EFQM operates on a fiscal year aligned to the calendar year. This document has been produced with the

figures up to the end of 2011, following the audit of the financial figures by KPMG in February. As the

annual Employee Engagement and Member Surveys are run during the 1st quarter, we include the latest

figures for the 2013 survey.

We are committed to help organisations drive improvement through the EFQM Excellence Model, a

comprehensive management framework used by over 30,000 organisations in Europe.

To help you implement our Model, we provide training and assessment tools as well as recognition for high

performing organisations. But our real talent comes from gathering good practices and integrating those

within our portfolio.

We at EFQM, a not-for-profit membership Foundation founded in 1989, aim to share what works, through

case studies, online seminars, working groups, conferences and thematic events.

Sharing our member’s enthusiasm, their motivation and the results they achieve; that is what we work for.

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EFQM is a not-for-profit membership foundation based in Brussels, Belgium. We currently have 19

employees. With around 450 members covering more than 55 countries and 50 sectors, we provide a

unique platform for organisations to learn from each other and improve performance. EFQM is the

custodian of the EFQM Excellence Model, a business model which is helping over 30,000 organisations

around the globe to strive for Sustainable Excellence.

The Foundation was initiated in 1988 when 14 CEOs joined forces to develop a Management tool that

would increase the competitiveness of European organisations. Supported by the European Commission in

the European Quality Promotion Policy, the founding members created the EFQM Excellence Model to:

Stimulate and assist management teams in adopting and applying the principles of organisational

excellence

Improve the competitiveness of European Industry

Close the gap of competitiveness between Europe and the USA and Japan

As a non-governmental organisation EFQM does not

receive subsidies from the European Commission or

other governmental bodies. Our income is derived

from Membership fees, Training, Recognition,

Publications and licence fees from our Partners. The

contribution from each in 2012 is shown in the graph.

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In 2008, the Board of Governors agreed that EFQM should return to focusing on the 3 key strengths; the

Members, the Model and the Assessors. This resulted in a change of management and a change of

direction, putting the Model at the heart of everything we do at EFQM. In 2009, we developed a 3 year

strategy to support the deployment of the EFQM Excellence Model 2010, launched at the EFQM Forum in

October 2009. The EFQM Excellence Model is now on a 3 year review cycle, with the latest version being

launched in October 2012 at the EFQM Forum by our CEO, Marc Amblard, with support from the Board

Members and the Core Team who developed it.

We are now working towards the objectives defined in our next 3 year plan, which runs from 2013 to 2015.

Attract new members to EFQM and our Partners.

Increase member engagement and retention.

Strengthen network of Partners, increasing our EU coverage and support network.

Support the European Institutions and the recovery of the European economies.

Our overall goal is to achieve Financial Sustainability for the Foundation, enabling us to continue to pursue

our Vision and Mission. Achieving this is based on 4 strategic pillars and the foundation of a strong

organisation:

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In 2010, we achieved Committed to Excellence from Bbest, having re-established the regular self-

assessment and improvement cycle. In 2011, we achieved 3 Star Recognised for Excellence, also through

Bbest.

The commitment to continue this journey was confirmed in October 2012 when our current CEO, Marc

Amblard, agreed the goal of achieving 5 Star Recognised for Excellence by 2015 with the EFQM Board of

Governors.

Achievement Year

Gained Recognised for Excellence 2004

External Assessment Conducted 2008

Gained Committed to Excellence (through Bbest) 2010

Gained 3 Star Recognised for Excellence (through Bbest) 2011

Following our last assessment, the following improvements have been implemented to address the “areas

for improvement” identified:

Leadership

Revised vision, mission & values developed as part of the current strategic plan

Revised KPIs and monitoring systems to increase balance between leading and lagging

indicators

Strategy

Systematic review of business model and options as part of Strategic Review

Development of 3 year Strategy Plan (2013 to 2015)

People

Additional training to support Account Management (Sales Training and Project Management)

Partnerships & Resources

Development of Partners Dashboard to support review process

Implementation of Sharepoint (EFQM Intranet)

Processes, Products & Services

Process Model refined and deployed via Sharepoint

Use of SAP CRM to support Account Management and improve data analysis

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Effectively, any organisation can be a customer of EFQM. The majority of our delivery focuses on

organisations in the EMEA region but we do have partners, members and customers in Asia and South

America. EFQM delivers products and services to member and non-member organisations, both through

the direct channel (EFQM staff or contracted consultants) and the indirect channel (EFQM Partners).

Competitors can be grouped into the following categories and our understanding of the current general

trends for each area is summarised below:

Membership organisations - many membership organisations are struggling with retention, especially

during the current financial climate. The challenge is how they can demonstrate “value for money”.

Quality / Excellence Tools (e.g. Lean, Six Sigma, Balanced Scorecard) – in the 25 years since EFQM was

established, there have been several “waves” within the management community; a tool that has been

very popular for few years, peaked and then faded.

Certification bodies (e.g. ISO) – many organisations are required by their customers to have specific

certifications and standards. There are very few cases where adoption of EFQM is a requirement.

Training providers – EFQM is widely viewed as a “specialist training centre” for “quality managers”.

Attempts to promote courses outside of this area have proved difficult and resource intensive.

Conference organisers – there are numerous events and conferences run each year on “excellence”

topics, many by companies who specialise in this area. Attendance of events in general is declining,

partly because there is more choice but increasingly because technology is providing more efficient

networking platforms.

The EFQM Portfolio has evolved over the years and is now designed to help organisations at every step of

their journey. In line with our revised strategic focus, our products and services have been tailored to

support the systematic implementation of the EFQM Excellence Model in any organisation, regardless of

size, sector or maturity.

During 2010, we implemented the revised portfolio, aligned to the EFQM Excellence Model 2010. The

Model Brochure is now available in 14 different languages and a number of EFQM Training Courses are

available in local language through our partner organisations. A number of the products and services in our

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portfolio have been developed as collaborative partnerships with our members. These are practical tools,

techniques or trainings that have been proven to deliver results.

In 2011 we aligned the organisation structure to our core processes. In 2013, we refined this structure to

focus on strategic value streams, supporting our different delivery channels (Direct & Indirect). As a small

team, we work in a matrix structure, with direct reporting lines defined in the organisational chart.

EFQM delivers products and services directly to a variety of customers, both from member and non-

member organisations, and indirectly through a network of partners. A full description of the Partner

Model is included in the overview of the Partnerships & Resources criterion.

We developed a revised Marketing & Communications plan to support the 2010 to 2012 strategy. The

theme for the plan was “Communicating beyond the bubble”; effectively targeting and engaging groups

beyond our existing membership. The feedback we had collected indicated EFQM was viewed as “old

fashioned”, “traditional” and “a cliché”, both within and outside the members. The plan to address this

included changing the look and feel of our communications, our house style and developing new channels,

including social media and other Web2.0 tools. As a result, we have been able to structure which channels

we use to communicate which messages to which audience.

Increasing our visibility and reputation within the wider community, specifically academics and other key

influencers, remains a key issue; the future of the foundation rests on our ability to attract new members

and users for the Model. Extending our presence on the web, both in terms of the communications we

make and the number of people making reference to EFQM is at the heart of our communications plan.

In 2010 we published our first annual report, giving an overview

of our new strategy, our key results and our revised portfolio.

The general feedback from our stakeholders was extremely

positive; the report clearly demonstrated a new, transparent

approach to open communications and generating a dialogue

with the wider community. The second Annual Report (2010 –

2011) was published as an interactive PDF using one of the new

web-based publishing tools we have adopted, enabling us to track

the number of readers over time, segmented by geographical

location. To date, the 2011 - 2012 report has had over 37,000

views.

One of the areas highlighted for improvement in the Member

Survey was the “Sharing” element of our portfolio. Based on the

results and comments made, we have increased the focus on

sharing good practice identified through our recognition schemes;

giving our members the opportunity to showcase their

experiences through our events, webinars and Good Practice visits. Web2.0 tools making the sharing of

experience and the development of virtual networks easier than ever before; successfully exploiting these

tools will help EFQM reach a new audience and ensure the sustainability of the foundation.

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The EFQM Management Team comprises of:

Marc Amblard (Chief Executive Officer)

Geert Opdenbosch (Chief Financial Officer)

Matt Fisher (Chief Operating Officer)

This group meets weekly to review performance, discuss on-going activities and make decisions for current

affairs. Highlights and key decisions are posted on the intranet. In addition to the EFQM Management

Team, there are 2 bodies who oversee or advise the EFQM Management Team and ensure EFQM

maximises the added-value for its members.

The EFQM Board of Directors meets twice a year and provides the overall strategic direction for EFQM to

achieve its mission. The Board consists of the CEOs or very senior executives of several EFQM member

organisations. Some are from our founding members, others from organisations who have proven their

ongoing commitment through contributions and recognition through the Levels of Excellence. Each Board

Member is elected for a two year period. The Board elects the EFQM Chairman from among its Members.

The Board of Directors are:

Andreas Wendt, BMW (EFQM Chairman) Hans de Jong, Royal Philips Electronics

Robert Leloup, EDF Christoph Kübel, Robert Bosch GmbH Lars Aagaard Nielsen, Grundfos Holding A/S David Mills, Ricoh Europe

Marie Lindsay, St Mary’s College

The Board of Directors is supported by the Strategy Committee, which meets 4 times a year. It reviews

proposals for new initiatives, products and services and advise the Board of Directors. The Strategy

Committee Members are:

Andreas Wendt, BMW (Interim Chair, Strategy Committee)

Ferrie Aalders, Royal Philips Electronics

Dieter Butz, Robert Bosch GmbH

Mia Goetvinck, Ricoh Europe

Patrick Margaria, EDF

Ebbe Christensen, Grundfos

Guy Peeters, Solvay

Johann Simmel, BMW

EFQM’s finances and accounts are audited annually by an external accountancy firm, currently KPMG,

before being approved by the Board of Directors. The key financial results, in addition to other key non-

financial performance results, are publically presented in our Annual Report.

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For the EFQM to achieve sustainable excellence as an organization, we need to effectively execute the

strategies we have agreed. Our success depends on our ability to work together as a team to deliver the

objectives we have defined in the 3 year action plan. All our personal objectives should therefore be

aligned with the strategic objectives defined in this plan.

The appraisal process relies on evidence and examples to agree the performance levels achieved. This is

especially important for demonstrating behaviours and actions that have contributed, whether positively or

negatively, to the outcomes achieved. Understanding the impact of these personal behaviours is key to

ensuring the future success, both of the individual and for EFQM.

At the start of each 3 Year Plan, we review the

organisation structure to ensure alignment

with the strategic objectives. One of the most

significant changes was creating a single

Operations department in 2010 to increase

the coordination and efficiency of our

activities. All positions have a job description

and these are used to benchmark

compensation & benefits externally.

The revised structure is supported by our

competency model, which defines the

standard competencies for all EFQM

employees. These competencies are

reviewed, and training needs identified, as

part of the annual appraisal process, “Aim for

Excellence”.

EFQM Vision

EFQM Strategic Plan

3 Year Action Plan

Balanced Scorecard Objectives

Personal Objectives

Competency Profile

Personal Development Plan

Providing Excellent

Service to Members &

Partners

Ensuring EFQM’s Future Sustainability

Developing Our Talent

Adding Value for

Customers

Building Relationships

Ability to Solve Problems

Getting Results

Business Awareness & Commercial Approach

Planning & Organising

Effective Communication

Ownership & Accountability

Teamwork & Collaboration

Developing Self & Others

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Title Description Evidence Available

Linkages & Key Results

Owner

3a1 Organisation Structure

The final stage of the 3YAP development process is defining the people resources, both in terms of numbers and skills. These plans are then further developed as part of the annual budgeting process, including head count. Gaps identified are addressed through training or recruitment.

The organisation structure was reviewed at the end of 2012 and aligned with the strategic objectives.

Training Plans (3b1), Annual Budget (4b1)

Marc

3a2 People Engagement Survey

The first People Engagement Survey was conducted in 2009 and a number of improvements were implemented as a result of the information. We revised the survey in 2011 to align with the Gallup questions, enabling benchmarking with external organisations. It is run annually.

Full details of the process, including the questionnaire used, are available.

People Perception Results (7a)

Geert

3b1 Training Plans The training plans are developed as part of the Aim for Excellence Process. Training needs are identified based on the Competency Model and annual objectives.

These are included in the Aim for Excellence documentation.

Training Days per FTE (7b6)

Geert

3b2 Appraisal Process Formal appraisals are conducted for all staff bi-annually, with regular one to one discussions throughout the year. The appraisal includes what they have achieved against their objectives and how have been achieved, against the competency model.

This is part of the Aim for Excellence process. Examples are available on-site.

Discuss performance regularly (7a3)

Geert

3b3 Knowledge of the Model

Since 2010, we have been including EFQM product knowledge in the personal development plans. This includes acting as Assessors and Trainers.

This is included in the Aim for Excellence planning tool.

EFQM Assessors (7b3), Internal Training Capability (7b4)

Matt

3c1 Alignment of Personal Objectives

The KPI Tree ensures clear alignment between strategic and personal objectives, ensuring people understand how they contribute to the overall success of EFQM.

Alignment can be checked on site, in line with the KPI Tree.

Clear about personal objectives (7a2), Everyone works towards the same goal (7a6)

Geert

3c2 Recognition Pyramid

As one of our C2E improvement projects in 2010, we developed the Recognition Pyramid. This includes financial and non-financial recognition for all employees. This was reviewed in Feb-13.

The project plan is fully documented as part of our C2E submission.

Measures included in Engagement Survey

Geert

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Title Description Evidence Available

Linkages & Key Results

Owner

3d1 Monthly Staff Meeting

In 2009, we established a Monthly Staff Meeting for all EFQM staff. This provides an opportunity for discussions, as well as an update to all people on key actions, initiatives and current results.

Agenda & presentations from the meetings are available.

Kept aware of what’s happening (7a4)

Geert

3d2 Operations Meeting

We have a bi-weekly Operations Meeting, where the everyone can exchange information on current activities, new leads, etc.

Minutes from these meetings are available.

Portfolio Promotion Process (5c1), Account Management (5d2)

Matt

3d3 Visual Management

A chart indicating our current performance against our KPIs is displayed in the office and on the home page of our Intranet. The details are discussed at the Monthly Staff Meeting.

This can be demonstrated on-site.

Working towards the same goal (7a6)

Marc

3e1 Reward & Benefits

All positions have a job description and, based on this, reward & benefit packages are benchmarked and aligned with the market. In 2011, individual Total Reward Statements were produced for the first time.

Full documentation is available on-site.

Operating Expenses (9a3)

Geert

3e2 Work Environment

In 2011, a team was asked to rearrange the office layout to support the new structure; we have an open plan office to encourage collaboration between teams.

A visit to EFQM’s office is the best way to experience our excellent facilities.

Questions on the working environment are included in the Engagement Survey

Geert

3e3 Collective Bonus The Management Team agree a number of overall targets which are included in the Collective Bonus scheme. The bonus amount is the same for all staff, if the objectives are achieved, to focus all staff on common goals.

Details of the collective bonus scheme can be explained during the site visit.

Everyone works towards the same goal (7a6)

Geert

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Our people are one of our key assets, along with the Model, our Members and the Assessor Community.

Since 2009, we have been reviewing and improving our people management processes, including the

introduction of the Engagement Survey (2009) and the Aim for Excellence appraisal process (2011).

In 2011, we reviewed the Engagement Survey process. The previous questionnaire used was shortened

and, following discussions with the team, we stopped the structured interviews that were being conducted

by a 3rd party and used to provide additional qualitative data. The questionnaire adopted in 2011 focuses

on the engagement questions originally developed by Gallup and used by many organisations, enabling us

to benchmark our results externally. As the survey originally used had included many of the same topics,

we have been able to maintain the trend data in most areas.

The Engagement Survey focuses on a small number of questions that address an employee’s “basic needs”,

“manager support”, “Teamwork & Belonging” and “Mutual Growth”. These are based on the Maslow

Pyramid of human needs. Gallup state that a “healthy organisation” has a ratio of 4:1 engaged to

disengaged employees. Our key target for the 2011 survey was to achieve this “healthy ratio”. In fact, we

had no disengaged employees in 2011 or 2012, so we have achieved this target. We have set targets to

improve on the previous year’s score as we are now exceeding the benchmark we have. In 2013, when the

new EFQM People Perception benchmark report is available, we will review are target in line with the

“Finalist” level.

We have chosen to benchmark with Ricoh Belgium for a number of reasons:

They are recognised as a leading

organisation in Belgium.

They use a similar questionnaire to us,

based on the Gallup Model.

They are located close to us, so their

employees live and work in the same

economic, social and political environment.

They have been undergoing a significant

restructure, starting at roughly the same

time as the restructure in EFQM began.

Ricoh switched to a bi-annual survey cycle in

2013; as a result no data is available for 2012.

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7a. Perception Measures

In 2009, the future direction of EFQM was not clear. The introduction of the 3 Year Plans (2010) and Aim

for Excellence (2011) have led to increasing scores in questions relating to the overall direction (7a1) and

clarity of personal objectives (7a2). Trends compare well with the external benchmark used.

The Aim for Excellence process launched for all staff in 2011 (1d2). As part of this deployment, all staff

have regular performance reviews, both formally and informally (7a3). We have also focused on improving

internal communications (7a4), including the monthly Staff Meeting (3d1).

The Aim for Excellence process includes assessment against the standard competencies and the

development of training plans. This has led to better targeting of training and development (7a5). One

area we are still focusing on is ensuring people cooperate effectively and work together effectively to

ensure the ongoing success of EFQM (7a6). Team objectives were introduced in 2012, as was the

Operations Meeting (3d2), and the matrix structure introduced in 2013 should further improve this area.

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7b. Performance Indicators

The largest expense for EFQM is our people costs; we have to carefully manage our headcount (7b1) to

optimise operational demands with available funds. The headcount budget is set as part of the Annual

Budgeting process (4b1). We have set a target of 6% for employee turnover, based on a “healthy rate”.

Voluntary Turnover (7b2) has stabilised since the end of 2010, enabling us to focus on developing both our

people and portfolio.

As part of the revised strategy, we have focused on developing our people’s knowledge and practical

experience of using the Model (3b3). This includes active participating in assessments (7b3) and delivering

training (7b4). In addition to increasing internal knowledge & capabilities, this helps us balance our delivery

costs against income; directly contributing to our Net Income (9a4).

Although we measure employee sickness rates (7b5), we only actively manage it when we feel there is a

specific issue so it is therefore not included in our KPI reporting. Currently absence rates are in-line with

the Belgian Average (figures from EWCO 2010 report). The measure for training days (7b6) only includes

formal training courses attended as reporting against this is required by Belgian law; the target reflects the

legal minimum of 2 days.

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EFQM is a membership organisation. We rely on input, ideas and suggestions from you to create a vibrant

community. Without the contributions of our members, the network would not work. These are some of

the ways you can contribute:

We created The EFQM Network for Sustainable Excellence to facilitate a dialogue between our peers and

the wider community. The group is open to anyone with an interest in this area. Over 4000 individuals

have already joined our group and shared their experiences. If you’ve got a question, it’s a great place to

start.

Organisations can join the EFQM member community and enjoy some exclusive benefits such as access to

free assessment and improvement tools, participation to events, themed webinars and good practice visits.

To learn more about our member community, feel free to contact us or to join one of the free introduction

meetings at our offices in Brussels. Member benefits include:

Expert advice to plan & support your organisation’s journey towards excellence. Access to the EFQM Knowledge Base with free-to-download assessment-, management- and

improvement tools; as well as Case Studies & Good Practices from award winning organisations. Learning from peers through webinars, conferences and visits. Extending your professional network. Gaining recognition for your organisation’s achievements. 20% discount on EFQM Products & Services, including Training, Events, Publications and Assessments. Regular newsletters, giving the latest information on what’s happening in and around the excellence

community.

For more information, please e-mail us at info@efqm.org

Avenue des Olympiades 2

5th Floor

B-1140 Brussels – Belgium

Tel : +32 2 775 3511

Fax : +32 2 775 3535

Email : info@efqm.org

http://www.efqm.org