Q. 131  The basic tenet of the EFQM model (European Foundation for Quality Management) is Bench-marking. Explain the 8 core values of the EFQM Model. Compare the RADAR cycle (EFQM Model)  to DMAIC (Six Sigma).

 

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Continual Improvement remains to be the key DNA for any organization to remain competitive in the business and deliver value to their customers. Different organizations use different methodologies, approaches and tools for deploying such continual improvement programs for adhering to their quality improvement commitments. These programs are generally addressed by different names i.e. it can be called as Total Quality Management, Six Sigma, Business Process Improvement, Business Process Re-engineering, Operational Excellence or Business Excellence.

 

EFQM is one such business excellence model. This tool helps organization to measure where they stand today on the path of excellence, understand the gaps and promoting solutions. This model also helps to ensure that business decisions incorporate the needs of all stakeholders and are aligned with the organization’s objectives.

 

EFQM consists of 3 components

a.     8 Core Values -  Key Management Principles for achieving sustainable excellence in any organization

b.     9 Criteria – Framework to help Organizations to convert Values into Practice.

c.      RADAR – Tool to drive continuous improvement

 

a. The 8 Core Values of EFQM

1.    Adding value for customers

2.    Creating a sustainable future

3.    Developing organizational capability

4.    Harnessing creativity and innovation

5.    Leading with vision, inspiration and integrity

6.    Managing with agility

7.    Succeeding through the talent of people

8.    Sustaining outstanding results

 

b. The 9 Criteria – 5 Enablers and 4 Results

·        Enablers – Leadership, People, Strategy, Partnerships & Resources and Processes – Products – Services

·        Results – People, Customer, Society and Business Results.

The Criteria allows people to understand the cause and effect relationships between what their organization does and the results it achieves.

 

 c. RADAR

RADAR stands for Results, Approaches, Deploy, Assess & Refine

Results – Define the goal aimed as part of the organization strategy

Approaches – Plan and develop a set of approaches to deliver the required results now and in the future

Deploy – Implement the approaches in a systematic way

Assess & Refine – Monitor the deployed approaches and analyze the results achieved and ongoing learning

 

Let’s see how RADAR maps to DMAIC

• Results should be equivalent to Define phase where you identify and set goals for improvement
• Approaches should be equivalent to Measure and Analyze phase where you plan and develop a set of approaches to achieve the set goal
• Deploy should be equivalent to Improve phase where you implement the developed approaches
• Assess & Refine should be equivalent to Control phase where we monitor the deployed solution and see its impact on the results.

Before we conclude this topic, we need to understand the limitation of EFQM.

• This is a long-term strategic tool and cannot be used as a tool for day-to-day business as the positive effects of this model is seen in long term.
• This is a complex model and needs to be introduced properly with strong support and commitment of top-management

This is where it is extremely important for organizations to understand which tool to implement for its organizations quality improvement strategy.

Prashanth has defined the EFQM business excellence model before comparing the RADAR cycle with DMAIC. And he ends it with a critical evaluation of its limitations as well, there by making it the best answer.