EFQM and business excellence models: measuring what good actually looks like

Here is a question most owners cannot answer well: is your business actually any good? Not was this month good, not are sales up, but is the organisation itself sound, as a whole, compared with the best of its kind. Most people answer with a feeling, and feelings about your own business are notoriously unreliable, biased by the last conversation and the current mood. Business excellence models exist to replace that feeling with a structured, honest look in the mirror. The best known in Europe is EFQM; in the United States it is the Baldrige framework. They do the same job.1

00.20.50.811Leadership &strategy1People &resources1Processes1Results
Excellence models link how you run the business to the results you get. Indicative. Source: EFQM and Baldrige frameworks

What an excellence model actually does

An excellence model gives you a structured way to assess the whole organisation, not just its finances, and crucially it links the two things most businesses look at separately: how you run the place and what results you get. It asks about leadership and strategy, about how you treat people and use resources, about your processes, and about the results across customers, people, society and the business. Then it makes you look at them together, so you can see whether your results come from a sound organisation that will keep producing them, or from luck and effort that will not. That link, between enablers and results, is the whole point.

Why the honest mirror is the value

The reason to use one of these models is not the score. It is the discipline of assessing yourself against a complete picture of what good looks like, honestly, including the parts you would rather not examine. Left to ourselves we assess the business on its strengths, the bits we are proud of, and quietly skip the bits we are not. An excellence model does not let you skip. It walks you through every dimension of a well-run organisation and asks how you actually do on each, which is uncomfortable and exactly why it is useful. The gaps it surfaces are the ones you had been carefully not looking at.

The solution, as a self-assessment

Give your business an honest score

DimensionThe honest questionRate 1-5
DirectionIs there a clear strategy people can actually name?—
LeadershipDo leaders here model what they ask for?—
PeopleDo we develop and keep good people, or burn them?—
ProcessesDoes the work run on good processes, or on heroics?—
CustomersDo we actually know what customers think, from data?—
ResultsAre our results sustainable, or luck we cannot repeat?—

Score yourself honestly, then ask someone who will disagree with you to score it too. The gap between the two scores is where the truth is.

The mistake: chasing the score instead of the insight

The trap with any excellence model is to turn it into an award to win rather than a mirror to learn from. Organisations start managing to the score, polishing the assessment, gaming the categories, and the whole point is lost, because the value was never the number. It was the honest look. Used well, the model is a tool for finding your real weaknesses before the market does. Used badly, it becomes another certificate on the wall next to the ISO 9001 one, proving nothing except that you are good at passing assessments. Use it as a mirror, not a trophy.

Questions an excellence model forces you to face

  • Is our business actually good as a whole, or just good this month?
  • Do our results come from a sound organisation, or from luck and effort?
  • Which dimension have we been quietly avoiding assessing?
  • Would someone honest score us the same as we score ourselves?
  • Are we using this to learn, or to win an award?

A business excellence model like EFQM is a structured, honest mirror for the whole organisation, linking how you run the place to the results you get, and forcing you to look at the parts you would rather skip. Its value is the honesty it imposes, not the score it produces. Run the self-assessment, get someone who will disagree to run it too, and treat the gaps it exposes as the work list they are. Do that and you will know something most owners only feel: whether your business is genuinely any good, and exactly where it is not.

Notes and sources

  1. The EFQM Model and business excellence self-assessment. EFQM. Link. ↩
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