Benchmarking model

Benchmarking model

Benchmarking model

What is EFQM?

EFQM is the most widely-used Business Excellence Framework in Europe, with over 30,000 businesses using the Excellence Model to improve performance and increase their bottom-line. Quality Scotland is the National Partner Organisation for delivering and promoting EFQM in Scotland. The Excellence Model takes a holistic view of an organisation and, when used as a diagnostic tool, it allows your organisation to assess its strengths and areas for improvement in detail across nine key areas. There is an overarching philosophy of continuous improvement that is applicable to all sectors: (K. Hendricks & V. Singhal, 2006, 54-67)

The Excellence Model is a non-prescriptive framework that allows for enough flexibility to be adapted to any type of organisation, regardless of size or sector. In addition, the Excellence Model is considered an over-arching framework that can be used alongside other tools and standards such as IIP, Charter Mark, and Balanced Scorecard and so on.

How does EFQM work?

A key feature of the Model is its use as a diagnostic tool for self-assessment, where organisations grade themselves against a set of detailed criteria under each of the nine headings. The overall score acts as a European benchmark and helps organisations identify areas for improvement. It is then possible to develop and implement improvement plans that deliver sustainable growth and enhanced performance for the organisation. The Model is continually updated, developed and administered by EFQM in Brussels. They see it as vital that organisations using the Model keep up to date with the latest thinking and criteria as this ensures organisations are working to a consistent standard across Europe. This is particularly important for benchmarking, self-assessment and participation in recognition schemes. (K. Hendricks & V. Singhal, 2006, 54-67)

Improvement

The research was commissioned by Steve Johnson, Director of Quality Public Services (QPS), Inland Revenue, to examine how use of EFQM and Balanced Scorecard (BSC) may best assist improvements in the future performance of the Inland Revenue. The findings may have potentially wider application to other public service providers.

The requirement for the research came from the introduction of a BSC within the Inland Revenue - an experienced user of the EFQM model. The BSC was introduced in part, to enhance strategic planning and corporate performance management and enable achievement on the governmental agenda of focusing on delivery. A trend observed elsewhere across Whitehall.

These developments indicate that the EFQM model (a universally accepted model of operational excellence) is potentially failing public services in improving organisational performance. The BSC with its focus on defining strategy and its supporting performance measures appears to offer a solution to assisting improved public service delivery. Yet most research on BSC implementation suggests a high failure rate in the order of 70%.

This research therefore set out to explore how EFQM and BSC are used elsewhere in the public and private sectors and whether combined use may maximise the benefits and reduce the weaknesses of each. Further, in adopting such an approach what factors are critical to ...