Usefulness of the EFQM excellence model: Theoretical explanation of some conceptual and methodological issues

Abstract

This paper assesses the usefulness of the EFQM Excellence Model for decision-making on organizational improvement activities. The paper does this by studying the procedures of the EFQM model in practice, and – based on definitions of the object, criteria for decision making, the object goals and levers for the EFQM Excellence Model and their relationship – this paper discusses some methodological issues related to the use of the EFQM model. These procedures are studied in order to analyse their appropriateness for identification of problematic situations and, based on that, for identification of problems. The paper concludes that the EFQM Excellence Model is appropriately structured to perform the first phase of the analysis, i.e. identification of a problematic situation, but on the other hand the model does not offer any specific guidelines about the second phase, i.e. problem identification. The model offers no structured approach about how to exploit strengths or about how to classify or prioritize areas of improvement. From these methodological questions of applicability of the EFQM model two important conceptual issues arise. The first conceptual issue is related to the question of whether the organizational excellence is appropriately reflected in the sub-criteria used for the purpose of measuring excellence. The second conceptual issue is that of clarifications of the relationship between decisions made on the basis of the EFQM model self-assessment results and other strategic, business, organizational, etc, decisions.

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