This article contains content that is written like an advertisement. (June 2019)
|Formation||September 15, 1988|
|Founders||Jacques Delors, Umberto Agnelli, Carlo De Benedetti, Carl Hahn, sv:Anders Scharp, Jan F.A. de Soet, nl:Cor van der Klugt, Serge Dassault, Heini Lippuner, fr:Raymond Lévy, Francis Lorentz, Konrad Eckert, Iain Vallance, Fritz Fahrni, R. Morf|
|Legal status||Not-for-profit member foundation|
|Purpose||Promotion of business excellence|
|Services||Training, organizational assessments|
|Paul G.K. Little|
|Board of directors|
|European Foundation for Quality Management|
EFQM (the European Foundation for Quality Management) is a not-for-profit membership foundation in Brussels, established in 1989 to increase the competitiveness of the European economy. The initial impetus for forming EFQM was a response to the work of W. Edwards Deming and the development of the concepts of Total Quality Management.
The intention to found EFQM was signed in October 1988 by 14 European business leaders. The 14 CEOs were:
|Company||Representative Business Leader|
|Robert Bosch GmbH||Mr. K. Eckert|
|British Telecommunications plc||Mr. I.D.T. Vallance|
|Bull SA||Mr. F. Lorentz|
|Ciba-Geigy AG||Mr. H. Lippuner|
|Dassault Aviation||Mr. S. Dassault|
|AB Electrolux||Mr. A. Scharp|
|Fiat Auto SpA||Mr. U. Agnelli|
|KLM||Mr. J.F.A. de Soet|
|Nestlé||Mr. R. Morf|
|C. Olivetti & C., SpA||Mr. C. De Benedetti|
|Philips||Mr. C.J. van der Klugt|
|Renault||Mr. R.H. Lévy|
|Sulzer AG||Mr. F. Fahrni|
|Volkswagen AG||Mr. Carl H. Hahn|
The foundation was formed in 1989, with 67 members. The first version of the EFQM Excellence Model was created by a group of experts from various sectors and academic institutions and launched in 1992. It acted as the framework for assessing applications for the European Quality Award, the transnational quality awards of Europe.
EFQM provides networking, education, and awards by using a framework called the EFQM Excellence Model.
EFQM excellence model
A number of research studies have investigated the correlation between the adoption of holistic models such as the EFQM excellence model, and improved organizational results. The majority of such studies show a positive link. One tangentially related study was carried out by Vinod Singhal of the Georgia Institute of Technology and Kevin Hendricks of the College of William and Mary.
The EFQM model provides a framework allowing organisations to determine their current "level of excellence" and where they need to improve their efforts. The model also helps to ensure that business decisions incorporate the needs of all stakeholders and are aligned with the organisation's objectives.
In comparison with the other counterparts ( OKR ), EFQM relatively performs well but organisations need to use both the models to cater different section of employees.
The model is used by about 30000 organisations across Europe. In recent years, more and more countries started implementing the Model, especially across Middle East and South America.
EFQM Excellence Award
The EFQM Excellence Award is run annually by EFQM. It is designed to recognize organizations that have achieved an "outstanding level of sustainable excellence", based on assessment against the EFQM Excellence Model.
- K. Hendricks & V. Singhal (1996). "Quality Awards and the Market Value of the Firm: An Empirical Investigation". Management Science. 42 (3): 415–436. doi:10.1287/mnsc.42.3.415.
We note that the abnormal returns generated by the quality award winning announcements provide a lower bound for the impact of implementing an effective quality award improvement program. Our results show that the stock market reacts positively to quality award announcements
- EFQM (2012). "Revised EFQM Model to Help Increase Europe's Competitiveness". www.prnewswire.com. Retrieved 2017-01-01.
- "Kostka in Calabria awarded". Retrieved 1 January 2017.[permanent dead link]