Why non-financial results are of crucial importance

The EFQM Management Document
PostedJuly 17, 2013, in  Step 5: improve & innovate
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Some find it an impossible task: how to convince financial managers of the importance of non-financial business results? Yet the answer is quite simple: shows the effects of non-financial criteria on financial criteria. As argued last week, the solution lies within the EFQM Model. Please meet the Integrated Report of EFQM: the EFQM Management Document.

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Excellence in Action (source: EFQM).

Clear relationship

The basic idea of the EFQM Excellence Model is that enablers (leadership, strategy, people, partnerships and resources, and processes, products and services) determine the results for customer, employee and society and collectively influence, if not determine, the (financial) business results. In short, there is a clear relationship between non-financial and financial parameters.

Valuable insights

The EFQM Management Document maps in detail how an organization implements its strategy. This is mainly used when applying for EFQM recognition, but more and more organizations discover the value of the EFQM Management Document. Creating the document leads to valuable insights, because:

  • It is a non-bureaucratic way to identify and capture core activities, improvement measures and results. Because of this helicopter view it is an effective management tool.
  • It is a tool to prioritize and maintain focus. As a result, improvement measures are implemented faster and more efficient.
  • The document helps with creating involvement and getting support from stakeholders.
  • Finally, this document effectively helps to execute the core strategy.

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Mgt. doc. example for results (source: EFQM)

Only 3 parts

The EFQM Management Document consists of three parts only, successively:

  1. Key information: a summary of the strategy, structure, stakeholders and environment of the organization (5-10 pages).
  2. Results: An overview of business performance in relation to the strategic goals (5-10 pages).
  3. Enablers: description of the approaches and resources used and deployed to achieve the strategic goals (10-15 pages).

Tools

By means of a self-assessment based on RADAR, the EFQM Document Management is created. To support this process two Excel tools have been developed:

  1. The EFQM Business Excellence Matrix (BEM): the enablers are reviewed based on 10 elements (two per EFQM Model criteria). The result is a simple Enabler Map with 50 approaches.
  2. The EFQM Assessment Matrix (AM): an extended Enabler Map can be created, where as many as 96 approaches can be defined. If required, previous data from the BEM-tool can be pre-loaded.

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Mgt. doc. example for enablers (source: EFQM)

Want to know more?

For EFQM-members free tutorials are available in the Knowledge Base. Not a member but interested? Please contact us.  

 

Next week: will the true leader please rise? An introduction to the EFQM training Leaders for Excellence.



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PostedJuly 17, 2013, in Step 5: improve & innovate
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