This is the third part in the 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 and we show a higher level paradigm of similar best practices and approaches.
EFQM AND BALDRIGE MODELS
EFQM and Baldrige are the two best in the world Performance Excellence Models.
In Part I we covered the Fundamental Concepts of Excellence (EFQM) / Core Values and Concepts (Baldrige).
In Part II we covered the Enablers (EFQM) / Process Categories (Baldrige).
In this article, Part III, we’ll cover the Results.
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
2. Enablers (EFQM) / Process Categories (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
3. 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
SIDE BY SIDE COMPARISON OF THE MODELS
To help identify the “meta-themes” in the excellence models, we are looking at their components side by side:
Fundamental Concepts of Excellence / Core Values and Concepts are covered in Part I
Enablers / Criteria Categories are covered in Part II
RESULTS
| EFQM: Results | Baldrige: Results |
| Product and Process Outcomes | |
| Customer Results | Customer Focused Outcomes |
| People Results | Workforce-Focused Outcomes |
| Leadership and Governance Outcomes | |
| Society Results | |
| Business Results | Financial and Market Outcomes |
THEMES IN RESULTS
Customer
Organizations would not exist without customers. Excellent organizations will measure customer perceptions to assess:
- Reputation and image
- Customer service, relationship and support
- Customer loyalty and engagement
Aside from these dimensions explicitly listed in both criteria, Baldrige has a separate category of results: EFQM Customer Results also includes the following items that are addressed in Baldrige under Product and Process Outcomes:
- Customer-Focused Product and Process Results
- Operational Process Effectiveness Results
- Strategy Implementation Results
PEOPLE / WORKFORCE FOCUSED / LEADERSHIP OUTCOMES
As we see in the table, EFQM’s People Results maps to Workforce-Focused Outcomes and Leadership and Governance Outcomes in Baldrige. Measurements in this category support the management and understanding of Perceptions and Performance Indicators. Measures include:
- Satisfaction, involvement and engagement
- Motivation and empowerment
- Competency and performance management
- Training and career development
- Working conditions
- Involvement and engagement activities
- Competency and performance management activities
These are results covered in Workforce-Focused Outcomes in the Baldrige Criteria. The People Results in the EFQM, the framework also includes measurements related to Leadership that are addressed in the Baldrige under Leadership and Governance Outcomes. These measurements include:
- Leadership and management
- Effective communication
- Leadership performance
In addition, Baldrige also analyses Leadership results for governance, Law and Regulations and Ethics. These results are covered in EFQM under Society.
Society Results (EFQM) is covered in Baldrige under Leadership and Governance Outcomes. The Society item addresses organization’s societal responsibility described in the profile and might include environment and labor practices. Society Results in EFQM specify:
- Environmental impact
- Image and reputation
- Societal impact
- Workplace impact
- Awards and media coverage
BUSINESS RESULTS / FINANCIAL & MARKET OUTCOMES
Financial performance is a key outcome measure that is managed by organizations. Baldrige Criteria also has Market outcomes. The EFQM Business Results also includes:
- Business stakeholder perceptions
- Volume of key products of services delivered
- Key process outcomes
- Project costs
- Key process performance indicators
- Partners and supplier performance
- Technology, information and knowledge
These items are addressed in the Baldrige criteria under Leadership and Governance Outcomes and Product and Process Outcomes.
Conclusions
In the three articles on Performance Excellence, we discussed the “meta-themes” in the two world class frameworks: Baldrige and EFQM.
The frameworks are not checklists; their main purpose is to offer a complete reference system to support organizations to achieve their strategic goals and maintain high performance. Aside from providing enablers / process categories and results showing processes and measurements of high performance, these frameworks also describe a scoring system that reflects the maturity of these approaches and measurements in support of organization’s strategy. The scoring system is used by examiners / assessors, but it is also a good gage for self-assessment
For the Enablers (EFQM) / Process Categories (Baldrige), the elements analyzed are as follows:
| EFQM | Baldrige |
| Approach | Approach |
| Deployment | Deployment |
| Assessment & Refinement | Learning |
| Integration |
Approach refers to the methods used by the organization to describe a process. To achieve high performance, organizations would strive to have approaches that are systematic and sound, well deployed, with evidence of organizational learning and integration.
For Results, the elements analyzed are as follows:
| EFQM | Baldrige |
| Relevance & Usability | |
| Levels | |
| Trends / Targets | Trends |
| Comparisons | Comparisons |
| Confidence | Integration |
Both Baldrige and EFQM criteria are including Levels, Trends, Targets and Comparisons as elements of analyzing results. Baldrige also uses “Integration” which describes the extent to which: results address important requirements identified by the organization as key factors (often through segmentation), results include valid indicators of future, results are harmonized across processes and work units to support organization-wide goals (integration). These aspects are also part of the EFQM under “Scope and Relevance”, “Integrity”, “Confidence”.
There should be a clear evidence of how the results are used to understand the cause and effect between processes and outcomes. The results should also provide the confidence of future performance.
Although not identical, Baldrige Performance Excellence Criteria and EFQM Framework cover all aspects of high performance. These non prescriptive systems continue to be validated by the real experience of many organizations and give organizations the freedom to choose what works best for them while providing the confidence of a holistic and complete framework. The reader is encouraged to see award recipients testimonials available at the links listed in References.
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.