • • •

• • •

Gross Fixed Capital Formation Digital Inclusion Fixed Broadband Volume of passenger transport • • • •

©EFQM 2014

Global Peace Index Greenhouse gas emissions and air pollution Emigration

Health care expenditure Investment in Education & Training Social Protection Expenditure R&D Expenditure

Principle Data Sources:  Eurostat  European Central Bank  World Economic Forum  World Bank  The Economist

The Ranking…. Top half 1 2 3 4 5 6 7 8 9 10 11 12 13 14

©EFQM 2014

Bottom half Denmark Germany Finland Netherlands Luxembourg Belgium Sweden Austria France UnitedKingdom Ireland Slovenia Malta Slovakia

784 744 725 701 693 672 669 636 612 600 599 518 510 508

points points points points points points points points points points points points points points

15 16 17 18 19 20 21 22 23 24 25 26 27 28

Italy Portugal Estonia CzechRepublic Cyprus Hungary Spain Poland Latvia Lithuania Croatia Romania Bulgaria Greece

501 491 490 484 468 458 440 430 420 413 399 382 347 300

points points points points points points points points points points points points points points

Focus on… Germany  Strong financial position compared to the rest of the world, with the highest International Investment Position in the EU  Unemployment shows favourable trends, which is particularly impressive when compared to other countries in the European Union  Investment in education is lower than other European economies  Expenditure in social protection is also lower, especially when compared to its neighbours (France, Netherlands, Austria and Belgium)

©EFQM 2014

2# 100 90 80

70 60 50 40 30 20 10 0

Germany EU Average EU Max EU Min

Focus on… Lithuania  Lithuania is one of the countries that produces less Greenhouse Gas Emissions and air pollution.  Decreasing trend of Unemployment particularly impressive compared to other countries in the European Union.  Gross Domestic Product per capita, PPP, is bellow the average of EU member states but shows positive and promising trends.  Investments into the country’s infrastructure, including healthcare are very low.  Expenditure in social protection is very low and similar to countries like Estonia, Latvia or Poland.

©EFQM 2014

24 # 100 90

80 70 60 50

40

Lithuania

30

EU Average EU Max

20 10

0

EU Min

MORE INFORMATION: WWW.EFQM.ORG [email protected] ©EFQM 2014

EFQM COMMITTED TO SUSTAINABILITY ©EFQM 2014

The Development Team

©EFQM 2014

54

Committed to Sustainability Assessment Key Results

Governance Risk Management Ethical Purchasing

Strategic Outcomes Perception & Feedback Reporting Progress

Product Lifecycle

Profit

Design In-Use End of Life

Strategy

Environmental Footprint Society Biodiversity

©EFQM 2014

Planet

People

Training & Development Life at Work Diversity

Simple Enabler Map Supplier Management

Environmental Management

Risk Management

End of Life

Vision, Mission & Values ©EFQM 2014

Purchasing Policies

Life at Work

In-Use

Social Contribution

Stakeholder Needs

Financial Governance

Employee Development

Product Design

Biodiversity

Employee Survey

Diversity

External Reporting

Planning Process

Management Reporting

Target Setting

How does it work…?

Complete the Submission

• 8 to 10 pages • Simple overview of your organisation and a description of your key approaches

1 Day Assessment on site

• Team of 2 independent Assessors • Standard site visit plan • Individual interviews or small groups • Feedback on key findings from the Team

Please Note: Unlike C2E Assessment, the Assessor Workbook is calibrated to 500 points NOT 600 points ©EFQM 2014

Feedback Report

• Identifies your key strengths & opportunities to improve • Scoring profile against the EFQM Excellence Model

Outcomes Please Note: 3 Star level is VERY high and MUST be approved by EFQM before being issued.

Committed to Sustainability 3 Star (Over 300 points)

Committed to Sustainability 2 Star (Over 200 points)

Committed to Sustainability 1 Star (Over 100 points)

©EFQM 2014

Guide Calibration: To get 3 Star, an organisation would be scoring over 60 points in criterion 8 in a full EFQM Assessment.

Benefits (for EFQM & Partners)  Allows us to target organisations “doing sustainability” but NOT using the Model.

 Creates clear path from C2S to R4E recognitions for organisations wanting to progress  As well as “non-users”, can be used for more mature organisations to focus on “improving criterion 8 scores”  Can use existing assessor pool to support the implementation, plus tap into the local UNGC Networks  We will be developing a Sustainability Assessor Training in the new year to support this ©EFQM 2014

Standard Site Visit Plan Assessor 1

Assessor 2

9:00

Strategy & Key Results (Management Team)

10:30

Break / Assessor Consolidation

11:00 12:00 13:00

Planet

Profit Break / Assessor Consolidation

People

Products

14:00

Break / Assessor Consolidation

14:30

Focus Group OR CoP review

15:30

Consolidation / Prepare feedback

16:30

Closing Meeting

17:00

Finish

N.B. If the organisation is a UNGC signatory, the Focus Group is replaced by a review of their CoP

©EFQM 2014

FABER – C2S Assessment 1

Feature 4P’s – People, Planet, Profit & Products

2

Independent feedback

3

Gain External Recognition

©EFQM 2014

Advantage Holistic overview of sustainability strategy

Benefit End Result Ensure all relevant Sustainability areas are becomes part of addressed “the way you work”. Gain additional Ensure Increased impact insights into sustainability of your actions strengths and OFIs approaches are effective Proves your Increased Enhanced sustainability stakeholder reputation strategy delivers confidence real benefits

Who is it for? Organisations not using the EFQM Model

Organisations with EFQM Recognition

 Virtually all large companies have a sustainability program

 Most organisations using the Model do not score well in criterion 8  This applies to 5 Star R4E, EFQM Award Finalists and even some EFQM Prize Winners  The Committed to Sustainability assessment can be used to gather specific feedback in this area to improve their performance

 There are many tools available but most are focused on producing a “Sustainability Report”  If an organisation is performing at a high level, the next step would be EFQM Recognised for Excellence ©EFQM 2014