Frameworks for Quality
Performance Management
Performance Frameworks
• EFQM
• Benchmarking
• SCOR
2
TheBusiness Excellence Model
3
The European Foundation for Quality Management Framework
Leadership
Key
Performance
Results
People
Partnerships
and
Resources
Policy and
strategy
Society
results
Customer
results
People
results
Results
Enablers
Innovation and Learning
Processes
Business Excellence Model -
EFQM
LEADERSHIP (10%)
PEOPLE
MANAGEMENT (9%)
PLANNING (8%)
RESOURCES (9%)
PROCESSES (14%)
PEOPLE
SATISFACTION (9%)
CUSTOMER
SATISFACTION (20%)
COMMUNITY
SATISFACTION (6%)
UNIT RESULTS (15%)
R
E
S
U
L
T
S
E
N
A
B
L
E
R
S
Leadership :
how our business leaders behave in support
of excellence
Policy and Strategy :
how we produce plans and make them happen
People:
how we recruit, train, develop and involve people
Partnership & resources :
how we manage and use our resources
Processes:
processes are a clear and understood way in which
we do things in our business
Customer results:
are
we meeting our customers‟ needs? Are they
satisfied?
People results:
are we satisfied employees?
Society results:
are we meeting the needs of the community? Are
they satisfied?
Performance indicators:
are we meeting our targets?
Business Excellence Model -
EFQM
(2)
Benchmarking
• Came to prominence in the 1980s
• A way of measuring performance outside
the firm
• Widespread interest to understand an
organisation‟s performance relative to
others
• Gave companies insights into how much
they had to improve as well as ideas on
how they might improve
Types of Benchmarking
• Internal
Comparing operations or parts of operations in the same organisation
• External
Comparing the same operations or parts of operations in different
organisations
• Non-competitive
Comparing against organisations that do not compete in the same markets
• Competitive
Direct comparison between competitors in the same markets
• Performance
Comparing levels of achieved performance in different operations
• Practice
Comparing an operation‟s practices with those adopted elsewhere
7
Basic Rules for Successful
Benchmarking
• A thorough understanding of your own
processes
• An examination of what is already in the
public domain
• Do not discard pieces of information that
seem irrelevant
• Be sensitive about what you ask from
other companies
8
Supply Chain Operations
Reference Model
Developed and endorsed by the Supply-Chain Council as
the cross-industry standard diagnostic tool for supply-chain
management. SCOR enables users to address, improve
and communicate supply-chain management practices
within and between all interested parties: spanning from
supplier‟s supplier to customer‟s customer.
The metrics incorporate “calculations by which an
implementing organisation can measure how successful
they are in achieving their desired positioning within the
competitive market space”
9
SCOR
(2)
Cross-functional framework to support communication among
supply chain partners and to improve the effectiveness of supply
chain management and related supply chain improvement activities.
10
Capture the
“as-is” and
derive the
desired
“to-
be”
Quantify the
operational
performance of
similar
companies and
establish
internal targets
based on „best-
in-
class‟ results
Characterise the
management
practices and
software
solutions that
result in „best-in-
class‟
performance
Capture the “as-is” state of a process and
derive the desired
“to-be”
Quantify the operational performance of
similar companies and establish internal
targets based on „best-in-class‟ results
Characterise the management practices and
software solutions that result in „best-in-
class‟ performance
Process Reference Model
Best Practice
Analysis
Benchmarking
BPR
SCOR
(3)
Advantages:
• Structured
• Detailed
• Comprehensive
11
Disadvantages:
• Structured
• Detailed
• Comprehensive