EFQM Excellence Model: A Guide to Total Quality Management

Introduction

Quality management comprises three core functions: identifying improvement opportunities, developing and monitoring indicators, and designing or redesigning products and services. The EFQM Excellence Model provides a framework for achieving progress in Total Quality Management (TQM).

The EFQM Model

The EFQM Model is built on the premise that customer satisfaction, employee satisfaction, and a positive societal impact are achieved through leadership in policy and strategy, effective personnel management, efficient resource utilization, and well-defined processes, ultimately leading to business excellence. Each of the nine elements within the model is evaluated and weighted to determine an organization's progress toward excellence.

Self-Assessment and External Audit

The EFQM Model utilizes self-assessment for companies aiming to qualify for the European Quality Award through an external audit. Self-assessment involves a comprehensive and systematic review of an organization's activities and achievements, benchmarked against the business excellence model. While typically applied organization-wide, self-assessment can also focus on a specific department, unit, or service. This process enables organizations to identify their strengths and areas for improvement, allowing management to address critical weaknesses and develop action plans for enhancement. External audits are conducted by specialized inspectors who apply the model and assess each criterion using a weighted scoring system.

Continuous Improvement

The EFQM Model promotes continuous improvement. Each criterion is divided into sub-criteria that can be used independently or in conjunction to evaluate an organization's progress toward its quality objectives.

Strategic Review of Company Management Systems

Environmental Analysis and Company Diagnosis

A strategic review requires environmental analysis and a company diagnosis. This involves documenting how the external environment impacts the company in terms of opportunities and threats. The SWOT analysis serves as a valuable tool for this comprehensive diagnosis.

SWOT Analysis

The SWOT analysis provides a holistic overview of the company and its environment. Goals are determined based on this analysis and the entrepreneur's vision. The strategy is continuously influenced by the environment, particularly the specific sector or industry in which the company operates. According to Ansoff, strategy consists of four key elements:

• Element 1: Description of element 1.
• Element 2: Description of element 2.
• Element 3: Description of element 3.
• Element 4: Description of element 4.