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EFQM Policy Amp Strategy Tools
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EFQM ExcEllEncE OnE TOOlbOOk
www.efqm.org/excellenceone • 11
How it works
How to make the best use ofthe tool (tips and traps)Tips to help maximise the benefits ofthe tools and traps to avoid.
What could be done nextA description of the possibilities you have to maximise thebenefits of the tool, after completing all the steps. Second page
To demonstrate an application of the tool or information that aids further understanding of how the tool can be applied.
Why would you like to use this tool(deliverables).A description of what you can expect toachieve if you use this tool.A problem or a set of circumstances that youwish to understand further
How to use this tool (steps)A description of the key steps to follow if youwant to apply this tool rigorously.
When would you use this tool (context)The context in which you might want to use this tool.Thismight be an approach to excellence, a process or an event.
4
12 • www.efqm.org/excellenceone
TOOL #00
How to use this tool (steps)?
■ There are a number of publications, awareness sessions andtraining courses available that explain the EFQM ExcellenceModel.This would be an advisable first step to build expertise.
■ Use the Model as a checklist to compare what your organisa-tion does in comparison to the 5 Enabler criteria and whatyour organisation achieves against the 4 Results criteria.
1 Start with Enabler criteria 2: Policy and Strategy. Definethe goals, objectives and outcomes the organisation wishesto achieve.
2 Identify how the outcomes for Policy and Strategy trans-late into measures for the four results criteria (Criteria 6:Customer Results, 7: People Results, 8: Society Resultsand 9: Key Performance Results).
3 Identify key organisational activities for the enabler criteria3. People, 4. Partnerships and Resources and 5. Processes.Identify which results criteria they should have an impacton and translate into measures.
4 Identify the role of Leaders of the organisation (criterion1) in defining Policy and Strategy, creating and supportingthe key activities or approaches for criteria 3, 4 and 5 andresponding to the needs of key stakeholders reflected inthe results criteria.
5 Review with colleagues how your organisation comparesagainst all of the areas described by the Model to identifypotential strengths and Areas for Improvement.
EFQM Excellence Model
Why would you like to usethis tool (deliverables)?■ The EFQM Excellence Model(tm)
is based on a framework of nine
criteria. It can be used during a
review process to identify and
confirm which Result areas are
tracked and which Enablers are
supported by the organisation.
■ To gain agreement on which key
results and critical enabling activi-
ties are critical to the organisation.
When would you use this tool(context)?■ When you want to prioritise and
agree the result areas that are
important to the organisation.
■ When you want to understand the
relationship and impact between
Enablers (what you do) and Key
Result Areas (what you achieve).
How to make the best use ofthe tool (tips and traps)?■ The EFQM Model is a non-pre-
scriptive framework, itshould how-
ever be customised to reflect the
specific approaches and results rel-
evant to your organisation.
What could be done next?■ Undertake a Self-Assessment.
■ Score the organisation using
RADAR principles.
■ Identify areas for improvement.
5
www.efqm.org/excellenceone • 45
Policy and Strategy
Tool#: 01 Long Term planning checklist 38Tool#: 02 Fact finding mission 40Tool#: 03 SWOT Analysis 42Tool#: 04 Organisation scorecard 44Tool#: 05 Process scorecard 46Tool#: 06 Tree Diagram 48Tool#: 07 Catch-ball 50Tool#: 08 Deployment and implementation review checklist 52Tool#: 09 Measurement system checklist 54Tool#: 10 Metric checklist 56
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TOOL #01
How to use this tool (steps)?
1 Call your management team and targeted people to thereview meeting.
2 Go through each question in the checklist, discuss and fill-in the appropriate box with a tick if you can answer ‘Yes’to the question.
3 Use the checklist as a guide, asking open questions thatallow debate around the subjects.
4 Identify improvement opportunities.
Long term planning checklistPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To plan or review your strategy
formulation process.
■ To identify areas for improvement
in your planning process.
When would you use this tool(context)?■ When reviewing your strategy
formulation process.
■ Before starting a new planning
cycle.
How to make the best use ofthe tool (tips and traps)?■ Do your review with the manage-
ment team.
■ Make sure you stabilise the process
year after year.
■ Do not reinvent everything every
year.
■ Focus on what is critical for your
organisation.
What could be done next?■ Review your strategy formulation
process (long term planning) based
on the areas for improvement
identified.
38
Long term planning checklist
www.efqm.org/excellenceone • 47
TOOL #01
Long term planningRelevant? Done?
1 Have you checked that the revised strategy is consistent with the organisation’s
mission and vision?
2 Have you taken steps to understand the present and future needs and expectations
of stakeholders?
3 Have you considered internal performance?
4 Have you identified the core competencies of your organisation? Are your core
competencies delivering a competitive advantage?
5 Are the key processes of your organisation aligned with your structure?
6 Have you considered introducing new strategic products or developing additional
core competencies?
7 Have you developed a partnership plan?
8 Do you have a process for deploying organisational strategy throughout the main
functions and support areas?
9 Have you developed a training plan that builds individual competencies to support
the strategy?
10 Have you ensured your plan contains mid and long range targets and statements of
the means by which objectives will be achieved within the agreed timescales?
Are they balanced and consistent?
11 Have you ensured critical areas,such as quality, customer satisfaction, sales,
productivity,..., are covered by targets and statements of means?
12 Have you used appropriate tools to analyse data and information in order to inform
your decisions?
13 Have you checked your plan is manageable and achievable given current expertise
and resources, do you foresee the need for a profound adjustment of your organisation?
Example
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TOOL #02
How to use this tool (steps)?
1 Define what you are trying to validate/discover throughfact finding.
Answer the following questions: what facts do I need? Whydo I need them? What could happen if this data is notobtained?
2 Define how you are going to collect the facts.
Information exists under many different formats. Figure outif you need raw data or if what you are looking for alreadyexists.Ask people where could you find such information,how can you collect the data. Define the how and thewhere of your fact finding mission and the resources need-ed to complete the data collection process.
3 Define what you need to do with the findings.
When you have gathered the information you are lookingfor, you will need to present it.You need to define what isthe most appropriate format(s) you can use and how youare going to interpret the information.
Fact Finding MissionPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To focus on specific area of inves-
tigation.
■ To establish data and information
that needs to be gathered to sup-
port the investigation.
When would you use this tool(context)?■ Any time you need facts that will
assist you in the analysis of a
situation.
■ When you need to agree what
data needs to be collected.
How to make the best use ofthe tool (tips and traps)?■ Take facts from reliable sources.
■ Try to find a way to validate the
data (use 2 sources and compare).
■ Always take into consideration the
value of the information compared
to the cost of acquiring it.
What could be done next?■ Review the outcome of the fact
finding mission.
■ Interpret the facts.
40
Fact Finding Mission
www.efqm.org/excellenceone • 49
TOOL #02
Facts to be collected
Amount of revenue coming from each key account across the product portfolio.
Why should they be collected
To inform the implementation of the key account management system: Identify the key accounts, see how many
significant product they source from us.
Guidelines: how and where to collect the facts:
■ gather the data from the sales report of all existing products;
■ verify if we are talking about the same customer, if we are selling different products to different branches of
the same group but they are not consolidated;
■ check outcomes with invoicing information.
Resources needed:
■ 1 day to collect all data;
■ Need to have access to the sales data.
How to present the findings:
■ Build a Pareto diagram of key accounts;
■ For each key account identify the share of each
product they purchase.
Owner
Henry Mac Cormick
Deadline
10/12/2002
Example
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TOOL #03
How to use this tool (steps)?
1 Draw a table with four windows. Label each window:Strengths,Weaknesses, Opportunities and Threats – seefollowing.
2 Brainstorm Strengths,Weaknesses, Opportunities andThreats:■ for the Threats and Opportunities, it might be useful
to list all stakeholder and industry players to supportthe brainstorming;
■ for the Strengths and Weaknesses, it might be useful tolist the key processes and competencies of the organi-sation to support the brainstorming.
3 Clarify each idea put forward.
4 Run some fact finding missions when further understand-ing is required:■ for Strengths and Weaknesses, determine the impact
on performance and the importance of each idea tostrategic plans;
■ for Opportunities and Threats, assess the impact onthe organisation and the likelihood of occurrence.
5 Update the SWOT document after all fact finding missionshave been performed.
SWOT analysisPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To effect a thorough, structured
analysis of external and internal
factors (bearing on a decision).
■ To help leaders take the best
decisions for their organisation.
When would you use this tool(context)?■ At the beginning of the planning
cycle – to guide data collection.
■ To summarise outcomes of a data
collection exercise.
How to make the best use ofthis tool (tips and traps)?■ SWOT analyses are best done by
teams not individuals.
■ Focus attention on the key mat-
ters you are addressing.
■ Be selective- do not make a
SWOT analysis for every decision,
choose the most challenging.
What could be done next?■ Incorporate decisions based on
SWOT into your strategic plans.
42
SWOT analysis
www.efqm.org/excellenceone • 51
TOOL #03
Strengths:
■ a full range of new products has been
commercialised;
■ teams are quick to reach high capacity levels
with new equipment;
■ the new CRM system is in place;
■ workforce is competent and stable.
Weaknesses:
■ lack of competencies in the field of nano-
technology;
■ raw material supplier not reliable in terms of
delivery time;
■ too many defects after release of new prod-
ucts;
■ development team lack feedback from users;
■ competency plan not aligned with strategy.
Opportunities:
■ new biotechnology technology could
complement electronics technology;
■ a Japanese competitor is looking for a partner;
■ new needs are emerging in the weapons indus-
try;
■ some of our customers might merge.
Threats:
■ computer industry is slowing down;
■ some of our customers might merge;
■ slowdown in the economy;
■ new entrants emerging as technology becomes
more and more available.
Example
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TOOL #04
How to use this tool (steps)?
1 Define the key areas you need to measure in order to balance the performance results of the organisation:■ financial;■ customer centred;■ internal operations;■ development: learning, growth or innovation;■ ...
2 Define how you want to be seen in the four key areas ofthe scorecard.
3 Define quantitative and qualitative measures for each ofthe objectives described.
4 Select targets, stretching but nevertheless achievable, andrecord them.
5 Define the owner of the performance target to beachieved.
6 Define where and when performance should be reviewed.
7 Define the source of the performance data – where thedata is recorded and compiled.
8 List the initiatives that will bring the expected results.
Organisation scorecardPolicy & Strategy
Why would you like to use thistool (deliverables)?■ To integrate all the key aspects of
the measurement system to buildclear a line of sight.
■ To balance the performance results ofthe organisation.
When would you use this tool(context)?■ When you need to define the set of
measures to move the organisationforward.
■ When only a partial set of measuresis tracked, reported, or visible, and abroader picture of the organisation isrequired.
How to make the best use ofthe tool (tips and traps)?■ Select a few balanced measures for
each key area.■ Make sure you identify the critical few
metrics in each of the four key areas.■ Be rigorous enough to select quantifi-
able, balanced metrics in all key areas.■ Link all measures to specific results
areas.■ Avoid constantly changing the metrics
or increasing the number of criticalmeasures.
What could be done next?■ Deploy objectives and breakthroughs
activities on a process scorecard usingcatch ball process and tree diagrams.
■ Define how the scorecard will bepromoted and communicated.
■ Implement the collection of data.■ Prepare for review.
44
Organisation scorecard
www.efqm.org/excellenceone • 53
TOOL #04
Key area 1: Finance
Return on net assets
Increase in sale
Key area 2: Customer
Customer satisfaction Index
Market share
Impact on society Index
Key area 3: People
Employee satisfaction Index
Employee retention
Key area 4: Internal
Service level
(all processes)
Defect rate
A highly profitable organisation that attracts investors
Owner When
reviewed
Indicator Target Source
of data
Initiative
17% p.a.
+12% p.a.
45% Very
Satisfied
+3% p.a.
+85%
Satisfied
85% Satisfied
95%
<5%
charn p.a
200 ppm
JS
FG
LB
OG
PT
PO
JH
UY
KD
Quarterly
review
Monthly
review
Monthly
review
Quarterly
review
Yearly
review
Quarterly
review
Quarterly
review
Monthly
review
Monthly
review
Finance plan
Sales
reporting
CRM
database
Sales
reporting
Annual
survey
Quarterly
survey
HR
reporting
Process
scorecards
Process
scorecards
■ New product
development
■ Target costing
■ New Product
■ Extension of distribution
network
■ Call center
■ CRM
■ New Product
■ Extension of distribution
network
■ Education programme.
■ 5S + Health & Safety
■ Skills program
■ Work/life balance initiative
■ Skills program
■ Work/life balance initiative
■ Measurement system
■ Process review
■ Skills program
■ Work/life balance initiative
An organisation that stimulates customer loyalty
A caring organisation that attracts and retains excellent people
A process based organisation that creates leadership in product quality
Example
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TOOL #05
How to use this tool (steps)?
1 Define the measurement category you want to use e.g.quality, cost, .... -see below.
2 For each category, define the indicators you want to use.
3 For each indicator, define the target to be achieved.
4 Define the owner of the performance target to beachieved.
5 Define where and when performance should be reviewed.
6 Define the source of the performance data – where is thedata recorded and compiled.
Process scorecardPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To define process objectives.
■ To monitor process performance.
■ To review process performance.
When would you use this tool(context)?■ When defining objectives for a
process.
■ When monitoring and reviewing
the performance of the process.
How to make the best use ofthe tool (tips and traps)?■ Use the same categories for each
process.
■ Keep measurement simple, easy to
understand; keep data easy to
collect and the performance targets
possible to achieve.
What could be done next?■ Display the indicators visually.
■ Regularly review performance
against plan.
46
Process scorecard
www.efqm.org/excellenceone • 55
TOOL #05
Quality
First pass yield
Cost
Raw material consumption
against standard
Delivery
Adherence to schedule
Human Resources
Absenteeism
Indicator
97%
97%
100%
3%
JS
MB
MB
CF
Weekly meeting
Monthly meeting
Weekly meeting
Weekly meeting
Quality log
ERP data
ERP data
HR report
Process: manufacturing of RTS345 Process owner: MB
Target Owner When reviewed Data source
Example
47
56 • www.efqm.org/excellenceone
TOOL #06
How to use this tool (steps)?
1 Ask the question: ‘How to achieve.....?’ -your goal.
2 Brainstorm ideas on how to achieve the goal.
3 Write ideas as statements starting with a verb.
4 Clarify ideas, as necessary, so everyone understands them.Develop and write down new ideas as appropriate.
5 Structure ideas, using the form of a tree to separate andgroup them. Give titles to the branches – see following.
6 Review the completed tree diagram for logical flow andcompleteness.At each level ask the questions ‘have we for-gotten something?’, ‘are these actions really necessary?’ andfurther down, ‘will these actions actually lead to theexpected results?’. If you read the tree diagram left toright, it should answer the question ‘how accomplished?’.If you read from right to left, it should answer the question‘why to accomplish?’.
Tree diagramPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To encourage team members to
think creatively whilst keeping
overall goals in mind.
■ To reveal, graphically, the real com-
plexity involved in achieving goals.
■ To assist in managing complexity.
When would you use this tool(context)?■ When you want to present goals
graphically.
■ When you need to break down
broad goals into increasing levels
of detail.
■ When you need a structured
action plan.
How to make the best use ofthe tool (tips and traps)?■ Allow all participants in the exer-
cise to check for logical links and
completeness at each level and to
test that the tree diagram fits the
real world.
What could be done next?■ Select the most relevant ideas.
■ Document each major branch of
the tree (indicator, target, resources
needed, deadlines,..).
■ Management to review the out-
comes and assess in line with
business realities and the need for
resources.
48
Tree diagram
www.efqm.org/excellenceone • 57
TOOL #06
Increase workforcesuggestions
Supply cost data
Monitor approvedsuggestionsmonthly
Provide aprojectedimplementationdate at time ofapproval
Make evaluationa key managerresponsibility
Do localevaluation
Provide single-page documentation
Create quick implementation
Streamline evaluation
Provide information
Goal
Means
why?
How?Go online
Createa workable process
Create simpleinput system
Create capability
Example
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TOOL #07
How to use this tool (steps)?
Catch-ball is an approach to refine the definition of objectivesand actions in-line with strategic deployment within an organisa-tion. It is a series of discussions between managers and teamsduring which data, ideas and analyses are thrown, like a ball, backand forth, up and down, or horizontally across the organisation.The tool ensures a truly productive dialogue throughout theentire organisation so that all the outcomes are negotiated (andre-negotiated, if necessary), between the relevant parties, basedon facts. Catch-ball is commonly used to translate the top-levelgoals and breakthrough objectives into a cascade of interrelatedobjectives and actions, all driving towards the same vision.The catch-ball process stimulates the interest and commitmentof both managers and employees.
1 The team responsible for the strategy define and describethe breakthrough objectives.
2 Information is passed to the teams responsible for thebreakthroughs.
3 The teams refine the definition of the breakthroughs includ-ing contributing actions and objectives, deadlines andresources.This is based on data collection exercises and theuse of tools such as tree diagrams.
4 Information is passed back to the strategy team.
5 The strategy team review all information, make necessaryadjustments and decide on new priorities where needed.
6 Revised plans are passed again to the breakthrough teams.
7 The breakthrough teams start to deploy and implement therevised plans- unless they still have issues to clarify with thestrategy team (in which case the catch-ball process wouldcontinue through another cycle).
8 Another catch-ball exercise can happen between the break-through team and some deployment teams if necessary.
Catch-ballPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To align local objectives and
actions with the breakthrough
objectives and top-level goals of
the organisation.
■ To involve employees in the
definition of objectives.
When would you use this tool(context)?■ After managers have agreed to
implement key objectives but
before deciding on the precise
manner of implementation. (The
tool provides for discussion, review
and fine-tuning before final deci-
sions on the implementation plan.)
How to make the best use ofthe tool (tips and traps)?■ Limit the use of the catch-ball
approach to the few critical objec-
tives for which alignment to top
level goals is essential.
■ Make the process fact based.
■ Keep the catch-ball cycle time as
short as possible.
What could be done next?■ Move quickly to implementing the
final agreed plan to keep up the
momentum created during the
catch-ball process.
50
Catch-ball
www.efqm.org/excellenceone • 59
TOOL #07
Strategy team
Deployment Team
Breakthrough Team
1 5
7 8
1 8
2 4
3
6
refers to the steps
+
Help-Card
51
60 • www.efqm.org/excellenceone
TOOL #08
How to use this tool (steps)?
1 Call your management team and targeted people to thereview meeting.
2 Go through each question in the checklist, discuss andcomplete the appropriate box with a tick if you cananswer ‘yes’ to the question.
3 Use the checklist as a guide, asking open questions thatallow debate around the subjects.
4 Identify improvement opportunities.
Deployment and implementationreview checklist
Policy & Strategy
Why would you like to usethis tool (deliverables)?■ To review your deployment and
implementation process.
■ To identify improvement opportu-
nities within your deployment and
implementation process.
When would you use this tool(context)?■ Before starting a new planning
cycle.
How to make the best use ofthe tool (tips and traps)?■ Do your review with the manage-
ment team.
■ Make sure you stabilise the process
year after year.
■ Do not reinvent everything every
year.
■ Focus on what is critical for your
organisation.
What could be done next?■ Review your strategy formulation
process (long term planning) based
on the areas for improvement
identified here.
52
Deployment and implementation review checklist
www.efqm.org/excellenceone • 61
TOOL #08
Progress and plan review checklist Relevant? Done?
1 Have you identified all unfinished or unattained goals from the previous period?
2 Have you identified the problems, abnormalities and issues encountered during
the previous period?
3 Have you understood the reasons for the successes and failures experienced
during the previous period?
4 Have you focused on the few, well-documented, critical goals?
5 Have you applied the catch-ball approach effectively?
6 Have you involved the right people in the right deployment and implementation
activities?
7 Have you used quality, sorting or analysing tools to better understand the issues?
8 Have you implemented proven solutions?
9 Have you stabilised and fool-proofed the new process and new ways of working?
10 Have you regularly reviewed progress of each improvement activities?
11 Has top management been paying the required level of attention to the
deployment and implementation activities? Have they been involved in the
review of the activities?
12 Have you considered whether or not the current approach, in terms of content
and process, is still the best?
Checklist
53
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TOOL #09
How to use this tool (steps)?
1 Call your management team and targeted people to thereview meeting.
2 Go through each question in the checklist, discuss andcomplete the appropriate box with a tick if you cananswer ‘yes’ to the question.
3 Use the checklist as a guide, asking open questions thatallow debate around the subjects. Identify the root causesof the problems that still exists.
4 Identify improvement opportunities.
Measurement system checklistPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To review your measurement
system.
■ To identify areas for improvement
in your measurement process.
When would you use this tool(context)?■ When reviewing your measure-
ment process.
■ Before starting a new planning
cycle.
How to make the best use ofthe tool (tips and traps)?■ Do your review with the manage-
ment team.
■ Make sure you stabilise the
process year after year.
■ Do not reinvent everything every
year.
■ Focus on what is critical for your
organisation.
What could be done next?■ Review your measurement
process based on the areas for
improvement identified here.
54
Measurement system checklist
www.efqm.org/excellenceone • 63
TOOL #09
Does your measurement system Yes
1 Reflect on the vision and ambition of your organisation.
2 Provide a framework to set vital, ambitious but achievable targets.
3 Provide a framework to understand organisational performance and signal potential issues?
4 Balance long term and short term aspirations?
5 Cover the overall organisation, its key processes and partners.
6 Balance financial and non-financial perspectives?
7 Align metrics with in the business planning process?
8 Support alignment of all processes and activities with strategy?
9 Provide a process perspective that focuses on customers?
10 Provide cause and effect understanding. How performance measures drive results?
11 Drive behaviour and action?
Is your measurement system
8 Easy to use and understand?
9 Widely deployed?
Example
55
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TOOL #10
How to use this tool (steps)?
1 Build a metric review activity in your planning process orin your improvement methodology.
2 Identify potential metrics that fit your needs.
3 Use the checklist as a guide, asking open questions thatallow debate around the subjects.
4 Select the best possible metrics.
Metric checklistPolicy & Strategy
Why would you like to usethis tool (deliverables)?■ To review a metric.
■ To identify areas for improvement.
When would you use this tool(context)?■ When developing a set of metrics
as part of the planning process?
■ When developing a set of metrics
as part of an improvement activity.
How to make the best use ofthe tool (tips and traps)?■ Look for alternative metrics.
■ Focus on the most difficult issues.
What could be done next?■ Implement the metric
56
Metric checklist
www.efqm.org/excellenceone • 65
TOOL #10
Does the metric reflect Yes
1 Value to customer?
2 Value to the organisation?
3 Organisational strategy?
4 Organisation processes?
5 Offer timely feedback?
Is the metric
6 Aligned with other metrics used in the organisation or in other processes?
7 Part of a balanced set of indicators ?
8 Part of a balanced set where correlation amongst metrics is understood?
9 Clearly defined?
10 Objectively measurable?
11 Easy to collect?
12 Accurate?
13 Easy to understand?
14 Able to be influenced?
15 Supported by clear accountabilities for collection, display and interpretation?
Example
57