EFQM Model

The EFQM Model is used to structure and measure Excellence. Independent assessors will conduct the assessment using the RADAR logic.

The EFQM Model is a flexible model, based on seven criteria, which provides support in analyzing and understanding an organization’s behavior, its way of thinking, and its culture.

Using the EFQM Model offers the opportunity to see an organization as a whole; it sets a framework that helps companies to include all of their business units, without forgetting any of them. It can be seen as pieces of a puzzle, which are separate yet related and add up to a bigger picture when being put together.

© EFQM

The criteria model describes the requirements an excellent organization has to face in practice. The model consists of seven main criteria, which are divided into subcriteria.

The EFQM Model structure is based on the powerful logic of asking three questions:

• Why does this organization exist? What purpose does it fulfill? Why this particular strategy? (Direction)
• How does it intend to deliver on its purpose and its strategy? (Execution)
• What has it actually achieved to date? What does it intend to achieve tomorrow? (Results)

Central to the rationale of the EFQM Model (the „red thread“) is the connection between the purpose, vision and strategy of an organization and how that is used to help it create sustainable value for its most important stakeholders and deliver outstanding results.

Direction

For an organization to achieve and sustain outstanding results that meet or exceed the expectations of its stakeholders it

• defines an inspiring purpose
• creates a vision that is aspirational
• develops a strategy that is centered on creating sustainable value
• builds a winning culture.

This direction setting prepares the way forward for the organization to be seen as a leader in its ecosystem and well positioned to execute its plans for the future.

Criteria 1:  Purpose, Vision, Strategy

Criteria 2: Organizational culture and leadership

Execution

For an organization to achieve and sustain outstanding results, the direction setting as outlined above prepares the way forward for the organization, but it then needs to execute its strategy effectively and efficiently, ensuring that it:

• knows who the stakeholders are in its ecosystem and engages fully with those that are key to its success
• creates sustainable value
• drives the levels of performance necessary for success today and, at the same time, drives the necessary improvement and transformation if it is to be successful in the future.

Criteria 3: Engaging stakeholders

Criteria 4: Creating sustainable value

Criteria 5: Driving performance and transformation

Results

Two of the main criteria concentrate on the results of the organization. Here, the perceptions (i.e. the perspective of stakeholders, for example, from surveys), as well as predefined and measured performance indicators in relation to the respective stakeholder are addressed, reviewed for relevance and evaluated.

Criteria 6: Stakeholder perceptions

Criteria 7: Strategic and operational performance

The cause and effect that the approach and the actions taken (direction and execution criteria) have on results (results criteria) will become visible (control loop).

The EFQM Model does not present practical, company-specific checklists or a description of the exact procedure. However, for each criteria, various examples and approaches are described. These examples should give an idea of the actions a successful organization could take with respect to specific topics.

The criteria model is kept open and can be applied by any organization, regardless of its size, type (profit, not-for profit), industry or business model. Having the focus on the approaches addressed in the EFQM Model will implement a learning curve. Creativity and innovation, as well as benchmarking will be promoted; the culture and approach will be reflected.

The RADAR logic (RADAR: Results / Approach / Deployment / Assessment and Refinement) is the diagnostic tool of the EFQM model which is used for factual assessment. It is the „red thread” in the overall assessment process and is applied in each criterion part of the EFQM model. RADAR is a systematic tool that includes a qualitative and quantitative analysis of both the direction and execution as well as the results of the organization.

© EFQM

For quantitative analysis, the RADAR scoring matrix chart (0 to 1000 points) is used, which provides information about the level of the organization assessed. In line with the quantitative analysis, the organization receives valuable feedback from independent experts on its strengths and opportunities for improvement in various sectors / topics. The assessment of an organization using the RADAR logic is then summarized in a feedback report. It offers an opportunity to compare with other organizations and, at the same time, provides a valuable source of specific improvement measures.

Consistent design of business excellence clearly has a positive impact on an organization’s success in the long term.

Companies with a high level of business excellence significantly outperform their benchmark companies. Outcomes from different scientific studies clearly demonstrate the following benefits:

• Compared to a control group, the award winning companies (i.e. after successful implementation of business excellence) have grown faster in terms of their operational results and sales.
• There is clear evidence that award-winning companies have a better cost structure.  
• The long-term performance of companies with implemented business excellence has significantly improved.  
• The results generally show a positive relationship between implementation of business excellence and performance of the respective organization.

The Austrian Excellence Award Assessment provides great benefits; participating is easy.

Simple application procedure:

• Short registration form, questionnaire (based on the EFQM Model)

Concise assessment:

• Strategy check, discussions during the site visit
• Feedback & results of the assessment on site

High advertising value:

• Positive effect on company image
• Award „Exzellentes Unternehmen Österreichs“ („Excellent Company of Austria“)
• Strong media communication of the Award

Useful Feedback!

• think outside the box, identify „blind spots“
• expand strengths and work on opportunities / potentials
• improve and further develop the organization, inspire customers and distinguish yourself from the competition!

Please note that only Austrian companies are eligible to participate in the Austrian Excellence Award. Application documents are available in German language only! Find further German information about the Austrian Excellence Award at www.staatspreis.com.