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The efqm model and its impact on quality and excellence

Anonim

For some time now, quality has gone hand in hand with excellence, in such a way that it is not conceived of one separate from the other, that is, it is assumed that the path to excellence passes through quality. In the framework of the fierce competition that characterizes the market in general, it is something that has become extremely necessary and essential, although not everything that is intended to reach the consumer is of quality nor are certain mechanisms to be used to attract interest. of consumers and find a way to retain them.

The economic development achieved in the last decades of the last century, together with the rise of international trade and what has been defined as globalization, brought the issue of quality to the fore. The Japanese have been considered as the promoters of this concept, which in a relatively short time transcended borders until reaching what was called zero defects and subsequently quality certification, something that has been becoming a requirement for companies that They want to expand and position themselves in certain markets, as if it were a modern marque certificate. However, quality should not be associated solely with the product or service that is offered, as this is a very narrow and biased way of conceiving it that in the end can lead to errors.Although it is true that the ultimate goal of quality is materialized in the product or service, currently there are many more elements associated with this concept, which has contributed to enrich it even more. Phillip B. Crosby, author of the theory of "zero defects", considered that quality is the result of the joint work of all the factors that intervene in production, both employees, management and suppliers. Currently, it is not enough that a good is presented with certain characteristics and attributes to obtain the necessary recognition that is endorsed by quality. From the internal organization, customer service, after-sales service, warranty, human resources, to marketing, they are part of the broad concept of quality.It is precisely in this context of integrity that quality can be associated with excellence.

Starting from this point, I will refer to quality not as a concept associated with the attributes and properties that a good must have intrinsically and extrinsically, but as mentioned before, the relationship it has with excellence, the role it plays in the Strategic process for the position that a company must seek in the harsh competition scenario that characterizes the sector in which it operates. It is a reality that both the phenomenon known as globalization or the internationalization of markets and the increased competition that accompanies it, has led to an interest in quality in companies from the point of view of the certification process through of ISO standards. The quality certification is a good letter of introduction when setting out to conquer new markets,especially in the most demanding.

It seems interesting then to know what is meant by excellence. According to the Dictionary of the Royal Academy of the Spanish Language, excellence is defined as " superior quality or goodness that makes something worthy of singular appreciation and esteem ". If we analyze this definition, we will find that it points to a stage in the development level, which at the same time leads to a value as important as recognition, something that is not achieved expeditiously, because it requires effort, work and above all, constancy. In short, from a business point of view, excellence translates into the best possible way of doing things.

Although excellence is important, necessary and perhaps even essential, achieving it depends solely on companies, their conscious action and know-how. It becomes definitive in a kind of business philosophy in which the organization surpasses itself as a mere entity destined to offer a good or service in order to generate income. No one directly demands or forces them, therefore they are the ones who have the responsibility to define if they are interested in working towards achieving it, because obviously it implies a certain effort, not only in terms of resources, but also in improvement and work, instead of mentality, which even happens to change concepts. Of course, the effort can have its reward, which will obviously translate into quantitative aspects, for example,reducing costs, increasing sales or market share; and also qualitative, such as customer recognition and loyalty. Currently, brand loyalty is one of the most important attributes that companies have, precisely because over the years it has been assumed that the products of a certain brand (Sony, Nestlé, Coca Cola, Nokia, Apple, Toyota, Wolksvagen, Rolex, Mercedes Benz, etc.) some of them are synonymous not only with excellence, but also with good quality, offering greater satisfaction to consumers.Currently, brand loyalty is one of the most important attributes that companies have, precisely because over the years it has been assumed that the products of a certain brand (Sony, Nestlé, Coca Cola, Nokia, Apple, Toyota, Wolksvagen, Rolex, Mercedes Benz, etc.) some of them are synonymous not only with excellence, but also with good quality, offering greater satisfaction to consumers.Currently, brand loyalty is one of the most important attributes that companies have, precisely because over the years it has been assumed that the products of a certain brand (Sony, Nestlé, Coca Cola, Nokia, Apple, Toyota, Wolksvagen, Rolex, Mercedes Benz, etc.) some of them are synonymous not only with excellence, but also with good quality, offering greater satisfaction to consumers.

In practice, as has been emphasized before, the imperative of competition increasingly forces companies to bet on quality and excellence, regardless of the sector of activity in which they operate, their size or the volume of profits. they get. In principle, no company is disabled or excluded from a process that is linked to its own existence and that in the end will report benefits. Once the need to achieve excellence is assumed, the next step is to propose or define the action plan that must be followed, depending on the internal and external situation that is present in each case, because achieving it is part of overcoming the problems (Weaknesses), enhancing Strengths and reducing, whenever possible, the impact of Threats in the environment,although this can also offer possibilities (Opportunities) that knowing how to identify them properly will be in favor of the company.

Precisely the EFQM Model or European Model of Business Excellence, serves to analyze and evaluate in a comprehensive way, the situation and the operation that a certain organization presents at a given moment in the face of excellence. EFQM is the acronym in English for the European Foundation for Quality Management, a non-governmental organization that was created at the end of the eighties of the last century with the express objective of promoting work in pursuit of quality in the European framework. The foundation annually grants awards that recognize the work carried out by companies, for which it is based on the use of the model that is recognized by the organization's initials.

The Model establishes a set of criteria that serve as a guide to measure how the company is doing and from here to establish the measures -or what is technically known as Improvement Plans- that will be necessary to implement based on the objectives and the defined strategy. The Model considers aspects of a qualitative and quantitative nature, namely:

• Leadership: nowadays a good organization is not conceived that does not have leadership capacity, not only from the individual point of view, that is, there is a person who has the authority and sufficient prestige to be recognized by the party of the collective that he directs as a leader, and that these qualities allow him to effectively direct the organization, but even that there is a collective leadership, which is much more comprehensive and ambitious. A group or an organization has the possibility of being leaders when they are able to become a benchmark, not only for other companies, but for all the forces and factors that interact in the economic scenario (suppliers, customers, the media).When the impact that Apple has been able to impose on the business scenario is analyzed in recent years, it can be observed that regardless of the strong competition that characterizes the sector, there is wide recognition of its work of innovation, change and social impact. economic. Apple has set a standard that has forced everyone to observe it and many, even to admire it.

• Personnel: an important part in the success of an organization is played by the personnel that integrates it, not only because of their level of knowledge, experience and qualification, but also because of their motivation, dedication, identification and dedication. A cohesive group committed to the organization is a sure guarantee of success. Studying the composition of the human collective, its interests, problems and aspirations, is an essential part of the design of a good strategy. Staff have to be well trained and know exactly what to do.

• Policy and Strategy: it is assumed that all companies, regardless of their size, potential and organization, have a certain strategy, more or less elaborated and structured, however, for those that bet on quality and excellence, the Strategic Plan and the policy to be followed is essential.

• Resources: the available (or necessary) resources are those that determine that the proposed strategic objectives can be achieved. Carrying out ambitious plans without being supported by the reality of the availability of resources is a utopia or in the worst case a real waste of time. Of course, the rational and efficient use of the same, the exploitation of the reserves, the use of alternative resources, is part of this important aspect. In this the "Zero defect" theory prevails again, since the reduction of failures contributes to the more efficient use of resources, eliminating reprocessing costs or the total loss of useless products.

• Processes: every organization supports its operation in processes, which can be of a productive (technological), administrative, logistical, commercial, training, control nature, and so on. The correct definition of the processes contributes to a better internal organization and results in greater efficiency.

• Results: in personnel, clients, investors and society. Ultimately, every company works to offer a result that affects several directions. Undoubtedly the most important thing (in for-profit companies) is the sale, the income and the profit margins that are achieved, but this is not everything. This is perhaps the most obvious or generalizing result, but in the middle or around are other aspects to consider.

a) The level of customer satisfaction with the product or service, both in use and in the guarantees received when acquiring it. Customers can be fooled for a time, but not all the time. The satisfied customer will remain loyal, but that will depend on his feeling that he is important to the company that offers the product or service.

b) The degree of satisfaction of workers with the organization is measured in qualitative aspects such as the work environment, job protection and safety, the relationship with the bosses, the level of existing communication, among others; as well as by quantitative aspects such as the remuneration and the benefits he receives, because ultimately he has personal interests that he needs and wants to satisfy. The worker will be interested in the company improving and prospering to the same extent that this prosperity has a positive impact on him.

c) Investors and shareholders are interested in tangible results in monetary terms, because they need their expectations to be met from the point of view of profitability.

d) Society as a whole should feel benefited and never harmed by the activity of the company. Companies that pollute, that produce noise, that do not integrate with the community, that hinder the proper functioning of society, end up being harmful. Fortunately, the trend is that more and more rules and regulations are established aimed at preventing companies from affecting the environment indiscriminately and with impunity.

e) Suppliers are an important part of the business system. Without them it would be impossible for them to carry out their activity. Although the suppliers have obligations with the company, it in turn has it with the suppliers, especially in terms of compliance with payment obligations and the necessary communication that must exist. Suppliers are also companies that have their interests, but this should not lead to the mistake of considering them as enemies.

• Performance: performance goes beyond result. Performance expresses a quality, it measures how resources have been used. It is synonymous with efficiency. It is generally based on the use of indicators, many of them known (Productivity, Salary or Material Expenditure by Monetary Unit, Profit per Share, Average Grade per Student, Medical Expenditure per patient, etc.) and others that are elaborated in based on the content of the established tasks.

Representation of the EFQM Model. Taken from Quality Implementation Consulting.

Obviously, the result is what guarantees the company stability and permanence, but for these to materialize, first it is necessary to go through a set of phases in which different aspects, factors and elements intervene, which are what allow the concretion of the activity in the form of results, which in this case does not refer only to how much has been entered or earned, but to the impact that the company's action has on workers, on clients (for whom it works), on those who have invested their resources in it and in society.

The EFQM Model is a way of betting on quality and serves in principle for the organizations that choose this to review and dictate their internal and external situation. From the result that is obtained, it is possible to know not only how it is, but it will be possible to establish the lines of action to be developed based on the objectives to be achieved, delimited in terms of time.

To adopt the EFQM Model, four fundamental premises must be taken into account:

1. Its systemic nature, from the fact that each of the aspects that make it up are interrelated with each other, based on one or more objectives. Ultimately, the company is a system, made up of a set of links or elements that with specific functions and tasks are all aimed at guaranteeing the production or provision of a service. When for some reason the correct systemic operation is not achieved, the result cannot be good, even when the expected sales objectives are achieved. Somehow imbalances will occur that affect efficiency.

2. Its permanent nature, because it is not a job for a moment, it is not to solve a specific problem, it must be adopted as a form of work. The continuous scientific and technical advances and innovations impose a dynamic of constant change, which becomes more pronounced in some sectors and less in others, but which in one way or another is still present.

3. Its dialectical nature, determined by the imprint of the environment and the dynamics of the organization itself, which causes constant changes to take place that must be taken into account. What works for today may lose its effectiveness tomorrow. Examples are solid companies, with an enviable track record and well-known brands that have been practically on the brink of bankruptcy. It occurs to me to mention the giant Kodak as an obvious example of this, which has seen other producers surpass their undeniable experience and know-how.

4. Like any process, it requires systematic control, which is the one who guarantees to be able to make the necessary corrections in light of the events. The verification of the predicted with respect to the real thing, is the base of the effectiveness of the Model, otherwise its usefulness will be practically null.

Control is the management function that certifies how much and to what extent what has been done corresponds to what has been planned. As it is supported by the verification, it is essential to have a System of Indicators through which to execute the measurements at all times. Sometimes it becomes complicated, mainly because it is not designed correctly, but it cannot be ignored, because it is the only way to avoid wasting time, resources and deviation from goals. It is a guarantee of feedback to dictate how things are going and if it is necessary to change.

It would not be bad for all companies to consider the possibility of adopting this or another of the models that exist (for example, the Malcom Baldrige Model) linked to excellence, not for aspiring to such a prestigious award as that awarded by specialized organizations, but because ultimately it helps them to know how they are and what it will be necessary to do based on the existing situation and the aspirations they have. It means the same as having a more elaborate strategy, with a detailed knowledge of the position they have at a given moment, with a study of the possibilities they have and the difficulties they face.

Finally, it must be emphasized that the EFQM Model (which is not the only one that exists for the issue of excellence) is associated with the Strategic Plan and the Improvement Plan, because it serves to define what should be done based on the proposed objectives. It depends on the proper conjugation between them that the company can advance in the long path of excellence.

The efqm model and its impact on quality and excellence