The European Foundation of Quality Management Model - Research Paper Example

?Assignment 3 - A Business Report Executive Summary EFQM is one of the renowned self-assessment management frameworks, which bestows an organisation with a unique strategic direction for achieving long-term competitive position. The report aims to suggest the application of EFQM model within the business activities of Executive Bank plc by which the organisation can enhance its performance and also bring efficiency within its operational activities. Additionally, this report also shows three integrated components which can help Executive Bank to deliver excellent services to its potential customers by maintaining superior relationship with its business partners. Moreover, the report reveals the utilisation of EFQM model by other service organisations and its advantages that they have obtained. Through this model, other service organisations are able to bring efficiency within their business activities and also strategically improve their performance which assists them to deliver accurate services at the right time as per their clients’ requirement. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Executive Bank plc 5 Application of EFQM Excellence Model 6 Fundamental Concept of Excellence 6 EFQM Excellence Model 9 9 RADAR Logic 12 Utilisation of EFQM by Other Service Organisations 13 Conclusion 15 References 16 Introduction The European Foundation of Quality Management (EFQM) is recognised as a ‘self-evaluation framework’ in order to appraise the strengths and the improvement areas of an organisation throughout its entire business activities. Additionally, EFQM is also referred as an ‘Excellence Model’ which focuses upon what an organisation should do and what it will do in order to deliver excellent quality of products and services to its customers and respective stakeholders. Through the utilisation of this model, a majority of the public, private and voluntary sector organisation obtain benefits regarding the attainment of competitive advantage (EFQM, 2013). Moreover, EFQM is also considered as a non-perspective which does not comprise any strict rules and regulations. The model provides a broad as well as rational set of assumptions regarding what is exactly necessary for an effective organisation and its management practices. It has been noticed that every organisation can utilise this model in its own strategic way and enhance the performance areas by achieving long-term sustainability. EFQM is primarily considered as a non-profit foundation located in Brussels which was incorporated in the year 1988 by a group of leading European corporations. EFQM implies that excellent organisations can attain and sustain efficient levels of performance by which they can satisfy or exceed the level of their stakeholder expectations (Global Consulting, 2000; EFQM, 2013). The primary objective of this report is to depict the advantages of EFQM model if Executive Bank plc can utilise and implement it within its business activities. Additionally, this discussion also would depict the successful improvements made by other organisations that have already implemented EFQM model within their operational activities. Moreover, the report also provides certain recommendations regarding whether this Model can render a valuable framework for Executive bank plc in order to boost the organisational performance. Executive Bank plc Executive Bank plc is regarded as a bank that primarily focuses on premium customers’ particularly international travellers. The bank offers Gold Chargecard Service that facilitates its customers to join with a small amount of additional fee regarding their card protection scheme. Contextually, the card protection scheme generally renders insurance if the customers’ Gold Card gets misplaced or theft due to certain reasons. In addition, Executive Bank plc’s service schemes are quite unique and also dissimilar from the card services which are provided by the other banking organisations (Johnston & Clark, 2007). These services comprise a 24-hour global worldwide toll free number, a single call for cancelling all the cards and for placing an order for replacements and an insurance of ?1,000 in case of misuse or theft of card before notification. Moreover, the bank also provides interest free up to ?1,250 cash, in case of emergencies such as a customer gets stranded abroad. Through this card, customers can also make emergency replacement of their passport or driving license. Furthermore, this card also helps to make emergency payment of hotel bills up to ?500 and also to utilise in case of buying air tickets, which is up to ?1,000 (Johnston & Clark, 2007). Application of EFQM Excellence Model Fundamental Concept of Excellence Through the utilisation of EFQM Excellence Model, Executive Bank plc can easily attain competitive advantages, enhance its business performance and also improve its productivity as well as profitability. This model also can assist the organisation to streamline its operations, engage employees towards the improvement of their performance, enhance customer expectations as well as satisfaction along with facilitating to improve brand reputation (EFQM, 2013). Figure: Fundamental Concept of Excellence Source: (EFQM, 2013). The primary concept of excellence covers certain guidelines which are essential for the organisations such as Executive Bank in order to attain sustainable excellence. This concept can also be utilised in order to identify the attributes of superior organisational culture. Moreover, this concept comprises various aspects such as attaining balanced outcomes, adding value for customers, leading with vision, motivation and truthfulness, managing through certain procedures, development of creativity & innovation, building strong partnership and taking accountability for a sustainable future growth (EFQM, 2013). In order to obtain balanced outcomes, Executive Bank should identify and fulfil its mission which would assist the organisation to approach successfully towards its vision. This can be done by attaining a balanced set of outcomes by which Executive Bank can satisfy both short-term as well as long-term needs of its stakeholders. Additionally, it is necessary for Executive Bank to concentrate on the development of a key set of outcomes by which the organisation can scrutinise its development in relation to its vision, mission along with strategies (EFQM, 2013). In order to deliver high value products as well as services to the customers, it is necessary for Executive Bank to identify and comprehend the basic needs as well as expectations of its customers and also understand the primary reasons owing to which the bank will exist and why the organisation should strive to provide innovation and create value for its customers. Through this aspect, the company is able to communicate value proposition and meet the needs of its potential customers through its rendered products and services (EFQM, 2013). The leaders of excellent organisations always lead their followers with unique vision, inspiration and integrity by which they can shape their future performances and also play an active role for creating value and ethics within the organisational workplace. By considering this aspect, the banking organisation can implement unique leadership strategies which would facilitate to attain a comprehensive commitment from its stakeholders and also ensure future success for the organisation (EFQM, 2013). In order to create balanced business situations and attain sustained outcomes, it is necessary for Executive Bank to manage its entire operational activities with certain structures or procedures and also strategically align the structures by utilising rational based decision making system (EFQM, 2013). To be an excellent organisation, Executive Bank should always create value for its people or employees and create a unique culture of empowerment for attaining balanced outcomes and personal objectives of the organisation. In this regard, it is essential for Executive Bank to develop equilibrium amid the strategic requirements of the organisation and desire of its stakeholders by comprehending their commitment and engagement (EFQM, 2013). In order to develop creativity and innovation, Executive Bank should enhance its value and also the level of performance by continuously implementing systematic innovation that can help the organisation to incorporate the creative ideas of its stakeholders (EFQM, 2013). In relation to building strong partnerships, Executive Bank should identify, create and uphold effective trust based relationship with its various business partners that can ensure long-term business success. These mutual partnerships may be formed in terms of communities, customers, educational bodies, key suppliers and Non-Governmental Organisations (NGO) (EFQM, 2013). In order to take accountability regarding future sustainable success, Executive Bank should imbibe an ethical mindset and clear values with organisational culture that would help to maintain highest standards towards its employment behaviour. It also would help the company to attain sustainability in terms of social, economic and ecological aspects (EFQM, 2013). EFQM Excellence Model The EFQM Excellence Model facilitates managers or leaders to comprehend the causes as well as consequences derived relationships amid what their organisations actually do (Enablers) and the outcomes their organisation have attained. The EFQM model is primarily divided into two parts one is ‘Enablers’ and other one is ‘Results’. In relation to enablers, there are five aspects such as leadership, people, strategy, partnership & resources and procedure, products and services. In terms of results, there are four outcomes i.e. people results, customer outcomes, community outcomes and key results (EFQM, 2011; Paghaleh, 2011). Figure: EFQM Excellence Model Source: (EFQM, 2011). This model is non-perspective and can be implemented by any of the organisations either small-sized or medium-sized. In order to attain sustainable success, it is necessary for Executive Bank to develop strong leadership and appropriate strategic roadmap along with improving its people, business partnerships and procedures for delivering value added products as well as services to its potential customers (EFQM, 2011; Paghaleh, 2011). In relation to leadership, Executive Bank should develop unique leadership strategy by which it can shape its future business activities and also play the role of an inspiring leader in the business arena through focusing on creation of value and ethics at all times. It is the responsibility of the leader to influence the organisation in an efficient way so that it can operate in an accurate and timely manner in order to ensure continuous success for the organisation (EFQM, 2011; Paghaleh, 2011). To be an excellent organisation, Executive Bank should implement its mission and vision by creating stakeholder focused strategy. The organisation should develop strategies on the basis of understanding the needs and the anticipations of both stakeholders as well as external environment. It is also necessary for Executive Bank to develop strategies and supporting policies which should be reviewed and updated frequently in order to ensure economic, communal and ecological sustainability. In this regard, strategies and policies ought to be communicated and organised through planned procedures and objectives (EFQM, 2011; Paghaleh, 2011). Moreover, Executive Bank should create value for its people and also develop a unique culture through which the organisation can attain its personal objectives by maintaining mutually beneficial relationships with its business partners. To be an excellent organisation, it is the responsibility of Executive Bank to develop opportunities for its employees and also treat every member with fairness as well as equality along with providing them appropriate rewards and recognitions. In this way, the organisation can influence its employees to uphold their commitments in order to ensure that they utilise their skills and knowledge towards the benefits of the organisation (EFQM, 2011; Paghaleh, 2011). Executive Bank should appropriately plan and manage its external business partners, suppliers and internal resources in order to support its overall strategies, policies and bring efficiency within the operational procedures. Partners and suppliers should be managed in such a way so that the organisation can attain sustainable success (EFQM, 2011; Paghaleh, 2011). Additionally, it is also necessary for Executive Bank to design, manage and improve operational procedure so that it can increase the value for customers and other stakeholders. Moreover, the organisation should also improve its products’ quality and service delivery in order to deliver optimum value for its potential customers. By utilising this model, Executive Bank can enhance its Gold Card Protection Service by improving its existing service areas. Through this model, the organisation can recognise the exact needs of its customers prior to delivering Gold Card services (EFQM, 2011; Paghaleh, 2011). In order to attain superior customers’ feedback or outcomes, Executive Bank should develop and concur a set of performance indicators and related results by which the organisation can determine the appropriate utilisation of its strategies and supported policies on the basis of needs and anticipations of its customers and external business partners (EFQM, 2011; Paghaleh, 2011). In order to obtain superior communal and key outcomes, Executive Bank should also create a performance indicator by which it can also determine the utilisation of its strategies which are primarily focused on the needs and the anticipations of pertinent external as well as key stakeholders (EFQM, 2011; Paghaleh, 2011). RADAR Logic RADAR is considered as a dynamic evaluation framework and a dominant management tool that provides strategic support to an organisation in order to identify as well as overcome challenges along with assisting to attain sustainable excellence. Additionally, the RADAR logic delivers a structured approach for enhancing the performance of an organisation. This framework also facilitates to change and efficiently manage the overall operations of an organisation so that it can attain sustainable competitive position. The application of RADAR logic can assist Executive Bank to plan, implement, identify and prioritise the improvement activities as per the requirements of the bank. Through RADAR logic cycle, Executive Bank can determine its outcomes which are focused on its supported policies and strategies. With the help of this outcome, the organisation can measure its financial as well as operational performances along with the anticipations of its respective stakeholders (OAS, 2013). Figure: Radar Logic Cycle Source: (OAS, 2013). Through the utilisation of these three integrated components Executive Bank can compare its actual outcomes with desired results in terms of attributes, qualities and achievements as compared to the other sustainable organisations. Moreover, with the help of these three components, the organisation can develop a culture of excellence by bringing in consistency within its management practices, easily implementing strategic practices, deciphering innovation and also improving its overall outcomes (OAS, 2013). Utilisation of EFQM by Other Service Organisations Siemens Healthcare is one of the leading service organisations, which primarily supports the business operations of healthcare industry. In the year 2010, the UK segment of Siemens Healthcare was rewarded for ‘Adding Value to the Customers’ through the utilisation of EFQM excellence model. Through this model, the company has been capable to deliver value added services to the customers without compromising with the needs as well as the expectations of its stakeholders. Additionally, with the help of this model, the company has attained excellent brand loyalty related outcomes and also been able to deliver superior customer services as compared to its competitors. Moreover, by utilising this model, Siemens Healthcare has been able to make consistent innovative developments within its overall business activities. It has been observed that by utilising EFQM model, Siemens operates its business activities with efficiency along with ascertaining core commitment of its employees, focusing towards the customer expectations and attaining capability of understanding the needs of potential customers. In this way, Siemens has developed sustainable business relationship as well as attained long-term success (Siemens plc, 2013). Barclays is one of the leading global financial services organisations whose business activities are primarily based on dealing with personal banking, investment banking and credit cards. In the year 2009, the company was rewarded for delivering consistent quality assured services to its customers by utilising EFQM model. With the help of EFQM model, the company has been able to provide excellent banking and other financial services by working together with its business partners and comprehending the needs of its clients within the chosen market segment. Additionally, through this model, the company has also been able to change and build the culture of values as well as ethics which facilitates the company to deliver suitable services as per the market demands. By utilising this model, it is also able to create and deliver long-term sustainable value to its stakeholders in an accurate manner. Furthermore, this model helps the company to attain competitive position by maintaining strong relationships with its partners and comprehending precise needs of its potential customers (Barclays, 2013). Conclusion From the overall discussion, it can be concluded that EFQM Excellence Model is a strong management tools by which every organisation can obtain long-term success by enhancing the level of their internal work performance. This model is also referred as self-evaluation framework which can ensure continuous development for Executive Bank plc and also help to attain challenging objectives. This model can facilitate Executive Bank to recognise its strengths and opportunities in order to improve the performance by emphasising upon the relationships amid the procedures, people and results. Moreover, through this model, the bank can improve its Gold Card Protection Service by enhancing the existing services areas. This model also would help the organisation to maintain strong relationship with its external business partners and to understand the needs of its customers which would in turn facilitate to attain long-term sustainable success. Through this excellence model, Executive Bank can develop a strategic formula which would depict the organisation a tactical roadmap for achieving competitive advantages. Through EFQM model, Executive Bank can understand the required needs for improvement for the organisation to attain long-term success. References Barclays, 2013. About Us. Barclays at a Glance. [Online] Available at: http://group.barclays.com/about-barclays/about-us [Accessed April 10, 2013]. EFQM, 2013. The Fundamental Concepts of Excellence. Introducing the EFQM Excellence Model 2010. [Online] Available at: http://www.efqm.org/en/PdfResources/EFQMModel_Presentation.pdf [Accessed April 10, 2013]. EFQM, 2011. The Need for a Model. Introducing the EFQM Excellence Model. [Online] Available at: http://www.efqm.org/en/PdfResources/Introducing%20the%20EFQM%20Model%20(public).pdf [Accessed April 10, 2013]. Global Consulting, 2000. Using The EFQM excellence Model. Business Excellence Snapshot. [Online] Available at: http://www.sixdc.com/globalcn/files/Global%20Business%20Excellence%20Snapshot%20Guide.pdf [Accessed April 10, 2013]. Johnston, R. & Clark, G., 2007. Service Operations Management: Improving Service Delivery, 2/E. Pearson Education. OAS, 2013. The EFQM Excellence Model in Action. Starting Out On the Journey to Excellence. [Online] Available at: http://www.cicad.oas.org/reduccion_demanda/eulac/forum_exchanges/tucuman/Documents/EFQM_3.pdf [Accessed April 10, 2013]. Paghaleh, M. J., 2011. Performance Measurement by EFQM Excellence Model with Fuzzy Approach. Australian Journal of Basic and Applied Sciences, Vol. 5, No. 10, pp. 1020-1024. Siemens plc, 2013. Siemens Healthcare UK Wins EFQM Award for ‘Adding Value for Customers’. News Archive. [Online] Available at: http://www.siemens.co.uk/en/news_press/index/news_archive/healthcare-wins-efqm-award-for-adding-value-for-customers.htm [Accessed April 10, 2013]. Read More