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!