Lean EFQM: A Three-Dimensional Approach to Designing Excellence Measures

Amir BolboliDr. Markus Reiche

Agenda

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Effective implementation of EFQM can lead to short/long term performance improvement (Leicester Study on EFQM)

Failure rate reported in recent studies: 60 % (Karani & Bichanga 2011)

Lack of implementation know-how Difficulties for changing the culture

Background

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• Culture change is extremely complicated (change of generation or ownership structure)

• Culture is a complex, cannot be holistically assessed (limiting to a particular

target required)

• Organizations with different capability need to start at different steps

Background

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• Today’s business environment requires progressive improvement strategies with short reaction time

• EFQM implementation can be much easier and more effective if the selected measures demand less cultural change and are aligned to the organizational capability

Background

Sustainable Excellence

EFQM Model

Maturity Level

Corporate Culture

Lack of know how for deriving measures from EFQM criteria using the RADAR logic

It is not clear:… which cultural dimensions are relevant for selecting EFQM measures…how to integrate culture assessment in design of EFQM measures

It is not clear:…to which extend the organization is capable to work with EFQM contents …which tools/aims to determine maturity level

Problem Statement

• …to propose a way to design EFQM measures based on the RADAR logic

• …to develop an approach for selecting the firm specific EFQM measures based on the level of maturity and the existing culture

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Lean EFQM

Main objectives

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EFQM Criteria Model

http://www.efqm.org/efqm-model

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Fundamental Concepts of Excellence • foundation for achieving sustainable excellence• Guideline for top management

http://www.efqm.org/efqm-model

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RADAR logic

STRUCTURED APPROACH TO QUESTIONING THE PERFORMANCE

Determine the Results it is aiming to achieve

What are we trying to achieve?

Plan and develop an integrated set of Approachesto deliver the required results

How do we try to achieve this?

Deploy the approaches in a systematic way

How / Where / When was this implemented?

Assess and Refine the deployed approached based on monitoring and analysis of the results achieved and ongoing learning activities.

AR: How do we measure whether it is working? What have we learning and what improvements can be made?

http://www.efqm.org/efqm-model/radar-logic

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Concrete measures to realize the main focus (customer

perception management) based on RADAR logic are missing!

EFQM Sub-criterion 5e4

Monitoring & review of customer experiences and perceptions to ensure appropriate respond to any feedback

EFQM Sub-criterion 5e (areas for assessment 1-5)

Management of customer relationships

EFQM Criterion 5 (Sub-criteria a,b,c,d,e)

Processes, Products & Services

Lack of concrete RADAR-based measures/Break-down structure of EFQM criteria model

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Using RADAR for defining excellence measures

Requirements for culture assessmentin the context of the EFQM design

International scope without country-specific

focus

Categorization possibility (Scalability)

Compatibility with EFQM contents

Culture assessment for direction of the

company

Values or basic underlying assumptions

as the basis of the assessment

Simple application

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Assessment of existing culture assessment approaches

– The cultural dimension is highly relevant in the selection of EFQM measures.

– The cultural dimension has an average importance in the selection of EFQM measures.

– The cultural dimension has a low importance in the selection of EFQM measures.

– The cultural dimension is not relevant in the selection of EFQM measures.

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Qualitative assessment of cultural dimensions (Münstermann 2011,

Camern/Freemann 1991) in terms of importance for the culture based selection of EFQM measures

Six dimensions with high relevant to EFQM design have been selected

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1: Management Style

4: Organizational character

1a

1b

1c

4a

4b

4c

2c2b

2a6a

6b6c

5a5b

3b3a

Artifacts

values

underlying

assumptions

432 Culture types

Excellence-orientedCulture assessment Model

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Management Style

1a. Cooperative management style (facilitator, mentor, team builder) 1b. Ad hoc management (risk-taking, promotion of innovation and creativity) 1c. Delegative leadership (focus on results)

Error culture2a. error openness, and fault tolerance, the errors are not discussed. 2b. errors are not communicated. they bring penalties with themselves. 2c. error friendliness. Errors are seen as an improvement opportunity and constructively discussed in order to learn from them.

Information and communication

3a. open communication culture on most levels (between employees themselves and between managers and employees). With regard to the information gathering and dissemination-the whole company works as a team (very open information culture). 3b. closed communication and information culture on most levels.

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Organizational character

4.a. The organization is a place where everyone feels accepted in person. It's like one big family. Employees have a lot in common and share a lot with each other. 4.b. The organization is very results-oriented. The staff are very ambitious and achievement-oriented. 4.c The organization is heavily controlled and well structured. Formal procedures governing what people have to do.

Employee behavior

5.a. Most people find change processes negatively and oppose these processes 5.b. Most employees support the change processes and are involved according to their role and responsibilities (Barghorn 2010, p 100).

Orientation of the company

6.a. Reliable service and properly initiated and implemented processes is referred as the company's success. 6.b. Success is defined in our more innovative and unique results (products, services). 6.c. Market gains are the essential basis for measuring the company's success.

Requirements for maturity assessmentin the context of the EFQM design

Understanding the eight basic concepts of EFQM and their

application

Determination of maturity level as

the main goal of the assessment

Defining the extent to which EFQM content can be

detailed

Scalability of assessment

Simple application without the need of

external support (low complexity)

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Requirements

Assessment method (content)

Simulation of external assessment

(Criteria, Subcriteria, fundamental

concepts, RADAR)

Improvement matrix

(nine criteria and 32 Sub-criteria)

Internal assessment workshop

(nine EFQM-Criteria)

Questionnaire

(eight fundamental concepts)

not applicable partially applicable applicable

Simple application

with low complexity

Legend:

Determination of

organization’s maturity

Understanding &

application of EFQM

fundamental concepts

Determination of

detailing level of

EFQM contents

Scalability

Assessment of existing self-assessment approaches

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Maturity Assessment survey based on EFQM fundamental concepts

1: Management Style

2: Error culture

3: Inf

orm

atio

n- &

Com

mun

icat

ion

4: Organizational character

5: General

orientation

6: e

mpl

oyee

beh

avio

r

1a

1b

1c

4a

4b

4c

2c 2b

2a 6a

6b 6c

5a 5b

3b 3a

Artefacts

values

underlying

assumptions

Culture dimensions

Determination of maturity level

Self-assessment by leaders

Understanding of fundamental concepts

Conclusion

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Thank you for your attention