European Foundation for Quality Management

1
European Foundation for Quality Management
2
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

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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
• PL (kEur) 138
  - 212
• Cash Level (kEur) 1 051
  777 not including the major impacts of
  Cisco (625 kUSD) EC
  projects (280 kEur)

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EFQM INITIATIVES IN PROGRESS
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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 EFQMs global strategy
• EFQM Local Government Prize supported by CISCO
• EU Public Sector Advisors Club

6
EC-EFQM co-operation

• 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)

7
EFQM Globalization

• 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

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EFQM Local Government Prize supported by CISCO

• 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)

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EFQM GLOBALIZATION UNDER WAY

• 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

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ADVISORY COUNCIL
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ADVISORY COUNCIL

• Purpose
• A complement to the board structure
• Non-binding recommendations
• Objectives
• help EFQM capitalising on the best management
  thinking
• help EFQM expand its networking capabilities
• enhance the EFQM reputation (think tank)

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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 publicised
• Timetable 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

13
NEW GOVERNANCE STRUCTURE
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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

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EOQEFQM initiative to explore areas for closer
co-operation

• Stage 1 Report

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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

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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

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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 Improvement
• Values
• Balanced satisfaction of all stakeholders
• Value, promote and encourage diversity
• Partnership and teamwork, in a win-win approach
• Customer Focus
• Implementation
• 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

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The Options
Wider Management Practices
Focus on Quality
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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?

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Routes to achieve the Recommended End State
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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?

23
Implementation

• Set up a Steering Group
• Set up a supporting project team
• First Network activity as early as April / May
  2004
• Quick Wins agreed
• Communication
• Do you agree?

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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

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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.

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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)

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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

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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