European Foundation for Quality Management. Version: 1Author: de Dommartin EFQMDate:08 10 03 2003 RESULTS as per 31/08/03 as per 31/08/02 Levels of Excellence.

European Foundation for Quality

Management

Version: 1 Author: de Dommartin EFQM Date:08 10 03

2003 RESULTS

• as per 31/08/03 as per 31/08/02

Levels of Excellence

• No R4E applications 24 26

• No C2E applications 109 46

Excellence One acceptance

• No Users 2860 2331

Forum Audience

• No paying delegates 920 741


2003 RESULTS Membership

• as per 31/08/03 as per 31/08/02

• Revenue (kEur) +1 708 +1 659

• No New members 63 49

• No A members 12 3

Financial Results

• P&L (kEur) +138 - 212

• Cash Level (kEur) +1 051 +777 not including the major impacts of Cisco (625 kUSD) & EC projects (280 kEur)

EFQM INITIATIVES IN PROGRESS


EFQM INITIATIVES IN PROGRESS

Funding for EC projects:• NETSIO 288k• EC ICT Quality Policy Assessment 54k • Corporate Social Responsibility 54k

EFQM Globalization:• MOU and Parnerships formed• Arab ‘sister’ organisation Dubai• Developing EFQM’s global strategy

EFQM Local Government Prize supported by CISCO

EU Public Sector Advisors Club


Start an EC project (NETSIO) in co-operation with ESI and NPOs (Eur 280 000)

Develop the EFQM framework for CSR endorsed by EC (from Jan 2003 to Feb 2004)

Organise an EC-EFQM conference on CSR in Brussels on October 31st (Eur 54 000)

Assess ICT-EC Quality Policy with involvement of Directorate Generals (Eur 51 000)

Investigate an EC project about SD 21000 & EFQM framework for CSR (Eur 450 000) with AFNOR & NPOs (to be submitted in Mar 2004)

EC-EFQM co-operation


MOU to be signed with United Nations Global Compact on October 21st

EFQM participation to the Leader Forum of Global Compact on June 24th 2003 in New York (700 CEOs invited by Kofi Anam)

Partnerships established with: • World Business Council for Sustainable

Development • Social Accountability International

(workers’ rights in developing countries)• CSR Europe

EFQM Globalization


Promoting Europe-wide a Local Government Recognition Scheme based on the LoE scheme with future integration at European level & national level.

Promotion through CISCO country managers and NPOs in UK, France, Germany, Austria, Benelux, Italy, Finland, Poland, Spain, Greece, Ukraine, Denmark, UAE and Denmark

Resources raised by Cisco the founder sponsor and other sponsors- CISCO Eco Systems Partners- (USD 625 000/Y)

EFQM Local Government Prize

supported by CISCO


Supporting the creation of an EFQM sister Foundation EFQM by Arab Management Council (MENA) with a hub in Dubai

Gathering key global players in the WEC (World-Excellence Council) next to GEM to steer EFQM globalization• Confederation of Indian Industry • Fundibeq in Latin-America• Russia• Arab Foundation

EFQM GLOBALIZATION UNDER WAY

ADVISORY COUNCIL


ADVISORY COUNCILPurpose

• A complement to the board structure

• Non-binding recommendationsObjectives

• help EFQM capitalising on the best management thinking

• help EFQM expand its networking capabilities

• enhance the EFQM reputation (think tank)


Advisory Council Process

Meeting frequency• once a year• separately from main EFQM events• prepared by one-to-one contacts &

ViCOPs• preceded & followed by reports

largely publicisedTimetable and Budget

• Eur 50 000 assuming that travel & hotel expenses are paid by each member

• a 1-day event end of June/ beginning of July 2004

NEW GOVERNANCE STRUCTURE


Board Structure Size of the Board:

• close to 12 • but possibly ranging from 5 to 20.

President: of EFQM• Chair of the board • elected by the governance board

Membership of the board• 4 years with a potential for a 2-year re-

election• nominated by EFQM members on the proposal

of the Governance Board• CEO a member of the board.

Permanent committees• assist the Board in the related business areas• Chair,appointed by the board, appoints

members & working groups as appropriate.• Chair may take on management responsibilities

EOQ~EFQM initiative to explore areas for closer co-

operation

Stage 1 Report


Background to the Study

Concern about the future of Excellence and Quality

The need for EOQ and EFQM to respond – a Vision for a combined new Movement

The EFQM Review of Leadership and Governance

Feedback from stakeholders confirms this…..

Now is the time for EOQ and EFQM to work together


The Case for Change Use of Management Practices on the increase

globally Declining interest in TQM, growing interest in

‘compass-setting’ tools Need management practices focused on issues

faced in the Boardroom A range of management practices is key to

future success, not a narrow focus on excellence and quality

The challenge is to harness the energies of all providers of management practices to focus on the Boardroom agenda

Organisational change will stimulate the interest of the European Union in a new Movement

Organisational change is only the start – there is an urgent need for new ideas and action


Elements of a common Vision for the future of a new Movement

Driving Forces Allowing every organisation in Europe to excel, for the benefit of all

individuals and society Promoting, disseminating, facilitating and enabling best practice and

innovative management methods Improving the strength of the European economy and quality of life Lead to Sustainable Performance ImprovementValues Balanced satisfaction of all stakeholders Value, promote and encourage diversity Partnership and teamwork, in a win-win approach Customer FocusImplementation begin by a common understanding via a common decision process have shared schedule of events and communication be ready for ‘pioneering’: not waiting for unanimity enhances speed and

variety (but be cautious, pioneering generates risks) Aspire subsequently to national as well as European integration

Work together for performance improvement of all organisations in Europe by drawing on the full range of management practices


The Options

Base Case Network

Merger Platform

EOQ EFQM ManagementPractices

Forun

NPOs

EFQM

EOQ

FMOs

?

?

?

Name ofmerged

entity to bedefined

Platform

QualityOrganisations,

?

?

Wider Management PracticesFocus on Q

uality


Platform is the recommended End State

The Platform is considered to be the ideal end state:

It is closest to the Vision It brings together a more diverse range of players, all

contributing to organisational performance improvement It broadens the offer to include approaches to quality,

organisational excellence and other management practices

However, it is considered to be too complex a solution to achieve in one step• Time scales and resource commitments are likely to create the

perception of slow progress in creating a new movement• Additionally, the energy involved in making a success of this

option is likely to limit or reduce service delivery in 2004• It will be difficult to engage other organisations in such a

closely merged entity without an interim stage

Do you agree?


Routes to achieve the Recommended End State

Where we arenow

BaseCase

Network

Merger

PLATFORM


The Network is the Recommended Route

Network Option: Closer to the concept of a Movement because it moves quickly

beyond Quality into more general Management Practices It exploits more than the relationship between EFQM and EOQ

and includes significant “other” partners The dynamic of co-operation can be tested in real time

against real issues without any dangers to member and stakeholder interests.

Potential for Network members to enhance revenue streams based on sales to new customers

No risk of competition between Network members and the Network itself

Participants are equals and so enhances migration to the Platform

But the level of commitment demonstrated is less than on the Merger route.

Do you agree?


Implementation

Set up a Steering GroupSet up a supporting project

teamFirst Network activity as early

as April / May 2004Quick Wins agreedCommunication

Do you agree?


Recommendations (1)The EFQM Governing Committee and the EOQ

Executive are invited to: Agree the elements of a common Vision for

the future (Annex 2) Agree that the Base Case is not an option Agree that organisation change is a pre-

requisite to addressing the strategic issues facing the excellence and Movement but recognise that this will not in itself solve the problem.

Agree the Platform as the ideal vehicle through which to achieve the Vision.

Agree to the Network migration path to the Platform


Recommendations (2)

Agree to the following ‘Quick Wins’, the implementation of which will be overseen by the

Steering Group: Agree to EFQM and EOQ approaching

(formally), candidates such as those listed in Annex 3, as potential members of the Network based on clearly defined selection criteria.

Agree that EFQM and EOQ launch the first Network meeting to coincide with changes to the EFQM Governance structure, e.g. the first Advisory Council meeting of EFQM scheduled for the first half of 2004.

Agree to the joint EFQM/EOQ promotion of significant activities of EOQ, e.g. "The Change Leaders" initiative, to be held in February 2004.


Recommendations (3)

Agree to communicate as follows: A jointly agreed transcript simultaneously

transmitted to EFQM and EOQ stakeholders after the 8th of October 2003.

Further communication events to be programmed including the Stage 2 plan, presentations and discussions to capture input and interest and respond to questions.

Agree the urgent need to make progress and to establish immediately a Steering Group with a supporting project team to start work on the detailed design and development of the Network, at a cost of 100k Euro, shared equally between EFQM and EOQ. (Annex 4)


Feedback from EOQ (1)

Platform Agreed• It must be a strong but open organisation• Governance must reflect this• It requires the commitment of both Presidents, both

CEOs and all Committees Network agreed but only as a very fast transition

route to the Platform Migration from the Network to the Platform by

October 2004 rather than in 2005 Quick wins agreed

• Approach potential partners for the Network / Platform• Jointly promote significant activities, e.g. EOQ,s Change

Leaders initiative (Malaga)• Align first Network meeting with related changes e.g.

Advisory Council


Feedback from EOQ (2)

Steering Group and membership agreed but it must be an empowered body (it supercedes the governance bodies of both EFQM and EOQ)

EOQ commit to contribute finance and resource in equal proportions to EFQM in order to deliver the recommendations. This will be subject to appropriate controls applied by the Steering Group on a case by case basis as needed.

Accountability rests initially with Alain and Bertrand to deliver the recommendations

The new EFQM CEO would be the CEO for the Platform and be recruited with this in mind

The new CEO on appointment will be accountable for delivering the Platform

European Foundation for Quality Management. Version: 1Author: de Dommartin EFQMDate:08 10 03 2003 RESULTS as per 31/08/03 as per 31/08/02 Levels of Excellence.

Documents

efqm sister foundation

efqm initiatives

efqm framework

ecefqm cooperation slide

efqm capitalising

efqm participation

efqm reputation

ecefqm conference