Summary of the Article
Organisations are faced by different challenges in their operations hence identification of ways through which the challenges could be solved becomes important in order to improve performance. This is achieved by looking for tools that assist organisations in strategic management. EFQM, which is based on principles of total quality management, is one of the tools used by organisations to improve their performance. EFQM came into existence in 1992 for purposes of determining which organisations qualified for the European Quality Award.
The approach is currently used by many organisations to assess their performance. EFQM approach is used by organisations to identify their functional areas that require improvement. It gives them an opportunity to use different approaches in order to attain long-term excellence in their activities. The model works on the premise that organisations should accept and consistently use the eight basic rules of excellence. The principles of total quality management help organisations succeed by strengthening their market position.
Main Ideas of the Article
The first basic idea of EFQM encompasses eight basic rules of excellence and nine criteria. The approach lays emphasis on results since it believes that achievement of results that satisfy all the stakeholders of an organisation is very important. Workers, suppliers and customers of an organisation should have confidence that the organisation they work for is capable of performing well in a competitive environment. The second basic idea of excellence that EFQM supports is value for the customers.
It is true that for an organisation to succeed, the customers should be treated well and be accorded the respect and honour they deserve. The third idea of EFQM approach is good leadership and focus which ensures that the purpose of an organisation is realised. This ensures that an organisation does not lose track and that it works towards achieving its objectives.
Management by process and facts is also an important idea that EFQM approach supports. This implies that the different departments that make up an organisation should not operate in isolation. There should be close interdependence among different systems within organisations.
The contribution of employees is also an important factor that contributes towards the success of an organisation hence all employees should be fully involved in organisational operations. Finally, organisations should ensure that there is continuous learning, innovation and improvement to create sustainability. This is important because it gives an organisation a chance to constantly implement some of the most important changes.
The other important set of ideas that EFQM supports is comprised of nine steps, five of which are enablers and four results. The enablers focus on what an organisation actually does while the results focus on the achievements of an organisation. Enablers make it possible for results to be achieved. On the other hand, improvement on the enablers is based on feedback from results. I am in agreement with the ideas that EFQM supports because all of them enhance success in organisations.
Practical Implications of the Article
The concepts discussed in the article can be of great importance to organisations in UAE since it is one of the most viable regions in the world to conduct business. As a result, organisations that operate in the region should use different approaches to manage their activities. The first idea that can be of benefit to organisations in UAE is analysis of organisational strengths and weaknesses.
Most organisations fail because they do not know their areas of strengths and weaknesses. Once organisations identify their strong areas, this can be used as a strategy to improve performance. Likewise, when an organisation identifies its weaknesses, it becomes possible to look for ways of addressing them. The other way through which organisations in UAE can benefit from the ideas of EFQM is application of different approaches to run their activities. Things are not done in a single way hence organisations should learn how to apply different methods in order to succeed. This would be of benefit to organisations in UAE.
Lessons Learnt from the Article
I have learnt that organisations should make use of proven mechanisms or models that have been used in other organisations to improve performance. I have also learnt that self-assessment is very important for organisations because it gives them an opportunity to identify their strengths and weaknesses. This is important because it enables them to take advantage of their strong areas and take corrective measures in areas where there are weaknesses. The article has also taught me the importance of valuing customers because they constitute an important part of an organisation.
Through the article, I have realised that EFQM is a crucial tool which is used to assess and measure performance in organisations. For instance, it gives attention to impacts through the criteria of results. In addition, it links the operations of an organisation and the results it achieves. Such mechanisms are important to organisations because they ensure that success is achieved and continuous improvement is made a priority.