EFQM Overview

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(No Transcript)
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Measuring the Quality Standards of your Chamber
Eurochambres Academy Sigtuna Stockholm, Sweden 4
July 2002
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Presenting EFQM

• Introductions
• Background of Participants
• Expectations of Course
• EFQM Overview
• What is Quality?
• Different Methods
• Using an Excellence Model
• Coffee Break
• Self-Assessment
• Case Study Chamber of Commerce in Nice
• Follow-up Questions

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Introductions

• Melissa Rancourt, EFQM

MBA - Entrepreneurship
Industrial Engineering
Operations Management
Public Sector and Non-Profit Organisations
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Our Group

• Represented by 9 Chambers
• ? Santiago ? Costa Rica
• ? Bradford ? Mexico City
• ? Austria ? Stockholm
• ? Tampere ? Sheffield
• ? Yugoslav

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Expectations

• Dealing with the challenge of culture
• How do I ensure buy-in from all staff?
• Ensuring sufficient time and resources commitment
  from within the organisation
• Dealing with confusion of a multitude of
  standards
• How do I network with others on this topic? What
  are my resources?
• How do I measure intellectual work?
• What are everyones experiences with measurement?
• What are other Chambers doing to follow a quality
  framework?

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EFQM Described
EFQM, a not-for-profit membership foundation, -
is the creator of the EFQM Excellence Model, -
manages the European Quality Awards, and - is a
resource to European organisations on business
and continuous improvement disciplines, tools
and techniques.
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The Origins of EFQM

• Located in Brussels, Belgium
• Founded in 1989 by 14 leading European
  organisations
• ? BT plc ? KLM - Royal Dutch Airlines
• ? Robert Bosch GmbH ? Nestlé AG
• ? Bull SA ? Philips Electronics NV
• ? Ciba-Geigy AG ? Ing. C. Olivetti C.S.p.A.
• ? Dassault Aviation ? Renault
• ? AB Electrolux ? Gebr. Sulzer AG
• ? Fiat Auto Spa ? Volkswagen AG

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Vision and Mission
VisionA world in which organisations in Europe
excel
MissionTo be the driving force for sustainable
excellence in organisations in Europe
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The Quality Game
Define Quality
Name that Tool
Acronym Craze
Company Match
Buzz Words
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For 1 point!

• Name 3 words that come to mind when you hear the
  word QUALITY.

Answer Excellence Speed Customer
Service Management People Customer
Product Appearance Service Satisfaction TQM Re
sults Performance Cost Efficiency Mission Stra
tegy Recognition
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For 1 point!

• A picture of squares, triangles, and other shapes
  that demonstrate the steps of an activity.

Answer FLOWCHART
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For 1 point!

• What does TQM stand for?

Answer Total Quality Management
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For 1 point!

• When I think of Quality and FOOD, this company
  comes to mind...

Answer Restaurant, Brand, Specific Product,
Supermarket, ...
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For 1 point!

• Describe BENCHMARKING.

Answer A systematic and continuous measurement
process a process of continuously comparing and
measuring an organisation's business processes
against business leaders anywhere in the world to
gain information which will help the organisation
take action to improve its performance.
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For 2 points!

• What would be your FIRST step to implementing a
  Quality programme in your Chambers?

Answer Define the goal. Review the business
strategy. Define the key stakeholders.
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For 2 points!

• I would like to get a list of ideas from a group
  of people. What is one way to organise this?

Answer BRAINSTORMING
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For 2 points!

• What does ISO stand for?

Answer International Organization for
Standardization
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For 2 points!

• When I think of Quality and TRAVEL, this company
  comes to mind

Answer Airlines, Travel Agencies, Trains, Local,
National, International, ...
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For 2 points!

• Describe BALANCED SCORECARD.

Answer A set of vital measures or key figures
giving information on the performance and the
achieving of targets of the whole business
operation of a company. The long-term set of
measures chosen reflects all areas where the
organization has set strategic targets, such as
customer satisfaction, financial returns,
shareholder value, quality, operational
excellence, innovation potential, people
satisfaction, public image, etc.
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For 3 points!

• Complete this sentence. Excellence is

Answer - achieving results that delight all the
stakeholders. - creating sustainable customer
value. - visionary and inspirational
leadership. - managing the organisation through a
set of systems, processes, and facts. -
maximising the contribution of employees through
their development and involvement.
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For 3 points!

• I need to measure an activity and would like to
  make sure that the process stays within certain
  limits. How can I show this?

Answer CONTROL CHART
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For 3 points!

• What does CSR stand for?

Answer Corporate Social Responsibility
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For 3 points!

• When I think of Quality and SERVICE, this company
  comes to mind

Answer Work-related, Life-related, Products,
Chains, Size, ...
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For 3 points!

• Describe KNOWLEDGE MANAGEMENT.

Answer Knowledge management is the systematic
process of identifying, capturing, and
transferring information and knowledge people can
use to create, compete, and improve.
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Business Imperatives

• In our world today, we need to...
• Define a new approach to strategy and planning
• Become innovative, fast, flexible.
• Manage, create, and share knowledge.
• Align and engage people more effectively.
• Develop better leaders.
• Understand the drivers behind business results.

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Another Framework
The EFQM Excellence Model is a good practice
management framework. This framework is built on
a set of underlying values and a belief system
about the purpose, position and impact of
organisations.
? The EFQM Excellence Model is a registered
trademark of EFQM
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Excellence Model

• Based on these Fundamental Concepts
• Customer focus
• Partnership Development
• People development and involvement
• Management by Processes and facts
• Continuous learning, innovation and improvement
• Leadership and constancy of purpose
• Corporate social responsibility
• Results orientation

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Excellence Model

• Why do companies use this Model?
• To give a realistic view of how good they are.
• To identify where to focus improvement effort
• To bring initiatives together into a single
  framework
• To encourage the sharing of internal and external
  good practice
• To understand the drivers behind business results
• To provide a common language
• To create a balance between different stakeholder
  groups

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Who is using the Model?

• More than 20,000 organisations across Europe
• 60 of Europes largest 25 companies
• 9 of the 13 European companies in the FTs 50
  Worlds Most Respected Companies in 2001
• More than 10,000 SMEs
• 20 out of the 50 Eurostock companies

? The EFQM Excellence Model is a registered
trademark of EFQM
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Who is using the Model?

• More than 18 different Excellence-related Awards
  throughout Europe
• European Quality Award
• Austrian Quality Award
• Belgian Quality Award
• Danish Quality Award
• Irish Business Excellence Awards
• Finnish Quality Award
• French Quality Award
• Ludwig Erhard Award
• Italian Quality Award
• INK Prize (based on Model)
• Northern Ireland Quality Award
• Norwegian Quality Award
• Excellence Award, Portugal
• Scottish Award for Business Excellence
• Swedish Quality Award
• Esprix Swiss Quality Award for Business
  Excellence
• UK Business Excellence Award
• National Quality Award Turkey

? The EFQM Excellence Model is a registered
trademark of EFQM
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The Impact of Excellence

• Does Quality impact the Bottom-Line?
• Study shows that stock prices of award winners
  increased by an average of 114 over a five-year
  period
• Winners improved sales by 69, total assets by
  79
• Award winners outperformed their benchmarks on
  income by 56

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91
90
Award Winners
80
69
70
Benchmark Firms
60
50
Percent Change
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40
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30
20
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9
6
10
1
0
Operating
Sales
Return on
Return on
Income
Sales
Assets
Source Vinod Singhal, TQM Boosts the bottom
line, April 2002
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Coffee Break
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Self-Assessment

• A comprehensive, systematic and regular review by
  the organisation of its activities and results
  referenced against a model of Excellence.
• Allows an organisation to discern clearly its
  strengths and areas in which improvements can be
  made and results in planned improvement actions
  that are then monitored for progress.

? The EFQM Excellence Model is a registered
trademark of EFQM
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Self-Assessment Process

• Step 1 Develop and Retain Commitment.
• The success and sustainability of your
  Self-Assessment process depends upon the active
  ownership by your Senior Managers.
• Senior managers will buy into this if
• they understand how it adds value to the business
• it meets some of their needs to improve or change
  the business
• it offers the opportunity for public or peer
  recognition.

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Self-Assessment Process

• Step 1 Develop and Retain Commitment.

How do you create commitment and buy-in in your
Chamber?
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Self-Assessment Process

• Step 2 Develop and Deploy a Communication
  Strategy.
• What messages do you need to communicate?
• Why do you need to communicate?
• Who do you communicate to?
• Who should communicate?
• How?
• When?
• Where?

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Self-Assessment Process

• Step 3 Plan your Self-Assessment.
• Consider Benefits Outcomes, Resources,
  Maturity, Culture
• Choose your technique.
• Questionnaire
• Assessment Workshop
• Pro-Forma
• Award Simulation
• Combination

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Self-Assessment Process

• Step 4 Define the roles of individuals.
• Sponsors
• Project Manager
• Staff
• Experts
• Assessors
• Data Gatherers
• Report Writers
• Facilitator

Who do you involve?
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Self-Assessment Process

• Step 5 Conduct the Self-Assessment.
• Step 6 Consider outcomes and prioritise.
• Step 7 Establish and implement action plans.

What process do you use for implementing a
quality programme?
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Case Study

• Chamber of Commerce of Industry Nice Côte dAzur
• Democratic institution
• Managed by an Assembly of 52 members
• Elected from 54,000 commercial, industrial and
  service providers
• Public Establishment
• Under Authority of 3 Ministries Finance
  Industry, Transport, National Educational
• Service Providing Enterprise
• Coaching of Enterprises
• University and Professional Education
• Management of two airports, four ports

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Case Study

• Chamber of Commerce of Industry Nice Côte dAzur
• 27 Locations through the Apes-Maritimes with
  headquarters in Nice
• 1015 Employees
• 39 executives
• 36 supervisors
• 25 other employees

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CCI Nice

• Vision
• We would like to be the most performing in the
  public sector in Europe in serving local
  economical development.
• Mission
• We have six principal missions
• Representation of local enterprises
• Observation and presentation of economical
  information
• Economical coordination
• Coaching and consulting to enterprises in the
  management of their transformation
• Basic, higher and continued education
• Management and development of equipment of
  infrastructures

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CCI Nice

• Strategic Objectives
• Continue the implement of services for
  enterprices based on a politic of proximity and
  territory
• Contribute to the set-up of enterprises in
  selection of projects and by research for
  investors
• Consolidate and develop our activities within
  professional education
• Town and country planning -- intensify our
  actions to promote an entrepreneurial Côte dAzur
• Continuous improvement of our Total Quality
  Management

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Leadership

• CCI Nice
• Yearly Action Plan for the excellence approach
  with yearly objectives
• Leader participation in 400 department, regional,
  national, international organisations
• Close to 100 of our leaders has daily
  involvement with customers, partners and the
  society by meetings and working groups
• Organisational and Productivity Audits are done
  to measure productivity and ensure objectives are
  achieved.

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Leadership

• Questions
• What is the Leadership style within the
  organisation?
• What are the priorities that Leaders consistently
  pay attention to?
• How do Leaders work in partnership with Key
  Stakeholders?

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People

• CCI Nice
• Better formalisation of the measurement and
  review of HR approaches.
• Goal to define an approach to encourage
  suggestions and innovations by employees
• Annual people satisfaction survey is reviewed
  every year
• ISO Certification of the present management of
  competencies
• Establishment of an approach of Center of
  Responsibilities (CR).

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People

• Questions
• How do you identify and develop the skills of
  your employees?
• What opportunities are provided to enable
  employees to participate in improvement
  activities?
• What policies exist to motivate and recognise
  employees?

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Policy Strategy

• Questions
• What information do you collect and use to define
  your market?
• What are the key strategic goals of the
  organisation?
• Describe your planning process.

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Partnerships/Resources

• Questions
• Who are your key partners?
• How does the organisation manage technology in
  support of the strategy?
• How is information and knowledge collected and
  managed within the organisation?

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Process

• Questions
• What are your key business processes?
• How are products and services produced and
  delivered to the customer?
• How do customers gain access to your
  organisation?