Home > Free Essays > Business > Strategic Management > European Excellence Model and Balanced Scorecard
Cite this

European Excellence Model and Balanced Scorecard Essay


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.

This essay on European Excellence Model and Balanced Scorecard was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Essay sample written from scratch by
professional specifically for you?

Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar
Writer online avatar

301 certified writers online

GET WRITING HELP
Cite This paper

Select a referencing style:

Reference

IvyPanda. (2020, November 7). European Excellence Model and Balanced Scorecard. Retrieved from 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/.

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/.

References

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

References

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

More related papers