www.bradford.ac.uk/management

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