European Excellence Model and Balanced Scorecard Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Introduction

Business excellence is desired by all organizations that want to gain a competitive edge on the market. The presented article is focused on two models, the EFQM Excellence Model and the Balanced Scorecard method. This paper will examine the information presented in the article and outline the similarities and differences between the two frameworks

Discussion

European Foundation for Quality Management excellence model was created in 1988 and has since become one of the most commonly used models of quality management (Suárez, Calvo-Mora, Roldán, & Periáñez-Cristóbal, 2017). The model is based on nine criteria that relate to management practices that are designed to facilitate performance excellence in the organization. The nine criteria are separated into two categories. The first is called “enablers, ” and it contains leadership, people management, policy, and strategy of the company, resources, and processes. The second category is called “results” and includes people’s satisfaction, customer satisfaction, impact on society, and business results (Schoten, Blok, Spreeuwenberg, Groenewegen, & Wagner, 2016).

The Balanced Scoreboard approach was developed in the early 1990s by the Nolan Norton Institute. This framework is designed to allow for better communication and implementation of the organizational strategy (Hoque, 2014). It contains financial and non-financial measures that help implement the key elements of the company’s vision. Non-financial aspects contain three additional categories to focus on the future performance of the company, while financial measurements are based on past performance.

Non-financial categories include customer satisfaction, internal business process, and learning and growth. This framework contains four perspectives: financial, customer, internal, and growth. However, the creators of the system incentivize each company to develop a unique scorecard of measurements that are most relevant to its stakeholders (Cooper, Ezzamel, & Qu, 2017; Hansen & Schaltegger, 2016). Performance is linked to the strategy of the business unit, and it includes four processes that create a strategic framework for action. They are: “clarify and translate vision and strategy,” “communicate and link strategic objectives and measures,” “plan, set targets and align strategic initiatives,” and “enhance strategic feedback and learning” (Wongrassamee, Simmons, & Gardiner, 2003, p. 17).

To compare the models, the article presents a series of questions and tries to answer them by using them. Neither of the models could fully answer the questions, but some similarities and differences could be seen. Both models were found to be based on specific objectives with the EFQM model focusing on the nine criteria and the scoreboard relying on four perspectives. EFQM model does not present a strategy for the implementation of the framework, while the scoreboard does. I most aspects the frameworks are similar, but the main difference lies in the way that the Balanced Scoreboard framework is based on the strategy of the company and is shown to be more flexible than others.

Conclusion

Business excellence frameworks play a significant role in business. The article examined the EFQM excellence model and the Balanced Scoreboard framework. They were found to be similar, except flexibility that the later framework has.

References

Cooper, D. J., Ezzamel, M., & Qu, S. Q. (2017). . Contemporary Accounting Research, 34(2), 991–1025. Web.

Hansen, E. G., & Schaltegger, S. (2016). . Journal of Business Ethics, 133(2), 193–221. Web.

Hoque, Z. (2014). . The British Accounting Review, 46(1), 33–59. Web.

Schoten, S., Blok, C., Spreeuwenberg, P., Groenewegen, P., & Wagner, C. (2016). . International Journal of Operations & Production Management, 36(8), 901–922. Web.

Suárez, E., Calvo-Mora, A., Roldán, J. L., & Periáñez-Cristóbal, R. (2017). . European Research on Management and Business Economics, 23(3), 147–156. Web.

Wongrassamee, S., Simmons, J. E. L., & Gardiner, P. D. (2003). . Measuring Business Excellence, 7(1), 14–29. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, November 7). European Excellence Model and Balanced Scorecard. https://ivypanda.com/essays/european-excellence-model-and-balanced-scorecard/

Work Cited

"European Excellence Model and Balanced Scorecard." IvyPanda, 7 Nov. 2020, ivypanda.com/essays/european-excellence-model-and-balanced-scorecard/.

References

IvyPanda. (2020) 'European Excellence Model and Balanced Scorecard'. 7 November.

References

IvyPanda. 2020. "European Excellence Model and Balanced Scorecard." November 7, 2020. https://ivypanda.com/essays/european-excellence-model-and-balanced-scorecard/.

1. IvyPanda. "European Excellence Model and Balanced Scorecard." November 7, 2020. https://ivypanda.com/essays/european-excellence-model-and-balanced-scorecard/.


Bibliography


IvyPanda. "European Excellence Model and Balanced Scorecard." November 7, 2020. https://ivypanda.com/essays/european-excellence-model-and-balanced-scorecard/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1