The EFQM Model, developed by the European Foundation for Quality Management, is a globally recognized management framework used by organizations to manage change, drive performance, and achieve sustainable success.
It’s a non-prescriptive framework that provides a holistic view of an organization, helping it to understand its strengths, identify areas for improvement, and create a roadmap for excellence.
Key Concepts of the EFQM Model (2020 Version)
The latest version of the EFQM Model, introduced in 2020, is structured around three key questions: Why?, How?, and What? These questions form the core of its framework, which is divided into seven criteria.
1. Direction (Why?)
This dimension focuses on an organization’s reason for existence and its strategic direction. It addresses:
- Criterion 1: Purpose, Vision and Strategy: Why does the organization exist? What is its purpose, vision, and strategy? This criterion emphasizes creating an inspiring purpose and a clear strategy to deliver on it.
- Criterion 2: Organizational Culture and Leadership: How does the organization’s culture and leadership support its purpose and strategy? This focuses on the role of leaders in shaping a culture of integrity, trust, and excellence.
2. Execution (How?)
This dimension outlines how an organization delivers on its purpose and strategy. It focuses on the practical application of its plans.
- Criterion 3: Engaging Stakeholders: How does the organization engage with its stakeholders (customers, employees, suppliers, etc.)? This highlights the importance of building and maintaining mutually beneficial relationships.
- Criterion 4: Creating Sustainable Value: How does the organization create sustainable value for its stakeholders and the wider community? This criterion emphasizes social and environmental responsibility, moving beyond just economic results.
- Criterion 5: Driving Performance and Transformation: How does the organization drive performance and transformation? This addresses the use of data, technology, and agile practices to improve and innovate.
3. Results (What?)
This dimension focuses on what an organization has actually achieved.
- Criterion 6: Stakeholder Perceptions: What are the perceptions of the organization’s key stakeholders? This includes measuring their satisfaction and engagement.
- Criterion 7: Strategic and Operational Performance: What are the key performance results? This looks at both the achievement of strategic goals and the day-to-day operational performance.
The RADAR Assessment Tool
A central component of the EFQM Model is the RADAR assessment tool. This acronym stands for:
- Results: What are the desired results the organization wants to achieve?
- Approach: What are the planned approaches to achieve these results?
- Deployment: How are these approaches implemented across the organization?
- Assess and Refine: How are the results and approaches reviewed and improved upon?
The RADAR logic creates a continuous cycle of improvement, encouraging organizations to constantly learn, adapt, and refine their processes based on feedback and performance data.
Evolution of the Model
The EFQM Model has evolved significantly over the years to stay relevant in a changing world. The 2020 version shifted from being a simple assessment tool to a comprehensive framework for transformation. It places greater emphasis on agility, sustainability, digital transformation, and the importance of a strong organizational culture. This new model is less prescriptive than its predecessors and is designed to help organizations navigate disruption and achieve long-term success.