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!

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.