Business Excellence Model of EFQM is based on the premise that Excellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Strategy, that is delivered through People, Partnerships and Resources, and Processes.
Little do the companies realize that, in fact, it means excellent results with respect to all stakeholders and high level of confidence of stakeholders that excellent results will be sustained in future as well?
What is business excellence any way – an initiative or department?
Typically implementation of Business Excellence Model remains a responsibility of a group dealing with TQM initiatives and the model is used once in a while to measure TQM efforts. This is the closest the model ever reaches a business. These groups of people who are responsible for driving the model in the company typically “coordinate” or “facilitate” implementation of Business Excellence initiatives, such as Six Sigma, benchmarking etc. Instead of focusing on issues that would really drive the business towards sustainable excellence, the TQM or BE groups focus on excellent initiatives such as Six Sigma, KM, benchmarking and so on and so forth, which are applied at every nook and corner of the company. Instead finding ways of drilling concepts of excellence into the value system of the company, the whole focus of TQM group remains on “implementation” of these initiatives in all departments.
Typically implementation of Business Excellence Model remains a responsibility of a group dealing with TQM initiatives and the model is used once in a while to measure TQM efforts. This is the closest the model ever reaches a business. These groups of people who are responsible for driving the model in the company typically “coordinate” or “facilitate” implementation of Business Excellence initiatives, such as Six Sigma, benchmarking etc. Instead of focusing on issues that would really drive the business towards sustainable excellence, the TQM or BE groups focus on excellent initiatives such as Six Sigma, KM, benchmarking and so on and so forth, which are applied at every nook and corner of the company. Instead finding ways of drilling concepts of excellence into the value system of the company, the whole focus of TQM group remains on “implementation” of these initiatives in all departments.
Over a period of time these initiatives find their way on to the performance scorecards and targets of the departments as number of benchmarking projects, and things like that along with the real indicators that drive the business. Business reviews are conducted where business performance is reviewed and so are these “extras” with out a correlation between the two. All this results in a syndrome of “After taking care of business we need to take care of business excellence initiatives also” among the managers of line functions.
Now when you ask a manager from line function, “What is Business Excellence?” Typical answer could be “an extra item – a duplicity”, “an initiative” or “even a department”.
After all, where does the Business Excellence Model fit in?
Traditionally, excellent are those companies where leaders have had a unique philosophy to run their business. In doing so these leaders ingrain their philosophy into the people to such an extent that the organization as a whole understands the purpose of being in the business. In today’s changing scenario of opportunities and risks, companies come up, capitalize on the opportunities and fade away as the scenario shifts. They are lost in the maze of constantly shifting dynamics of market forces and priorities of shareholders and customers. These companies are unable to redefine their mission and in the process re-invent themselves. This is where Business Excellence Model comes into picture. For companies where the management system is just about improving productivity and profits, business excellence model can fill the intellectual void at the top. An understanding of the model can help top management to understand and align stakeholders expectations with core business results. This helps in understanding of long term drivers of the business and whole management system gets revamped based on the concepts of excellence. When this happens you find that business excellence ceases to be an initiative and becomes a way of life. It permeates through the value chain of the company, instead of being a parallel system or a duplicate system.
Traditionally, excellent are those companies where leaders have had a unique philosophy to run their business. In doing so these leaders ingrain their philosophy into the people to such an extent that the organization as a whole understands the purpose of being in the business. In today’s changing scenario of opportunities and risks, companies come up, capitalize on the opportunities and fade away as the scenario shifts. They are lost in the maze of constantly shifting dynamics of market forces and priorities of shareholders and customers. These companies are unable to redefine their mission and in the process re-invent themselves. This is where Business Excellence Model comes into picture. For companies where the management system is just about improving productivity and profits, business excellence model can fill the intellectual void at the top. An understanding of the model can help top management to understand and align stakeholders expectations with core business results. This helps in understanding of long term drivers of the business and whole management system gets revamped based on the concepts of excellence. When this happens you find that business excellence ceases to be an initiative and becomes a way of life. It permeates through the value chain of the company, instead of being a parallel system or a duplicate system.
So, at the top is top management’s realization that business does not have strong foundation of beliefs and purpose. The next step is top management’s openness to understand the “common sense” points of the model and apply them in their management system.
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