This is the first part in a series of three articles focused on Performance Excellence Models. We are comparing the Baldrige Performance Excellence Framework and the European Framework for Quality Management (EFQM) Excellence Model. The result is that we can show a higher level paradigm of similar best practices and approaches.
EFQM and Baldrige are the two best Performance Excellence Models in the world.
The Baldrige Program is the US private-public partnership dedicated to performance excellence. The Baldrige Performance Excellence Program develops and disseminates the Baldrige Evaluation Criteria which is issued in three versions targeting various sectors: 1. Business and non-profit, 2. Healthcare and 3. Education.
EFQM is the European Framework for Quality Management, a non-profit organization that helps organizations to become benchmarks for sustainable economic growth. In its 20+ years of existence, EFQM continues to drive improvements through its Excellence Model.
Both Baldrige and EFQM frameworks have three important components:
- Fundamental Concepts of Excellence (EFQM) / Core Values and Concepts (Baldrige)
EFQM: Adding Value for Customers, Creating a Sustainable Future, Developing Organizational Capability, Harnessing Creativity & Innovation, Leading with Vision, Inspiration & Integrity, Managing with Agility, Succeeding through the Talent of People, Sustaining Outstanding Results
Baldrige: Organizational and Personal Learning, Valuing Workforce Members and Partners, Agility, Focus on the Future, Managing for Innovation, Management by Fact, Social Responsibility, Focus on Results and Creating Value, Systems Perspective
- Enablers (EFQM) / Criteria (Baldrige)
EFQM: Leadership, Strategy, People, Partnership & Resources, Processes, Products & Services
Baldrige: Leadership, Strategic Planning, Customer Focus, Measurements, Analysis and Knowledge Management, Workforce Focus, Operations Focus
- Results – both EFQM and Baldrige
EFQM: Customer Results, People Results, Society Results, Business Results
Baldrige: Product and Process Outcomes, Customer-Focused Outcomes, Workforce-Focused Outcomes, Leadership and Governance Outcomes
As we look at the important components of Baldrige and EFQM excellence models, we notice similarities and a higher level paradigm of best practices. To help identify the “meta-themes” in the excellence models, let’s see their components side by side:
Fundamental Concepts of Excellence / Core Values and Concepts
| EFQM: Fundamental Concepts of Excellence | Baldrige: Core Values and Concepts |
| Adding Value for Customers | Organizational and Personal Learning |
| Creating a Sustainable Future | Valuing Workforce Members and Partners |
| Developing Organizational Capability | Agility |
| Harnessing Creativity & Innovation | Focus on the Future |
| Leading with Vision, Inspiration & Integrity | Managing for Innovation |
| Managing with Agility | Management by Fact |
| Succeeding through the Talent of People | Social Responsibility |
| Sustaining Outstanding Results | Focus on Results and Creating Value |
| Systems Perspective |
Themes in Performance Excellence Concepts:
Agility.
There is an increase need of agility for any organization. The need of being able to quickly adjust to global challenges while continuing to create value and sustain efficiency in the overall system is not a trivial job.
Sustainability.
Sustainability is usually found in three dimensions: People, Planet, and Profit. Also known as “triple bottom line” approach these days, there is increased pressure for organizations to show their responsibility toward people (communities and workforce) and environment while being able to sustain the business in long term. There is a general awareness and interest, facilitated by the global, instant communication in ensuring strong social responsibility along the entire value chain: more and more companies have to re-consider their suppliers because of the treatment of their workforce. More and more companies have to comply with environmental requirements related to climate change.
Innovation and future focus.
The challenges discussed above can only be addressed with innovative thinking that should be part of the day-to-day business. Innovation has to be part of the DNA of the organization: from small, continuous improvements of processes, to breakthrough innovation resulting in new services and products.
A learning organization.
A learning organization continuously is developing its capability. Creating a culture of innovation is one aspect of a learning organization that has in place a system to assess current and future capability needs and is able to adjust and continuously evolve in fostering empowerment and engagement of its people.
Results focus.
Used to be for mainly in decision making (management by fact in Baldrige). There is an old saying “you cannot manage if you don’t measure”. Both EFQM and Baldrige have the Results category as an important component of their respective models. There is strong emphasis in both models for the organizations to understand and use the alignment between what they say is important to them, what they do and their results. Baldrige has a core value of “management by fact”; EFQM has “results focus”.
Customer value.
To create customer value, an organization has to understand really well what value means to its customers. This is not a static dimension. As Kano model suggests, the delighters of today are the “must haves” of tomorrow. An organization is able to continuously create customer value only when it has the system of processes in place to manage and re-assess what is important to customers. Understanding “voice of the customer” is only the first part. Being able to deliver in an effective and efficient way is the second part. Baldrige framework calls out “managing by fact” and “systems perspective”; those create a strong foundation for delivering value.
Any organization built and driven by Performance Excellence Concepts as described above has the essential ingredients for a successful, sustainable business.
In the next articles we’ll continue the comparison of the other components: Enablers (EFQM) / Criteria (Baldrige) and Results.
References:
- Baldrige: http://www.nist.gov/baldrige/index.cfm
- EFQM: http://www.efqm.org/en/Home/tabid/36/Default.aspx
Biography:
Adina Suciu CSSBB, CMQ/OE, is principal consultant at Adav, LLC a Seattle based company focused on helping people and organizations to attain and sustain agility. She is also a Baldrige examiner and assessor for the European Framework for Quality Management. She can be reached at adina@adavconsulting.com and at 206.234.8014.