®

FUNDAMENTAL CONCEPTS OF EXCELLENCE

EFQM SHARES WHAT WORKS

EFQM is committed to help organisations drive improvement through the use of the EFQM Excellence Model, a comprehensive management framework used by over 30,000 organisations in Europe. For the last 20 years, we have managed the development of this Model, incorporating the experiences and learning from these organisations to ensure it reflects reality and offers a path for sustainable excellence.

To help you implement our Model, we provide training, assessment tools and recognition. But our real talent comes from gathering good practices and integrating those within our portfolio. EFQM, a not-for-profit membership Foundation, aims to share what works, through case studies, online seminars, working groups, conferences and thematic events. We nurture a network of world-class organisations and their leaders who share our passion for business excellence.

We believe that the EFQM Model is a common framework that helps us all to improve our businesses. Sharing our member’s enthusiasm, their motivation and the results they achieve; that is what we work for at EFQM.

© EFQM 2012No part of this publication may be reproduced, stored in a re-trieval system or transmitted in any form or by any means (be this electronically, mechanical-ly, through photocopy or re-cording, or otherwise) without either the prior written permis-sion of, or a license permitting restricted copying and use for a third party, from the publisher.

Contentsintroduction to the fundamental concepts of eXcellence

the fundamental concepts of eXcellence 03Adding Value for Customers 03Creating a Sustainable Future 03Developing Organisational Capability 04Harnessing Creativity & Innovation 04Leading with Vision, Inspiration & Integrity 05Managing with Agility 05Succeeding through the Talent of People 06Sustaining Outstanding Results 06

how mature is your organisation? 07

further reading 08

acknowledgements 09

1fundamental concepts of excellence 2013

Introduction to the Fundamental Concepts of Excellence

Excellent Organisations achieve and sustain outstanding levels of performance that meet or exceed the expectations of all their stakeholders.we can all think of organisations that we would recognise as being excellent. they may well operate in different environments, with different stakeholder constituencies, and come in all shapes and sizes but what they share a common mindset that is based on a number of attributes and ways of working that separate them from the crowd.

this publication describes these attributes, what efQm calls the fundamental concepts of excellence, in further detail and we believe that their incorporation into the ways of working of any organisation will help it to im-prove its overall performance. the eight fundamental

concepts of excellence have been identified through a rigorous process that included benchmarking globally, searching extensively for emerging management trends and, last but not least, a series of interviews with senior executives from a cross-section of industries operating across europe.

each of the concepts mentioned in this publication is important in its own right but maximum benefit is achieved when an organisation can integrate them all into its culture.

Adding Value for Customers

Creating a Sustainable Future

Developing OrganisationalCapability

Harnessing Creativity & Innovation

Leading with Vision, Inspiration & Integrity

Managing with Agility

Succeeding through theTalent of People

Sustaining Outstanding Results

©EFQM 2012

2 fundamental concepts of excellence 2013

now you might want to consider your own organisation and ask yourself the following questions: do i understand and accept that the fundamental

concepts are indeed an important ingredient for the future success of my organisation?

if not, why not?

How mature is your organisation?

Concept Starting On the Way Mature

adding Value for customers

customer groups are identified, day to day

contacts are managed and satisfaction is measured.

needs and expectations are deeply understood and embedded in customer related management

processes.

the on-going dialogue with customers is used to anticipate changes to the needs and expectations of markets,

current and potential customers.

creating a sustainable

future

management, legal and global/local regulatory

requirements are understood and met.

the organisation’s approaches support the aims of economic, social

and environmental sustainability.

sustainable corporate behaviour is recognised by key stakeholders as

an integral part of the organisation's purpose and strategy.

developing organisational

capability

a process exists for understanding current capabilities and future organisational needs.

there is a structured process managing organisational change.

the organisation has a proven track record for effectively managing change, not only within their own operations but across all key parts of their value chain.

harnessing creativity & innovation

new ideas and innovations are encouraged.

creativity and innovation are managed as structured

processes with assigned roles and responsibilities.

the organisation has established a reputation for driving change within

and beyond their market sector through their creativity and innovation.

leading with Vision, inspiration

& integrity

the Vision and mission are defined, communicated and

generally understood.

leaders inspire people throughout the organisation through shared

values, role model behaviour.

a common and shared purpose derived from the Vision, mission and Values is established and visible in the way the

organisation operates and the way people work.

managing with agility

the processes required to achieve the desired results are defined, developed, measured and managed.

comparative data and information are used to put performance into

context and drive improvement with appropriate speed for the market.

the organisation is able to anticipate and take timely action to exploit

opportunities or effectively manage threats to ensure their future success.

succeeding through the

talent of people

approaches are in place to involve people and their talents are recognised.

the potential of people is increasingly enabled; people are

motivated and prepared to “go the extra mile”.

a culture of trust and empowerment drives performance and enhances the organisation’s image and reputation.

sustaining outstanding

results

the strategic goals of the organisation are based on the

needs and expectations of their key stakeholder groups.

a balanced set of results is used to monitor performance against

strategic goals and how it compares to competitors or best in class

organisations.

the key stakeholders have relevant data and confidence that the organisation

will be able to sustain outstanding performance levels.

for every concept, here’s where you might be and where you could go:

if i do understand and accept the relevance of these fundamental concepts, to what degree are they living and growing in my organisation?

and, above all, what are the next steps i can undertake to improve the performance of my organisation?

7fundamental concepts of excellence 2013

© EFQM 2012No part of this publicati on may be repro-duced, stored in a retrieval system or transmitt ed in any form or by any means (be this electronically, mechanically, through photocopy or recording, or other-wise) without either the prior writt en per-mission of, or a license permitti ng restrict-ed copying and use for a third party, from the publisher.

ISBN: 978-90-5236-658-6

EFQMAvenue des Olympiades 21140 Brussels, BelgiumTel +32 (2) 775 35 11Fax +32 (2) 775 35 35info@efqm.orgwww.efqm.org