European Foundation for Quality Foundation - Report Example

European Foundation for Quality Foundation (EFQM) Report European Foundation for Quality Foundation (EFQM) Report Executive Summary The Chief Executive Officer of Squire Hotel Management commissioned the management team of the hotel to examine and recommend how vital European Foundation for Quality Management (EFQM) Model of Excellence could apply towards improving performance of the hotel. Moreover, EFQM Model of Excellence is a significant tool in managing, improving, and measuring the performance of an organization. The report also focuses on critical analysis of the complete approach of the model application to an organizational performance and achievement (Dutt et al. 2012, p. 13). In the report, the model of excellence remains one of the most successful ideas that can help the Squire Hotel Management to succeed in measuring, managing, and improving its operations. Introduction Squire Hotel Group launching took place early 2013 and formed a management team that deliberated on various issues that could help develop the organization. The team management attended a seminar that focused on EFQM Model of excellence. The seminar mainly focused on the holistic approaches that EFQM model takes towards managing, improving, and measuring organizational performance. The report on EFQM provides a detailed analysis that evaluates how beneficial EFQM Excellence Model will be to Squire Hotel Group. The report gives an appropriate recommendation on how Squire Hotel Management would apply the model to improve its performance and successfully achieve its objectives and goals. Role of EFQM Model in Organizational Management The Model European Foundation for Quality Foundation (EFQM) is essential in organizational management. The management developed a vital model that thousands of organizations have widely adopted. The model incorporates the use of Knowledge Management (KM) to provide a clear understanding of the EFQM model components (Silvius, & Tharp 2013, p. 8). A self-assessing framework that measures the strengths as well as organizational areas that helps in improving it throughout all its activities. The model has a number of sub-criteria that are useful in assessing how essential it is to management and progress of the organizations. Some of those criteria include enablers, which are five in number and results that are four in number. Enablers are criteria that give the direction of how management do and conduct its things and objectives. The EFQM model has a self-assessment exercise that enables an organization to take action in performance improvement. The performance improvement takes effect when the model users apply the guidelines that exist in the model’s relevant publications. Moreover, some of the guidelines remain available to the model users after receiving further training particularly in areas that require improvement. Alongside training, at times a company can use benchmark of improvement towards ensuring that there is performance score against its criteria. Leadership Leadership is one of the criteria in the enablers that have a crucial role in towards the progress of an organization (Pastor 2014, p. 11). It provides a platform in which leaders facilitate and develop the mission achievement. In this criterion, the model also helps in developing leadership values necessary for the long-term success of an organization. The criterion requires that leaders develop appropriate behaviors and attitude. As a result, the organizational management ensures that there is effective and efficient development and implementation of objectives and policies. The leadership criteria would also help in ensuring that a pragmatic delivery of excellence according to the organizational needs and strategy becomes implementable. EFQM Model of Excellence in Action The second criterion used in the model to ensure organizational management success is policy and strategy. In policy and strategy enabler criterion, the organization carries out mission and vision implementation by applying stakeholders’ strategy focus that has clarity and relevant policies with backings. The model also provides organizational management with missions and visions that have clear objectives, targets, plans, and processes. EFQM model has a clear diagnosis for activities of an organization. The diagnosis is also vital in planning because it helps in creating links between the organizations activities and its results. Further, the diagnosis also gives an outline of how it has achieved its desirable results. The enablers In the enablers, there is also people criterion. In this criterion, organizational managers show clearly how they develop and release knowledge as well as full potential of its human resource both at an individual, organizational-wide and team-based levels. In addition, the organizational managers also find a platform for planning for the organizational strategy and activities. It is at this stage that managers also make operations of their processes effective. People criterion is an enabler that does not require external validation to implement. In addition, excellent model applies self-assessment tool driven internally and allows an organization to remain honest and as transparent as possible. The transparency and honesty provides room for gauging the organizations performance. Completion of self-assessment against the excellence model is very quick especially for a basic assessment. Excellent model assessment is also essential because it is regular for review. It is also easier for users to conduct assessment annually as part of the business planning process. Partnership and resources Partnership and resources are other groups of enablers that focus on how an organization manages and plans its external partnerships together with its internal resources. The motive behind such planning is to help support its strategy and policy. In addition, the organization generates and fully satisfies the increasing value for its stakeholders and customers. Partnership and resources creates an enabling environment for effective operation of the organizational processes. Self-assessment Self-assessment is useful in the systematic and regular review of organizations activities because it is applicable to all types, forms, and sizes of businesses. Such organizations include the military, charity groups, local governments, police forces, hospitals and other private companies. It is therefore useful for the Squire Hotel Group to use EFQM model to implement its strategies because it is applicable to all sizes of organizations. It is also easy to apply self-assessment in the EFQM model because it can cover either the whole organization or just some departments within the organization. Organizations that apply the self-assessment in contrast with Excellence model enjoy the privilege of identifying their strengths and areas needed to make improvement and adjustments. In addition, it is an effective means through which an organization coordinates its quality initiatives. In the process, the organization forms a structured and cohesive approach towards achieving business excellence. If Squire Hotel Group applies self-assessment, the business will benefit in developing of concise, clear action plans. It will also develop more focused and clear strategy and policy. The organization will also not fail to improve its processes that enable it to achieve its objectives with success. In addition, the organization will also develop improved prioritization of its resources (Liviu et al. 2013, p. 1488). Moreover, the business will also give greater motivation as well as organizational satisfaction to its personnel. Finally, among the enablers is the processes criterion. The processes here refer to how the business design improves and manages its processes towards supporting its policies and strategies. In the process, the business can generate increasing value for its stakeholders and other customers. Consequently, the business establishes a wide customer base and relations. Besides the enablers, there are also results when EFQM is applied in the organization. There are customer results, people results, society results, and key performance. Customer results mainly address some of the key achievements that the organization makes in relation to the demands of its external customers. The knowledge of the customers’ demands is essential because it improves the company’s competitive edge over rival companies (Lankhorst 2010, p.14). In addition, it leads to total satisfaction to the esteemed and potential customers of the business organization with limited disappointments to customers when it comes to their needs. The external customers are vital components of a business organization. Knowing their interests and demand is therefore a great step towards seeing the company grows to its desirable size. Another result that an organization targets, measures, and achieves is people results. The result indicates what the company or organization achieves in relation to people around it. Such results are essential since they give the company an opportunity to take into account the needs of the organization staff and its people. Through sharing of values, organization’s people realize their full potential by sharing diversified culture, empowerment, and trust. Consequently, the process encourages the involvement of each individual. EFQM Model of Excellence in Action (Adopted from Ogland 2014, p. 68) Role of EFQM Model in Organizational Performance Measurement Every business organization including Squire Hotel Group has a vision or mission to achieve through development and facilitation. Businesses therefore develop values that they require for long-term success and then implement such values by use of appropriate actions and behaviors. Martín-Castilla and Rodríguez-Ruiz (2008) discuss the application of EFQM in prompting knowledge governance and ensuring competitive advantage for organizations. Through knowledge implications of EFQM, business managers get to set the direction for business based on direct knowledge and influence depending on customer needs. The management also takes into account the product trends in the market as well as technological advancements. In addition, to put into account by the business management also involves measuring shareholders’ objectives, market share, and financial performance. EFQM Model Improves Productivity and Profitability Leaders must put into account the role of the workforce to ensure that the business succeeds. In each measure that an organization takes, it must consider it up to an individual level. The workforce individuals must always take a moment to gauge their performance in the overall work performance or specific strategies. Another advantage that comes with the model is that its measures evolve with time (Stimpfle 2011, p. 2). Consequently, what the organization consider to measure today may not be significant to measure in the future. Whatever the organization measures at any given point include organizational dynamics, services products, people contribution and customer’s base. Personnel working under managers are the ones who carry out the actual work. They have a wide knowledge of competitors and customers because they possess vital intimate knowledge. The workers have elaborate understanding of their working environment. The management that taps the knowledge of its staff and eventually allows improvement on them achieves big business success. It is evident that financial figures are crucial indicators of a company’s performance. The business organizations can either fire or hire its Chief Executive Officers based on financial figures indicators. However, financial indicators lack direct responsibility for managing and achieving financial results. Organizations therefore need to establish certain levels of non-financial performance to improve its target. EFQM Model Increases Customer Satisfaction Using the EFQM model, all business functions within the organization remain part of introduced measures. The model compels business organizations to market their measures with care. The model enables organizations to determine improvement areas and not for use in the political games. Measurement in organizations is essential in creating allowance for local influences and practices in the business. Measurement enables a business to apply a wider prospective hence reducing the prejudice feeling through one indicator measurement. Measurement is essential in organizational performance because it would create a balanced scorecard that indicates intellectual capital (Andjelkovic, Pesic, & Dahlgaard 2013, p. 656). Organizations that use EFQM model have balanced scorecard initiative. Consequently, such businesses flourish towards achievement of their objectives (Nejati 2013, p. 281). Balanced scorecards are essential in designing the company’s strategy and then provide measurement against it. The scorecards measure business strategy at individual, sub-group, and group levels. The RADAR When measuring organizational performance, a framework for self-assessment known as RADAR (Results, Approach, Deployment, Assessment, and Review) helps in providing indication achieved for each element. EFQM model provides a view that is holistic of the organization. The model is useful in determining how varying methods fit together. In addition, the model also helps in complementing each other. The model can therefore give room for using it in conjunction with any amount of the measurement tools. The number of tools the model applies depends on the functions and needs of the organizations. It helps in an overarching framework upon which development of sustainable excellence occurs. EFQM Model Raises Employee Engagement Using EFQM model makes an organization train its employees as well as acting as reference to the external customers. The model enables customers to interact with one another as they spread the information about the business image to other interested persons. During their interactions, the new products find development leading to product improvement (Zárraga-Rodríguez & Alvarez 2013, p. 553). Most business organizations utilize projects of customers to develop their new products. When using EFQM model, organizations also undertake successful high profile customers without considering their profitability. In this model, invaluable helps in promoting sales because they enhance attention attraction and organizations can use them as accounts of reference several years later. Plant Regensburg is among the organizations that have used the model to improve its production levels. In 2013, Plant Regensburg, a producing plant for BMW, realized a daily production of 1,100 vehicles and a total of 295, 417 vehicles in that year. Plant Regensburg was among the 2014 award winning organizations for using the model to improve excellence (EFQM, 2014). Potential Benefits and Limitations of the Model The model has several potential benefit. First, it presents a holistic framework for addressing organizational quality issues. Second, it is efficient in enhancing diagnosis of an organization’s activities and programs with an aim of ensuring improvements. It helps increase the culture of improvement in the organization. On the contrary, there are limitations to the model’s use. The model does not have an approved accreditation. The model was initially deigned for large commercial organizations, and, therefore, may be challenging to implement by medium organizations. Recommendations In the report, the management task team provided a detailed analysis of enablers and results that EFQM model of excellence applies to improve performance and management. The report focused on people, partnership, resources, and processes. In addition, the model of excellence evaluates best policy and strategy methods useful in any organizational setup and recommendations on how organizations apply them with success. The management task force team took a deep analysis of the implementation of EFQM Model of Excellence and made numerous recommendations that would improve Squire Hotel Management performance. In the recommendations, the task force also analyzed various roles and methods through which the hotel would improve its improvement. Conclusion Despite the presence of various performance tools of improvements and techniques, the British Quality Foundation still recommends the use of EFQM Excellence Model by organizations to sustain and achieve excellence. The organizations that use the EFQM Model of Excellence make their organizations better. It is a non-prescriptive and practical framework essential in helping a business improves. In summary, EFQM Model of Excellence helps organizations gain competitive advantage, improves business performance, increase productivity and profitability, streamline its operations, and raise customer satisfaction. Furthermore, the model raises employee engagement, enhance brand reputation, and embed continuous improvement. Bibliography Andjelkovic Pesic, M, & Dahlgaard, J 2013, Using the Balanced Scorecard and the European Foundation for Quality Management Excellence model as a combined roadmap for diagnosing and attaining excellence, Total Quality Management & Business Excellence, 24, 5/6, pp. 652-663. Dutt, M, Biswas, D, Arora, P, & Kar, N 2012, Using the EFQM Model Effectively, Journal For Quality & Participation, 35, 1, pp. 11-17. EFQM (2014). EFQM AWARD 2014. Retrieved April 19, 2015 from http://www.efqm.org/what-we-do/efqm-award-2014 EFQM, (2015). RADAR LOGIC. Retrieved April 19, 2015 from EFQM, available at http://www.efqm.org/efqm-model/radar-logic Lankhorst, M. (2010). Enterprise architecture at work modelling, communication, and analysis. Norwood Mass, Books24x7.com. Liviu, I, Diana, P, & Diana, B 2013, Applying The Efqm Excellence Model At The German Study Line With Focus On The Criterion "Customer Results", Annals Of The University Of Oradea, Economic Science Series, 22, 1, pp. 1486-1494. Martín-Castilla, J. I., & Rodríguez-Ruiz, Ó. (2008). EFQM model: knowledge governance and competitive advantage. Journal of Intellectual Capital, 9(1), 133-156. Nejati, Mehran, (2013). Frontiers of business, management and economics: an interdisciplinary. [S.l.], Universal-Publishers Com. Ogland, Petter. (2014). Mechanism Design for Total Quality Management: Using the Bootstrap Algorithm for Changing the Control Game. New York: Lulu. Print. Pastor Tejedor, A, Pastor Tejedor, J, Navarro Elola, L, Sodhi, M, & Pérez Sancho, G 2014, Creating a holistic excellence model adapted for technology-based companies, Tourism & Management Studies, 10, pp. 7-18. Savić, M, Djordjević, P, Nikolić, D, Mihajlović, I, & Živkovic, Ž 2014, Modeling The Influence Of Efqm Criteria On Employees Satisfaction And Loyalty In Transition Economy: The Study Of Banking Sector In Serbia, Serbian Journal Of Management, 9, 1, pp. 15-30. Silvius, G., & Tharp, J. (2013). Sustainability integration for effective project management. Hershey, Pa, IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). Stimpfle, A. (2011). The Enabler Criterion "Leadership" of the EFQM Model: Six Companies of the Financial Services Sector in Comparison. Munich, GRIN Verlag. Zárraga-Rodríguez, M, & Alvarez, M 2013, Exploring the links between information capability and the EFQM business excellence model: the case of Basque Country Quality award winners, Total Quality Management & Business Excellence, 24, 5/6, pp. 539-560. Appendix Approach to Assessing the Performance of an Organization (Retrieved from http://www.efqm.org/efqm-model/radar-logic) Appendix 1 An assessment of the Enablers Apendix 2 An assessment of the Results Read More