The importance of the EFQM Excellence Model in a sustainable society

Last week I mentioned that it is time for Third Generation Quality Management (3GQM). It is time for a method that makes a significant contribution to a more sustainable society. It is time for EFQM - The Next Level.

Buzzword

'Sustainability' is a buzzword that everyone has an opinion about. But what is sustainability anyway? Anyone who consults the Glossary of the EFQM Model 2013 brochure will be disappointed: sustainability is not even in there...

But is it really a problem if sustainability plays a limited role? That depends on your ambition. The vision of EFQM - 'A world striving for sustainable excellence' - indicates a clear desire to be recognized as a Global Role Model. This is supported by one of the core values: ‘We develop partnerships that generate mutual benefits for the community.’

Focus and vision

Sustainable excellence goes beyond the pursuit of business excellence. This requires more than an 'inside-out' perspective on the quality of the internal organization. Our global economy calls for a broad view on the world and to have a clear idea of the organization, however small, how to fulfil its role in it. In this context it is important for the EFQM Model 2016 that we have a discussion about:

• What is the role of the EFQM Excellence Model in a sustainable society?

• What is the ambition of the EFQM community? 

• What definitions will we use in this context?

Clear compass

Clear principles make the targets transparent. The four sustainability principles of The Natural Step Framework are useful guidelines towards a more sustainable way of thinking and doing, and thus towards a sustainable society. These scientifically based sustainability principles provide a compass which inspires more and more organizations.

Combining principles & criteria

The sustainability principles are easy to combine with the EFQM Excellence Model criteria. In first instance, of course, with the criterion Leadership and the Vision of the organization. The strength of the EFQM Excellence Model to help organizations achieve their strategy in combination with a vision in which the organization defines her role in a sustainable society brings Third Generation Quality Management very close to home! 

New website

Like the EFQM Model Improve4all continues to develop. Next week the new website will go live - including this blog. It is time for change. It's time for Improve4all - The Next Level. You have been warned!

EFQM: The Next Level

Next to customer results and employee results society results are an equally important factor in the EFQM Excellence Model. However looking at the average scores EFQM Excellence Award (EEA) applicants have received for society results the past years this is not evident. What does this mean? And how can we change that?

Looking out for society
In the EFQM Model 2013 the Fundamental Concept Creating a Sustainable Future (CSF) is defined as: ‘Excellent organizations have a positive impact on the world around them by enhancing their performance whilst simultaneously advancing the economic, environmental and social conditions within the communities they touch.'
How does this wonderful definition connect to reality? Do excellent organizations really have a positive impact on the world around them?

Relative versus reality
To answer these questions the feedback reports of 19 EFQM Excellence Award assessments (from 2010 to 2012) were reviewed. These reports were selected because of their 'high scores’ on society results (EFQM criteria 8). ‘High’ defined as scoring at least 60 points (of 100). Relatively speaking this is a lot as over the years society results on average have scored 'low' with only 45 points, where all the other criteria averaged scores between 58 and 62 points!

Role models
From the analysis of these 19 feedback reports only three really good examples regarding ‘society results’ could be identified: Red Eléctrica de España (Spain), Coca-Cola Ýçecek (Turkey) and Umicore Precious Metals Refining (Belgium). These role model organizations all have certified ISO9001, ISO14001 en OHSAS18001 management systems in place, but more importantly they survey the perceptions of society, have integrated sustainability into their strategy and publish a sustainability report.
But this also means that scoring relatively high on society results does not yet tell us much about how 'focused' the organization towards ‘society’ really is.

Attention
The purpose of implementing the EFQM Model is to achieve balanced results, because we believe that this the basis for continued organizational success. Although societal / sustainability issues are in the news every day these days, even the EEA-applicants to date do not seems to be able to attain the same level of results for society as for the other results criteria. A point of attention!

EFQM: The Next Level
This year the EFQM Model celebrates its 25th anniversary. Through the years the EFQM Model has been updated. Valuable and necessary updates have been done, but no structural changes were made. Maybe it is time for EFQM – The Next Level. Curious about that? More next week!

Why we need enlightened leaders

It is a known fact: at some point the oil will run out. To continue to provide food and shelter to the growing population in the world, we produce continuously. And with that, we consume more and more energy and that inevitably will lead to problems. Fortunately, there are solutions.

Self-sufficiency
The first steps towards to provide sustainable energy have been taken, but this is not enough. At the current pace it will take a long time for sun, water and wind to become our main sources of energy. The speed must increase, and that is precisely the purpose of the Vision 2050: a roadmap towards a self-sustaining planet.

Illustration: Ivo va Leeuwen.

Changing the rules of the game
Businesses should also contribute to this, but that requires some ‘enlightened leadership’. According to Peter Bakker - President of the World Business Council for Sustainable Development (WBCSD) - there are (far) too few business leaders with a sustainability vision. So, the rules of the game must change. Together with the International Integrated Reporting Council (IIRC), the WBCSD drafted a framework for Integrated Reporting: a new way of reporting where not only financial data, but also the way value is created is playing a part. The main question: what are the social consequences - for humans, for animals and the environment - of the business activities?

Good example
It may sound complicated 'Integrated Reporting', but it is not too bad. The SAP Integrated Report 2012 is a good example of a report in which the non-financial results are clearly presented. Their rationale: ‘When products touch millions of people, safety and innovation go hand in hand.’

Leadership
Integrated Reporting is the result of ‘integrated’ management, which is the result of the 'integrated' strategy. At the core lies the 'integrated' vision. And who defines the vision of the organisation? Precisely: the leaders! As the EFQM Excellence Model 2013 under the criterion Leadership proclaims: ‘Leaders develop the mission, vision, values and ethics and act as role models’.

Sustainable future
For all organisations who do not know where to start: use the EFQM Excellence Model! Developed already 25 years ago, but still effective in providing organisations with a clear roadmap towards a sustainable - financial and non-financial - future.

New winners, new books, new challenges

Nothing lasts forever. Projects are started and completed. New insights lead to new publications and new role models. And be warned, because the EFQM Excellence Award assessment teams are on the move again…

Who will be the 2013 EFQM Excellence Award Winner?
As every year in January and February EFQM put the EEA-assessment teams together. After an individual preparation period, in March all teams met up in Brussels for the 'briefing event’. During a relaxing and inspiring get-together the groundwork for the EFQM Excellence Award assessments in May / June was completed. The big question is always which organizations will receive the honours this year. In October at the EFQM Forum in beautiful Vienna the EEA 2013 winners will be announced!

Briefing event EFQM assessment teams.

Book Launch
The role and responsibilities of companies are under discussion. The central question is: how can organizations simultaneously serve multiple stakeholders, both inside and outside the organization? The goal: a balanced use of the four forms of capital, being social, human, environmental and financial.
The new Dutch book Derde Generatie Kwaliteitsmanagement (third generation quality management) describes the search for existing and new insights in the field of quality management. As Improve4all I contributed to this book with a chapter on the role and importance of social results in the EFQM Excellence Model.
The book will be presented on 30th of May, during the 17th National Quality Congress in the Netherlands. As Improve4all I will provide a workshop on the EFQM-chapter in the book.

Sustainability Report 2012 for ASML 
Sustainability is not a one trick pony, but a continuous process. Similarly, neither was the creation of the 2012 Sustainability Report for the Dutch chip machine manufacturer ASML. The report was completed over a period of six months, a time in which many aha-moments were experienced providing a nice base to build upon.

Every beginning has an ending...
After more than two years the challenging interim management assignment at ASML as come to an end. As Corporate Sustainability Manager I have enjoyed the pleasant cooperation with people on all levels in the organisation. ASML is a vibrant company with innovation at the core of its being.
I will continue as sustainability professional looking for new challenges in the context of creating a more sustainable world. And for me too innovation, in the way we think and act, is at the top of my priority list!

Change is coming!

The world is changing at a fast pace. The population is growing explosively and consumption is growing with it. We cannot remain bystanders while we eat the planet. These words come from Paul Polman, CEO of Unilever, one of the world’s largest producers of nutrition, hygiene and personal care. Companies play a role in the world of tomorrow, but how?

Abiding the law
National and international laws are often the decisive factor for the behaviour of companies: as long as the laws are respected, it is good. But is that enough for a sustainable future? Polman does not think so: 'CEOs need to understand that they cannot be bystanders anymore. They need to move from a license to operate to a license to lead and take on an active role.'

Ambition
At Unilever they put their money where their mouth is: in the Sustainable Living Plan Unilever expresses their ambition: by 2020 halve the impact while doubling turnover. Unilever does not yet know how to achieve this, because this requires many innovations throughout the supply chain. However this does not result in Unilever playing the waiting game. On the contrary: they publicly announced this ambition making clear it is optional any longer. Moreover they are completely transparent about where they are now.  By publishing a 'wish list' with innovation areas they invite stakeholders throughout the value chain to support them in finding better solutions. This creates a proactive focus on society making it a fixed part of the strategy of the business.

Collaboration
Of course there are risks: there is relatively little attention for the real problems in the world, globally confidence is low and the powerful internet can make or break a company. At company level there are problems with managing the value chain: we know little about where our raw materials and semi-finished products come from and under which conditions these have been created. So we need transparency and cooperation: we really cannot do it alone.

Paul Polman, CEO Unilever: 'Shape, share and stimulate.'

Exemplary Role
The powerful product brands are perfectly capable to fulfil an exemplary role. Think of the soap brand Dove where Unilever in their campaigns emphasized the importance of washing your hands, or using a food brand to support educational programs around eating healthy. The possibilities are endless and are sometimes simply obvious. Mostly it is a matter of wanting to do it and then making it happen. Or, as Polman puts it: shape, share and stimulate.

How happiness can make any company stronger

Today - Wednesday, 20 March 2013 - is a special day. It is the first International Day of Happiness, proclaimed by the General Assembly of the United Nations, because the pursuit of happiness is a fundamental human need. But what is happiness anyway? And what does this mean to companies?

Putting people first

The status of a country is usually deduced from their Gross National Product: the total value of all goods and services produced in a given period. Not in Bhutan, where King Wangchuk in 1972 developed a new measure: Gross National Happiness. On the basis of 33 indicators the 'turnover' of the country is measured, including health, psychological well-being, education, culture, governance, community, ecology, living standards and the use of time. In Bhutan they look further than their pay check, people come first. Notwithstanding these noble initiatives, there are also critics: many measures are subjective and negative developments (such as crime) are not deducted. But still, we can learn much from Bhutan.

Mental health

Over the years Bhutan has become an inspiration. In 2012 the Earth Institute published - commissioned by the United Nations - the World Happiness Report. Some notable conclusions in it:
- 'Rich' countries are happier than 'poor' countries. This does not mean more money, because the strength of the social safety net, the degree of personal freedom and the absence of corruption have a bigger impact on happiness;
- Job security and good working relationships are more important than salary and working hours;
- In each country, the most important factor is: the mental health of its population.
How entrepreneurs can use this knowledge?

Illustration: Ivo van Leeuwen.

True faith

Ricardo Semler is the CEO of a Brazilian company called SEMCO. He is a man devoid of authoritarian structures. This is proved by the fact that on his first day as CEO he fired as much as 60% of his executive team. Multiple times Semler was proclaimed 'Brazilian businessman of the year’ because of his unorthodox management style. SEMCO is characterized by an open culture with lots of room for personal initiatives: there are no fixed working hours, no dress code and a minimal number of procedures. The company consists of independent cells where every employee has access to and participates in de business, even on financial level. The employees have real freedom, there is a genuine trust. And it pays off, because annually SEMCO grows 25% on average!

Fun

Actually, the message is simple: the happier employees are, the better they perform. Ensure that people are genuinely involved in the organization and enjoy their work, that's the point. Or as Semler himself puts it: "If we do not let people do things the way they do, we will never know what they are really capable of and they will just follow our boarding school rules."

Practicing sustainability difficult? Of course not!

Often there is a world of difference between theory and practice. How to make the transition from model to reality? How to implement a sustainability strategy? When using the EFQM Excellence Model that is not so difficult.

Sustainability
From the very beginning the EFQM network felt ‘society’ needed to be one of stakeholders in the EFQM Excellence Model. And as a result the interests of the public at large have always been part of the values underpinning the criteria of the model. These values, there are eight, are called the Fundamental Concepts of Excellence. In the 2013 revision of the model the ‘society concept’ is titled: "Creating a Sustainable Future".

Good management
The EFQM network always considered the EFQM Excellence Model to be a 'sustainable model'. Implicitly, but also explicitly, society is part of the EFQM model criteria and sub-criteria. And during more recent evaluations of the EFQM Excellence Model 'having a positive impact on society’ has become even more apparent as one of the principles of ‘good management’ according to the EFQM.

Illustration: Ivo van Leeuwen.

 Supply chain
To create a sustainable balance between the interests of companies, people and the environment (people, planet, profit) strategic focus should be directed towards international socially responsible supply chain management. This supply chain approach is also the point of attention in the debate on transitioning from a linear economy to a circular economy, going from ‘take-make-waste' to 'borrow-use-return'. All this goes far and beyond the realized positive or negative impact of the company itself.

Golden combination
Using The Natural Step Framework an organization develops a sustainability strategy with the planet as one of the stakeholders. With the EFQM Excellence Model, consisting of the Fundamental Concepts, the nine criteria of the EFQM Model and RADAR, this sustainability strategy can be implemented. Using the EFQM Excellence Model an organization can develop a culture of excellence, bring consistency in the management style, compare themselves to the good examples of others and encourage innovation to improve results. The Natural Step and the EFQM Excellence Model are therefore sustainability’s golden combination.

The planet is everybody’s stakeholder

Sustainability is about creating the kind of world we want for ourselves, our neighbours, and future generations. It challenges us to live our lives and make decisions as individuals, organizations and societies so that we make sure that future generations have access to the same opportunities and quality of life that we do. How do we get there?

Shared Value
In 2013 sustainability plays an increasingly important role. 'Creating Shared Value', that is what it is about these days: "The concept of Shared Value - which focuses on the connections between societal and economic progress - has the power to unleash the next wave of global growth." The thinking is that every business is part of society and therefore has a role to play in societal development. By understanding these developments and examining how a company can make a positive contribution, shared value is created that benefits both the company and society.

Society
The challenge lies in recognizing the stakeholder groups within in the ‘society category’. Focus quickly is put on local communities, local authorities, non-governmental organizations and universities. Still we insufficiently realize that 'our planet', which is threatened by pollution, destruction and overconsumption of raw materials, is an important stakeholder of us all. This is crucial piece of awareness when designing a global durable balance between the interests of companies, people and the environment (people, planet, profit).

Cost reduction
It is a noble aim, but to date, the focus of sustainability in organizations is mainly relating to measures that increase efficiency: less waste, less transport and less resources. These objectives have one thing in common: cost reduction. There is nothing wrong with that, but this is different from taking responsibility for the entire product, from raw materials suppliers to the end consumers.

The Natural Step
Our planet is at the center of The Natural Step (TNS) Framework. TNS is a tool for strategic sustainable development that uses a '5-layer framework'. To prevent that organizations get lost in the details of problems, TNS looks at the causes 'upstream' on planet level. Through the method of 'backcasting from sustainability principles' a sustainability strategy is developed.
Sustainability is a complex issue. To make sure the actions resulting from the sustainability strategy are realised, the TNS Framework is best used in conjunction with other tools. In my next post I will discuss the use of the EFQM model in relation with The Natural Step Framework.

Not using RADAR? Missed opportunity!

‘To measure is to know’, the saying goes. True words, because what is the point of setting up management systems if you do not know how effective they are? Which manager does not want to know how the organization is doing and where improvements are needed? Fortunately the EFQM Excellence Model provides us with this practical tool that every organization can use every day: RADAR!

Question your performance
RADAR stands for Results, Approach, Deployment, Assessment and Refinement. As part of the EFQM Excellence Model, RADAR is used by assessors as the scoring mechanism for the EFQM Excellence Award and other recognition or assessment schemes. However RADAR is a tool that can be used by everyone. The RADAR logic provides any organisation, not just the ones in pursuit of sustainable excellence, with a structured approach to question their performance and enable them to make a robust assessment of their ‘degree of excellence’. In other words: it helps organisations to identify possible improvement opportunities.

Illustratie: Ivo van Leeuwen.

Backbone
On high level RADAR states that an organisation needs to determine the results it is aiming to achieve as part of its strategy. It needs to plan and develop an integrated set of sound approaches to deliver the required results both now and in the future and deploy the approaches in a systematic way to ensure their implementation. And last but not least, based on the analyses of the results achieved and on-going learning activities organisations can assess and refine their approaches and deployment.

Opportunity
Any type of organization can integrate these components into their business management system in order to develop a culture of excellence, to create consistency in their management style, to identify good practices, to boost innovation and to improve business results. The advantages are obvious. Not to use RADAR = a missed opportunity!

Sustainable soft drinks giant?

Sustainability is not just about the fate of the planet, but also about the well-being of the people on it. And then we should not just regard shareholders and employees, but also think about consumers. This raises an interesting question: can a producer of unhealthy products be called a sustainable company? Coca-Cola for example.

Obesity
One of the most powerful brands in the world is Coca-Cola. The range is huge and its consumption too. But this consumption isalso controversial: 100 ml Coca-Cola contains 42 kilo calories and 10.6 grams of sugar.
We live in a world where obesity is a growing problem. In this context, companies like Coca-Cola – where the business model is based on sugar – have come under intense scrutiny. Coca-Cola has responded with making smaller cans, providing better information and producing new, less unhealthy, product varieties (Light, Zero). "We are committed to bring people together to help fight obesity", said Stuart Kronauge, the General Manager for Coke's North America Sparkling Beverages division. But is that enough?

Quality management
Individual offices of Coca-Cola implement their own quality management systems. Like the Coca-Cola Ýçecek factory in Ankara, the fifth largest plant of Coca-Cola in Turkey. It was built in 1973 as the first large-scale production facility in Turkey. The factory has a good reputation in the field of quality management: it is continuously strives to improve. Over the yearsmany quality tools have been implemented, such as Lean 6 Sigma, Maintenance Excellence and Kobetsu Kaizen. The factory,equippedwith a number of ISO certificates, has received several prizes ánd won the Turkish National Quality Award. The implementation of the EFQM Excellence Model in the plant attributed to winning this National Quality Award.

More than efficiency & effectiveness
In 2012, the trophy cabinet of the Coca-Cola plant in Ankara filled up further with winning the EFQM prize for Taking Responsibility for a Sustainable Future.* However the fact that a plant of Coca-Cola would receive this particular prize of EFQM I find odd. The expectation of this fundamental concept is that an organization has a positive impact on the world around them, in economic, environmental and social terms. But facilitating obesity does not fit this description for me.

* In the 2010 version of the EFQM Excellence Model the Fundamental Concept (FC) was called Taking Responsibility for a Sustainable Future, but meanwhile, in the current model, the EFQM Model 2013, the FC is called Creating a Sustainable Future.

Are you a global role model for the New World of Work?

To decide how, when and where you work, that's the New World of Work in a nutshell. Technological innovations make flexible working possible, but the actual realization lags behind. A missed opportunity, so this year EFQM organizes its Good Practice Competition around this theme. Any organization with inspiring examples around the implementation of the New World of Work is welcome to join. The winner can count on international recognition.

Less cost, more productivity 
 The New World of Work is becoming more widely known and that is not without reason: when implemented correctly, it leads to lower costs. Employees get more responsibility and feel more involved, which ensures higher productivity. Moreover, employees are more satisfied because they are provided with the freedom to organize to their own work-life balance.

The New World of Work can lead to less
traffic jams (Mariorda, Wikimedia Commons).

Game and glide
One of the pioneers in the New World of Work is Google. Google wants its employees to feel comfortable and ensures there is room for relaxation, there is a TV room, you can play games and various departments are linked by means of a slide (!). The office is always open and not without reason: people are always there. You can devote 20% of your working time to your 'own' projects, but you need to come up with the ideas for that yourself.

Advantages and pitfalls
Awareness with regards to flexible working will take flight the coming years. In the United States alone the number of ‘virtual employees’ is estimated to rise to 63 million Americans (now: 34 million) by 2016. The benefits are obvious, but there are also pitfalls: communications could be disrupted, the social cohesion of staff could diminish and inspired home workers run the risk of getting a burnout. This is all the more reason to learn from each other and work together to find the answers.

Join!
The EFQM Good Practice Competition is designed to recognize leading organisations in the New World of Work and share what works through our network. It is open to any organisation – global or local, private or public sector, large or small. So if you have innovative initiatives that have delivered tangible benefits for your organisation and stakeholders, then join he EFQM Good Practice Competition and inspire over 400 international business leaders.

What can we learn from the most sustainable company in the world?

‘Sustainability’ is a buzzword. More and more companies are integrating it into their business plan. This seems to be a good development, but it does not say anything about whether the sustainability ambitions are actually realized. Words are not always translated into action. However, there are inspiring examples of companies that do well. Meet 'the most sustainable company in the world': Umicore!

Clean capitalism
At Corporate Knights Inc they must have thought: ‘to measure is to know’. Since 2005, each year they execute a comprehensive 'sustainability assessment'. Following this in-depth analysis it becomes clear which companies in the world can claim the title ‘clean capitalism’. During the World Economic Forum in Davos on 23 January last the latest sustainability champion was announced: the company Umicore with headquarters in Belgium, was honoured. Umicore was named most sustainable company in the world in the Global 100 Most Sustainable Corporations index.

The Umicar Imagine during the World Solar Challenge 2011 

in Australia (Wikimedia Commons).

Well-timed action
Umicore is a materials technology company, which produces highly efficient solar cells for instance. The biggest plant of Umicore in Hoboken, Belgium, is a leading member of EFQM community and uses the EFQM Excellence Model to manage the plant. Sustainability is an integrated part of their business model and not an artificial add-on. The rationale: early anticipation of the expected shortage in precious metals. Already some years ago, based on a comprehensive analysis of the commodity market the Umicore Vision 2015 was designed. At the core of this vision lies taking responsibility towards people, the planet and society at large. Some attention points are:
• Provide a safe and healthy working environment for employees;
• Implement ethical and safe production methods in developing countries;
• Monitor harmful side effects of production;
• Involve employees, neighbours, customers and authorities in business activities.

Excellent practice
The EFQM Excellence Model is deeply rooted at Umicore in Hoboken. By responding to future developments in time and using the EFQM Model as their management model, they have shown that users of the EFQM Model are indeed able to achieve sustainable excellence. As I believe that truly excellent organisations will make the world a better place, I am Umicore very grateful for this!

6 smart social media strategies

Last week the pitfalls of social media and this week the opportunities: how can social media add value to any possible organisation?

Opportunity 1: reach a large audience
Social media is easily accessible and an ideal way to quickly reach many people. The most effective way is cross-linking media like Facebook, LinkedIn, Twitter and Pinterest with the corporate website and other regular communication channels. Each tool has its own options and audience; together they form a powerful whole.

Opportunity 2: respond to current trends
News spreads quickly through social media. Twitter in particular is a rich source of information that spreads with great speed. Not only use Twitter to quickly detect trends, but also to anticipate to them in a timely manner.

Illustration: Ivo van Leeuwen.

Opportunity 3: build your relationships
For every organization to have a good relationship with the various stakeholder groups is crucial. This requires more than just transmitting information: you must also listen. Take advantage of all the opportunities that social media offer to interact with your audiences.

Opportunity 4: enlarge your persuasion powers
People are sensitive to what other people do. When many ‘like’ a product or service, its attraction increases. With the proper use of social media this will lead to 'social proof' and therefore enlarge your persuasion powers.

Opportunity 5: collect data
Social media are an inexhaustible source of information. Users continuously leave information behind. This information can easily be collected and analyzed. So take a look at these 'big data', because this brings many opportunities.

Opportunity 6: improve your image with corporate personalities 
A company is more than just its Chief Executive Officer. Employees also exert influence on their environment. Through tactically deploying social media you can use corporate personalities to improve your image. This means communicating from different levels and angles what will benefit the organisation’s overall appearance.

For those who think that social media is nothing more than hype: forget it. Certain forms of social media will undoubtedly lose influence (e.g. ‘Hyves’ in the Netherlands), but only to make room for others. Increasingly social media will penetrate deeper into our lives, both private and business. Companies that understand and embrace this, will crease their competitiveness, whether you like this or not...

6 pitfalls of social media

The role and importance of social media keeps increasing. Social media can be an effective means to increase brand awareness, reach your target audience and increase online visibility. Social media offers many opportunities, but there are also risks. Watch out for these 6 pitfalls.

Pitfall 1: social obligation
Many organizations start with social media because they feel it is 'something' they should be involved in. It is then regarded as a liability instead of a new opportunity, not having a clear purpose and the resulting effect often being disappointing.

Sofiaperesoa, Wikimedia Commons. 

Pitfall 2: underestimation
Social media is often seen as an easy, inexpensive tool for which little time is needed. Social media is indeed easy to use, but must be approached very seriously. Without a clear policy and / or a clear strategy the intended results will not be achieved.

Pitfall 3: short term thinking
It is often difficult to capture the Return On Investment (ROI) of social media: followers, fans, likes and retweets do not deliver direct conversion. However the use of social media can lead to significant positive effects, but this requires a long-term vision. The purpose of social media is to build a relationship with your target audience. This takes time, just like in real life.

Pitfall 4: no guidelines

Mentionablehonor, Wikimedia Commons.

Whether you are communicating through the company website or through Facebook: it always has an affect on the appearance of your organisation. To avoid miscommunication, it is wise to establish guidelines. You can lose your good reputation only once.

Pitfall 5: not listen
Social media is about interaction, to talk and to listen. The latter is sometimes forgotten. People want to be heard and really appreciate it when they can come into contact with a company in an easy way.

Pitfall 6: no added value

Finally, the most common pitfall: using social media as a commercial sales channel. Nobody wants to see nothing but advertising on it. However everybody is looking for valuable content that adds value. So communicate information that is interesting and relevant.

For those who are aware of the risks, social media can achieve excellent results. Curious how? Next week’s post contains six smart social media strategies for 2013.

Why the world needs social entrepreneurs

The world’s population is constantly facing challenges these days: around 20% of the people on this planet live in poverty and have, among other, a need of clean water, food, education and electricity. This has the attention of world leaders and big NGO’s, but sometimes de solution comes from an unlikely source. At times innovative individuals are more effective than governments or big organisations…

New role
People who make the world a better place have existed through time. Although positively engaged and enthusiastic, in general these social entrepreneurs were little effective. They were not taken seriously: what could individuals really achieve? But times have changed and social entrepreneurs have gained power and influence. How is that possible? Social entrepreneurs distinguish themselves in 3 ways:

1) Social entrepreneurs are pre-eminently innovative. They do not think in standard solutions but are creative, for instance when generating funds by ‘crowd funding’ (> 1 billion US dollars in 2013!).

2) Social entrepreneurs see society not as a problem, but as part of the solution. They are not looking for what the community is missing, but which knowledge and skills are there.

3) Social entrepreneurs make ‘social value’ their focal point in contrast to traditional companies where ‘making profit’ is the central theme. It is not about the short term results, but about the structural changes in the long run.  Or, as social entrepreneur Bill Drayton puts it: ‘Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.’

From underprivileged to promising

Jamie Olivers Restaurant Fifteen at 15 Westland Place, 

London (photo The Hammer, Wikimedia Commons).

A good example of social entrepreneurship is project Fifteen of Jamie Oliver, where underprivileged youths are provided with an opportunity to get training in hospitality. Since its inception in 2002 hundreds of young people have built a new life through ‘the art of good food’.
Another example is Amul a cooperation of farmers that has been active in India since 1946. The goal: help small farmers join forces and get fair prices for their products, independently from major cartels.

New reality

Amul Plant at Anand featuring the High capacity Milk Silos 

(Notnarayan, Wikimedia Commons).

Our dynamic world constantly requires creative ideas and innovative solutions. In this light the rise of social entrepreneurship is logical. It is not ‘the newest fashion’, but the new reality on our way to a sustainable future.

Royal support for sustainable reporting

We live in the era of crisis. Whether it concerns the banking sector, real estate or individual EU countries’ budgets: they are all vulnerable and a call for change is heard. One of the most called for instruments: more and better control. This is not without cause…. 

Transparency
The same thing annoys all investors, shareholders and supervisors: the lack of transparency of businesses. The profit and loss account alone only gives some insights into the operations of organisations. More transparency is required to be able to judge how a company is really doing.

Paul Druckman about integrated reporting: 

Where are we and is it really an important issue for today? 

Value creation
The classic way of reporting is over. The time of integrated reporting has come: a new form of reporting that concerns the value creation activities of organisations. The financial performance remains important of course, but next to that there is also room for non-financial performance: how have the financial results been achieved? And what effects did the business operations have on the quality of life for people and planet? In short: how sustainable is the business conducted?



More than hype
Integrated reporting is more than ‘the newest hype’ and is embraced by more and more multinationals. By example: in 2011 only 40% of the 50 largest Dutch companies were engaged in integrated reporting. In 2012 this percentage increased to 90! Even the British crown prince Charles favours the practice of integrated reporting …


GRI G4
In May 2013 the Global Reporting Initiative (GRI) launches the new G4 guidelines for sustainability reporting. Although these guidelines will focus more on the relevance of the aspects reported (materiality), they also take a head start with regards to the integrated reporting guidelines currently under development. Luckily the EFQM Model is an integrated model and that is why the EFQM community is awaiting the new reporting guidelines with confidence!