European Foundation for Quality Management 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. EFQM is a not-for-profit membership foundation. We are the creator of the EFQM Excellence Model which is used by over 20,000 organisations world-wide. We manage the European Quality Awards, the highest distinction given to European organisations that strive for business excellence. And, through our products and services, we are a resource to European organisations on business improvement.

Agenda EFQM Overview EFQM Today Public Sector activities EFQM Local Government Prize

Presenting EFQM EFQM Explained The Benefits Our Activities 14 Organisations Vision and Mission Current Members The Benefits Use of the EFQM Excellence Model Implementing Organisational Excellence Our Activities Management Practice Studies Model Related Recognition Networking and Member Services To present EFQM, we will do this in 3 sections. First, we will explain the background of EFQM and our mission and vision of our organisation. Secondly, we will describe the benefits of using the Excellence Model by demonstrating the results of organisations who have followed this framework. Third, we will describe the activities that make up EFQM.

Origins of EFQM To stimulate and, where necessary, to assist management in adopting and applying the principles of organisational excellence To improve the competitiveness of European Industry and to close the gap of competitiveness between Europe and US/Japan Supported by the European Commission in The European Quality Promotion Policy In 1989, 14 Presidents of leading European Organisations came together to improve the competitiveness of European Industry. The result was the European Foundation of Quality Management. Our objective was to assist businesses in adopting and applying the principles of organisational excellence. "the battle for quality is one of the prerequisites for the success of your companies and for our competitive success". - Jacques Delors, EC President EFQM Explained

The Very Beginning 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 These are the 14 organisations that founded EFQM. EFQM Explained

Key Milestones EFQM Excellence Model launched Creation of Benchmarking Services Creation of SME Award with EC support Launch of Excellence One and Levels of Excellence present 1989 1991 1992 1995 1996 1999 2001 Fundamental revision of Model First EQA in Madrid presented by King of Spain Creation of Public Sector Award with EC support To mention a few key milestones in EFQM’s history: 1. The Excellence Model was launched in 1991. 2. The first European Quality Award was presented by the King of Spain in 1992. 3. Benchmarking Services began in 1995. 4. A network of 19 partner organisations was created in 1999. Creation of Network of National Partners EFQM Explained

Vision and Mission Vision: A world in which organisations in Europe excel Mission: To be the driving force for sustainable excellence in organisations in Europe Objectives: A place to share, investigate and validate management practices that make a difference A variety of routes to business improvement and development Recognition of progress in organisational excellence through the EFQM Levels of Excellence Our vision is a world in which organisations in Europe excel. Our mission is to be the driving force for sustainable excellence in organisations in Europe. EFQM Explained

Membership Growth 14 members in our first year Over 750 members today! Rate of 70 new members each year Introduction of National Partners Across all Sectors private, public, non-for-profit all sizes, all industries Across the Globe All European countries Now extended to non-European organisations When EFQM began, our membership grew by over 70 new members each year. When our National Partner network began in 1999, this gave the opportunity for members to choose to be part of a national membership as well. EFQM Explained

EFQM Members by Country 1 Cyprus: 2 Malta:1 South Africa: 1 The Netherlands Antilles: 1 United Arab Emirates: 3 Iran : 1 7 17 750 Members in 2003 40 14 11 6 35 2 11 9 87 7 4 182 8 4 1 51 67 10 8 Our members are spread across all countries in Europe. 2 28 11 1 1 56 26 4 6 1 16 3 EFQM Explained

National Partner Organisations Network of 25 NPOs Austrian Association for Quality Bbest Center for Ledelse Center for Excellence Finland Mouvement Français pour la Qualité DGQ Deutsche Gesellschaft für Qualität Hellenic Management Association Associazione Italiana per la Qualità Excellence Norway Associaçao Portuguesa para a Qualidade Club Géstion de Calidad Swedish Institute for Quality Swiss Association for Promotion of Quality Turkish Society for Quality British Quality Foundation Centre for Competitiveness Quality Scotland Foundation Wales Quality Centre Excellence Ireland We have National Partners in various countries across Europe. These are quality organisations that are partnered with EFQM to deliver our products and services as well as their own services to their national membership. Many organisations choose to become members of both EFQM and their local quality organisation -- especially those businesses who have the need for local and global networking opportunities. Czech Society for Quality (New!) Hungarian Quality Development Centre (New!) Polish Centre for Testing and Certification (New!) Metrology Institute of the Republic of Slovenia (New!) Ukrainian Association for Quality (New!) EFQM Explained

Who is using the Model? More than 20,000 organisations across Europe 60% of Europe’s largest 25 companies 9 of the 15 European companies in the FT’s 50 World’s Most Respected Companies in 2002 More than 10,000 SMEs 20 out of the 50 Eurostock companies One question that business ask is, “Who is using the Excellence Model?” To estimate, over 20,000 organisations across Europe are using the model. These are 60% of Europe’s largest 25 companies and 20 out of the 50 Eurostock companies.  The EFQM Excellence Model is a registered trademark of EFQM The Benefits

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 Wales Quality Award More than 18 different Excellence-related Awards use the Excellence Model to identify the top businesses in Europe.  The EFQM Excellence Model is a registered trademark of EFQM The Benefits

Importance of Excellence EFQM-derived Common Assessment Framework has been adopted by Public Sector Fundamental Concepts The principles of the Excellence Model are based on 8 Fundamental Concepts. These are Customer Focus, Leadership, Management by Processes, People Development, Continuous Learning, Partnership Development, Public Responsibility, and Results Orientation. The Benefits

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 benchmarks on operating income by 56% A common question is, “Does quality improve our business? Does it impact the bottom-line?” There are many studies that demonstrate the results of applying quality and organisational excellence techniques. This study, completed by Vinod Singhal, shows that stock prices of award winners increased by an average of 114% over a five-year period. Source: Vinod Singhal, “TQM Boosts the bottom line”, April 2002 The Benefits

Triangle of Activities Three interrelated activities shaping an integrated, organisational framework underpinned by the EFQM Excellence Model Management Practice Studies Model-related Recognition Activities Networking opportunities & Member Services If we look at the products and services at EFQM, all of our activities surround the philosophy of the EFQM Excellence Model. Our Activities

Model Related Recognition The EFQM Excellence Model One set of activities is Model Related Recognition, another is Management Practice Studies, and the third is Networking & Member Services. Management Practice Studies Networking & Member Services Our Activities

Management Practice Studies Access to a live repository of Management Practices gathered through Benchmarking and Networking Management Practices Excellence One Good Practices and Benchmarking The EFQM Excellence Model Our Management Practices activities enable members to access information and benchmarking results in order to improve their business. Our Activities

Management Practices Electronic Good Practice Studies provide: A comprehensive, interactive, online learning platform for Performance Excellence Cutting-Edge Quality Management News on the latest ideas and validated practices Insights from the best organisations Over 600 pages on key management practices Discussion Forums and Virtual Communities of Practice to connect peers and specialists Benchmarking Good Practice Database Actual Reports from EQA Winners and Finalists Select by country, sector, company The first method is electronically. This provides opportunities to gather information from your office. One resource is Excellence One which is a learning platform for performance excellence. New articles are added each week that highlight the latest ideas from organisations across the world. Discussion Forums enable business managers to talk with each other on the best ways of implementing management practices. Another resource is the Good Practice Database which is an on-line system to give you access to the EQA applications of the best organisations. Our Activities

Management Practices Physical Good Practice Studies provide: An independent provider of Benchmarking Services at a Pan-European level Ability to help others with the transfer and adoption of Management Practices Common Interest Days Benchmarking Groups Benchmarking Study Projects How-to Workshops Fast Track Benchmarking Research Consortia Our Benchmarking services include Common Interest Days, Benchmarking Groups, and How-to Workshops, which provide activities to meet with your peers face-to-face and learn from each other. Our Activities

Model Related Recognition Promoting European-wide learning about the value of Organisational Excellence Levels of Excellence European Assessor Training Courses Refreshing the Model Self-Assessment Training The EFQM Excellence Model Through Model Related Recognition activities, we provide methods for organisations to measure their success and to recognise their successes. Our Activities

Deploying the Model EFQM multi-level recognition programme featuring the European Quality Award as the pinnacle Harmonisation of national and regional awards Sector-specific guidelines and Awards Model-related training programmes Research on the concept of Organisational Excellence Model-related materials including licensed training materials Printed Publications in major European Languages Electronic - Intellectual Property Agreement for Intranet use for our member organisation deployment EFQM has a multi-level recognition programme which features the European Quality Award as the pinnacle. Our Activities

Levels of Excellence EQA Recognised for Excellence Committed to • Based on the full EFQM model • Max of 75 page submission in English • Team of 4 - 8 International Assessors • Consensus and Site Visit • Enhanced Feedback EQA • Recognition at around 550+ points • Based on the full EFQM Model • 51 page structured submission in the local language Recognised for Excellence • 3 - 5 Assessors • Consensus and Site Visit • Feedback Report at criteria level • Recognition at 400+ points The Levels of Excellence programme provides a staged approach to recognition. Organisations often start by striving for Committed to Excellence and then Recognised for Excellence. • Based on the 9 criteria of the Model • 12 page Action Plan in the local language Committed to Excellence • Two stage process, assessment and site visit • Supported by one Validator • Recognition based on implementation of an Action Plan Our Activities

Networking & Member Services Enhancing networking and sharing opportunities on route to business improvement and development EFQM Events Communities of Practice The EFQM Excellence Model EFQM provides networking and sharing opportunities to our members and customers. Our Activities

Member Services Free individual access to Excellence One 10 subscriptions for A Member 5 subscriptions for B Member 2 subscriptions for C Member 1 subscription for D & Associate Member Use and disseminate freely the EFQM Excellence Model inside your organisation Free access to the EFQM Benchmarking Good Practice Database Validated Self-Assessment Methods EQA Assessor (professional development) Your EFQM Membership includes: Free access to Excellence One depending on the size of your organisation The ability to freely use and disseminate the EFQM Excellence Model Free access to the EFQM Benchmarking Good Practice Database The ability to become an EQA Award Assessor Our Activities

Member Services CEO Round Tables EFQM Forum Learning Edge Conference Training Licences Model-related educational programmes National Member Groups Targeted Newsletters Member-driven EFQM magazine Preferential rates for publications, training courses As well as: The chance to participate in CEO Roundtables Events such as the EFQM Forum and Learning Edge Conference Monthly Newsletters Preferential rates for publications and training courses Our Activities

Networking Communities of Practice Virtual Communities of Practice Drive Communities of Practice to monitor and develop good practices on a topic, in a sector, or for a function Virtual Communities of Practice Join our VCoPs which enable you to discuss with your peers and collaborate on documents together on-line EFQM Events All EFQM Events, such as the Forum, Learning Edge, Benchmarking activities, and Training, provide opportunities to meet peers & experts Other networking opportunities include: Communities of Practice, where members can develop and work together on good practices on a topic. Virtual Communities of Practice, which enable participants to work together on-line. Our Activities

Communication EFQM News EFQM Website Monthly newsletter sent by PDF to all Members Can be placed on your Intranet Making Best Use of Membership Monthly Topic Networking EFQM Internal News Calendar of Events EFQM Website Member Section Benchmarking Reports Representative Directory Membership Events

General Inquiry about EFQM Marketing & Member Relations Melissa Rancourt – Head of Department Vinciane Beauduin – beauduin@efqm.org Françoise Thomas – thomas@efqm.org Geni Luengo – luengo@efqm.org Alexis Willems – willems@efqm.org Patricia Bilteryst – bilteryst@efqm.org General request: info@efqm.org Tel: +3227753511 Fax: +3227753596

EFQM Today

Activities & News New and updated Publications EFQM Excellence Model: Large Org, SME, Public Sector Assessing for Excellence Fundamental Concepts Introducing Excellence Case Studies: Future Bank and Spectrum New Case Study: Mid-East Police Assessment Training Courses New Self-Assessment Course New European Assessor Training New pass/fail criteria for Assessed version Roll-out to National Partner Organisations European Quality Award 210 Award Assessors in 2003, 30% New Raising the standards - Set of Criteria for an Assessor

Activities & News Good Practice Visit Programme 6 visits in 2004 Members-only, Low cost Benchmarking Activities Benchmarking Group How-to Workshops Benchmarking, Balanced Scorecard, Six Sigma Scenario Planning Risk Management Good Practice Database Recently updated to last EQA applications Excellence One Peer Assist: to connect you to benchmarking partners

Activities & News Research CEO Round Tables Above the Clouds Future Studies Project Deciding on the Future of Work Feeding the next generation Model development CEO Round Tables Opportunity for Member CEOs to network and share practices

Press Press Related Events Press Page on web site: EFQM in the News & Press Releases ISO in collaboration with EFQM produced a special ISO magazine dedicated to EFQM/ISO EFQM was part of a business segment on EuroNews in March 2003 Press programme for Helsinki Forum 2003 included visit to Finnish companies from journalists Press programme for Berlin Forum 2004 currently being developed

Promotion Promotion opportunities for Members Exhibition booths available for EFQM Members EFQM Forum EFQM News Success Stories always welcome Description of New Members Listing of companies attaining Recognised for Excellence and Committee to Excellence Excellence One -- always looking for content on organisations applying successful management practices

External Relationships European Commission Involved in project to assess and audit activity of Information and Communication at the EC Part of EC Working group for tools for CSR Worked with EC to have Common Interest Day on CSR Corporate Social Responsibility Working with Global Compact Writing guidelines to manage CSR with Model Development Programme with United Nations

Public Sector

Public Sector Steering Group “Improving Public Sector Performance Group” Consist of 4 sub-groups – Communities of Practice: Education Health Government Academic Board Mission: to promote and support improvements by the use of Excellence Concepts in Public Sector Organisations

Communities of Practice Education Forum for people within the Education community Main focus are networking and partnership development, benchmarking, research and evaluation Health Sector Forum for Health care services organisations Hospitals, public health systems, general practitioners, specialists, laboratory technicians, dentistry, pharmacy, mental health care, home care, private care services, doctors, nurses, midwives, therapists and academics

Communities of Practice Local and Central Government Provide a pan European networking forum While facing some very country specific issues, there is also a number of common topics, problems and practices to share Academic Board Group of universities who run the European Masters Programme in TQM Annual Summer School

Contact Person Public Sector Public Sector Advisory Team Mr Jack Hudson Mrs Carolina Sanchez PublicSector@efqm.org

EFQM Local Government Prize Sponsored by CISCO, HP and CGE&Y

LGP - Objectives To Extend the knowledge & involvement of Local Government in continuous Business Improvement   Support E.U. initiatives relating to eGovernment  Accelerate the adoption of eGovernment with Local Authority & Regions  Here are the common objectives for all partners in the process. The common theme is that all want to understand the issues faced by local governments in improving the services they deliver to the public and, of course, finding ways to overcome those issues. The EFQM can do this through self-assessment of overall strengths and areas for improvement, the sponsors through assessment of the organisations e government position. These assessments will be part of structured recognition process described in the following slides.

LGP – Overall Process 2 Levels of Recognition Based on EFQM Levels of Excellence scheme and E-Readiness tools Culminates in annual European Prize/Prizes In general the scheme will have two levels of potential recognition. These are based on the EFQM Levels of Excellence scheme and E-Readiness - a tool developed by CISCO with input from HP and CGE&Y. The EFQM Levels of Excellence elements will be delivered at a National level by the EFQM National Partners or the EFQM directly where no partners exist. The E-Readiness element will be delivered by CISCO and the other sponsors as appropriate. The final objective is to award a prize (or a number of prizes) at each level of recognition at a European levels. So how does this work?

LGP – Process Level 1 Apply to NPO/invited to apply for Committed to Excellence (C2E) Undertake E-Readiness Successful at both - receive national recognition Possible referral for European Prize at level 1 The Local Government organisation will apply or be invited to apply to take part in the scheme mainly through the EFQM’s National Partners. Where no National Partner exists the EFQM will operate in that position. At the time of application they will have decided that they wish to apply for Level 1 or Level 2 recognition. Those applying for Level 1 will Undertake Committed to Excellence - The next slide has a high level description of this. If they are successful they will receive the usual recognition Have an assessment against the E-Readiness tool - which is based on the CISCO net Readiness tool with additional input from HP and CGE&. If they are successful they will receive a certificate If they are successful for both - they will receive a certificate and prize at the National Level. The NPO’s will select their best applicants to go forward to the European Prize at Level 1. Members of the sponsor organisations will form a Jury to determine European Prize Winners.

LGP – Process Level 2 Apply to NPO/invited to apply for Recognised for Excellence (R4E) Undertake E-Readiness Successful at both - receive national recognition Possible referral for European Prize at Level 2 The Local Government organisation will apply or be invited to apply to take part in the scheme mainly through the EFQM’s National Partners. Where no National Partner exists the EFQM will operate in that position. At the time of application they will have decided that they wish to apply for Level 1 or Level 2 recognition. Those applying for Level 2 will Undertake Recognised for Excellence - The next slide has a high level description of this. If they are successful they will receive the usual recognition Have an assessment against the E-Readiness tool - which is based on the CISCO net Readiness tool with additional input from HP and CGE&. If they are successful they will receive a certificate If they are successful for both - they will receive a certificate and prize at the National Level. The NPO’s will select their best applicants to go forward to the European Prize at Level 2. Members of the sponsor organisations will form a Jury to determine European Prize Winners.

LGP – European Prize NPOs and EFQM nominate best applicants from National Levels Citation forwarded to Jury Jury = EFQM, Sponsors and EC representative Jury select prize winner/winners at each level Presented during annual EFQM Forum As noted before NPOs and EFQM will select the best applicants at each level to enter the process for the European Prize. Although the process is still to be fully defined this is likely to take the form of a citation in English (National processes will likely have been conducted in the national language). A jury consisting of representation of EFQM, CISCO, HP, CGE&Y and possibly someone from the EC will look at all those nominated, and select either one or more recipients for each level to be the EFQM Local Government Prize Winners - European Level. These prizes (certificates, trophies etc) will be presented during the annual EFQM Forum. In 2004 this is held in Berlin November.

LGP – Applicants Benefits Structured methods for identifying strengths and areas for improvement and implementing improvements Financial assistance through sponsorship to implement processes and gain recognition Processes fit with requirements from ALL governments to identify improvements and improve services and performance So what are the benefits apart from the tangible recognition to entering this scheme? First applicants will be given tools and described process that will help them in a structured way to identify improvements or improvement activity both in terms of the organisation overall and in particular to the e aspects of the organisation. Secondly, the sponsorship provided by CICO, HP and CGE&Y will give financial assistance to organisation to enter these processes. Finally, the processes adopted by the organisations entering the EFQM Local Government Prize scheme will not be just something extra required by organisations. They fit well with the requirements and pressures from all governments, and citizens, to identify improvements and as a result of this improve services and performance.

Contact Person EFQM Local Government Prize: Project Advisor Mr René-Charles Tisseyre tisseyre@efqm.org Mrs Margot Van Zon vanzon@efqm.org

European Foundation for Quality Management 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.