A Guide to Implementing the EFQM Model in 2025

Excellence in business isn't a static goal it's an ongoing journey that requires a continuous understanding of where your organization stands and whether you are optimizing your operations to adapt to the dynamic environment around you. Over the past 30 years, the EFQM Excellence Model has evolved significantly.

Originally designed as a quality management tool, it has now become an essential framework for managing change and disruption relevant to the challenges businesses face today.

The EFQM has been embraced by a global community of over 50,000 organizations, including industry leaders like BMW, Bosch, and Siemens. As a non-profit entity, it has transformed from a tool for continuous improvement to a strategic tool for navigating change and disruption, helping businesses stay agile and resilient in an era of rapid technological advancement and evolving market demands.

Research indicates that 41.1% of companies reported the highest impact on medium- to long-term economic performance in the area of customer satisfaction after implementing the EFQM model, underscoring its effectiveness.

In this guide, we'll explore how the EFQM Excellence Model has become an indispensable tool for organizations seeking to thrive in an increasingly complex business landscape, and more importantly, how you can leverage its principles to drive meaningful transformation in your own organization.

Understanding the EFQM Excellence Model

The EFQM Excellence Model, developed by the European Foundation for Quality Management (EFQM), is a comprehensive framework designed to help organizations assess and improve their performance. Initially created as a quality management tool, it has evolved into a strategic approach for navigating change and managing disruptions in today’s dynamic business environment.

What sets the EFQM model apart is its holistic approach. It provides organizations with a comprehensive view of their operations while identifying areas for improvement and offering practical tools for measuring progress. At its core, the model emphasizes cause-and-effect relationships, enabling companies to evaluate their actions, assess outcomes, and identify performance gaps.

This framework not only helps businesses gauge their current position in their excellence journey but also outlines clear steps to enhance performance and achieve higher levels of business excellence.

“If you want to set a strong purpose, inspire leaders at all levels and create a performance-driven culture, while remaining agile, adaptable and able to evolve for the future, then the EFQM model is for you.”

Faouzi GHARSALLI

Founder & CEO Leadership 4.0

The 2025 EFQM Excellence Model

The EFQM 2025 Model builds upon its previous iterations, further refining its approach to organizational excellence. Central to the model’s evolution is the emphasis on Sustainable Performance Improvement, which is now the heart of the framework. This focus ensures organizations achieve long-term economic success while integrating environmental and social sustainability into their strategies.

The model also highlights the growing importance of Technology Leadership, particularly the use of technologies like AI to drive innovation, sustainability, and value creation both within and outside the organization’s boundaries.

"I am glad to see the word execution at the center of the new EFQM model. The Excellence movement has always focused on getting things done and on the quality and depth of execution. Today, there are a lot of agitated people who rush from project to another and bump into glass walls."

Hervé Legenvre

Professor & Research Director

As organizations strive for these objectives, they must answer three essential questions at the core of the model:

• Why do we exist?
• How do we deliver value?
• What have we achieved?

These questions guide organizations as they navigate the three critical segments of the EFQM 2025 Model: Direction, Execution, and Results.

Direction:

The Direction segment helps organizations establish a clear foundation for their future success. It defines the purpose, vision, and strategy that will guide the organization’s path forward, ensuring that all efforts align with a shared vision. This segment also emphasizes the importance of leadership and organizational culture in steering the business towards its long-term goals.

• Purpose, Vision & Strategy: This criterion helps organizations define their reason for existence and establish a clear, actionable strategy. It involves developing a compelling purpose that drives the organization’s long-term goals and aligning that purpose with a well-defined vision. A strong strategy ensures that the organization is moving in the right direction and can achieve its objectives in a sustainable way.
• Organizational Culture & Leadership: This focuses on building a culture that fosters shared values and effective leadership at all levels. It is crucial for leaders to demonstrate strong decision-making skills, provide direction, and create an environment that encourages collaboration and continuous improvement. Effective leadership drives the organization's culture, ensuring it is aligned with its vision and strategy.

Execution:

The Execution segment is where the organization turns strategy into action. It focuses on the operational aspects of the business, ensuring that stakeholders are engaged, sustainable value is created, and performance is continuously improved to meet evolving demands. This segment helps organizations adapt their strategies to achieve their goals and create lasting success.

• Engaging Stakeholders: This criterion emphasizes the importance of understanding and responding to the needs of key stakeholders customers, employees, partners, and others. By engaging stakeholders effectively, organizations can create strong relationships that support their strategic goals and ensure mutual success. Stakeholder engagement is crucial for maintaining a competitive edge and driving innovation.
• Creating Sustainable Value: Organizations must shift their focus from short-term gains to long-term sustainability. This criterion ensures that the organization creates lasting value that benefits not only the business but also society and the environment. It involves making decisions that balance economic success with social and environmental responsibilities, ensuring the organization’s long-term viability.
• Driving Performance & Transformation: In this criterion, organizations are challenged to maintain excellence while preparing for future changes. This involves optimizing current operations to deliver high performance today and being agile enough to transform processes, structures, and technologies to remain competitive in the future. Continuous improvement is key to ensuring that the organization evolves with changing market conditions and emerging trends.

Results:

The Results segment focuses on measuring the success of an organization’s efforts. It evaluates how well the organization is performing in both strategic and operational terms, providing insights into stakeholder perceptions and the overall effectiveness of the organization’s strategies. This segment is crucial for understanding the outcomes of the organization’s actions and identifying areas for further improvement.‍

• Stakeholder Perceptions: This criterion evaluates how stakeholders customers, employees, and partners perceive the organization’s performance. It helps the organization understand its reputation and the effectiveness of its strategies from the viewpoint of those who interact with it. Positive stakeholder perceptions are essential for building trust and long-term relationships.‍
• Strategic & Operational Performance: This criterion assesses how well the organization is executing its strategy and achieving its operational goals. It involves measuring key performance indicators (KPIs) and outcomes to determine how effectively the organization is delivering on its promises. Continuous monitoring of strategic and operational performance helps ensure that the organization remains on track to achieve its long-term objectives.

Each of these seven criteria can be further broken down into sub-criteria, providing specific starting points for practical implementation, and ensuring that businesses can systematically assess and improve their operations.

RADAR Logic within EFQM

In the EFQM Excellence Model, organizations assess their performance and improvement initiatives using the RADAR logic a diagnostic tool designed to enhance current operations and identify areas for growth. 

RADAR is an acronym representing:

• Results: Establishing the desired outcomes aligned with the organization's strategy.
• Approach: Developing methods to achieve these outcomes effectively.
• Deployment: Implementing the approaches systematically across the organization.
• Assessment and Refinement: Regularly evaluating and refining the approaches to foster continuous improvement.

Typically, the evaluation involves a table listing each segment and its criteria, accompanied by attributes indicating the degree to which these criteria are fulfilled. A specific scoring system is then applied to provide a comprehensive assessment.

EFQM Implementation Roadmap

The journey to organizational excellence through the EFQM Excellence Model requires a thoughtful and strategic approach. Before diving into the implementation, it is crucial to assess whether the EFQM framework aligns with your organization’s core values, vision, and readiness for transformation.

By following a step-by-step roadmap, you can ensure a structured approach to achieving sustainable performance, continuous improvement, and long-term success. Below is the roadmap to guide you through the process:

1. Assess Organizational Readiness

Before embarking on the EFQM journey, organizations need to evaluate whether the EFQM approach aligns with their values and objectives. Ask the following key questions:

• Does the EFQM model reflect my organization’s core values of excellence?
• Are we committed to achieving long-term, sustainable performance and growth?
• Is excellence not only achievable but maintainable through continuous improvement?
• Are our people and value chains ready to support and deploy this approach?

If the answers align with EFQM's fundamental principles, then proceed to the next steps.

2. Understand the EFQM Model

Once organizational readiness is assessed, it's time to dive deeper into understanding the EFQM Excellence Model. Review the EFQM framework in detail, focusing on the RADAR logic (Results, Approach, Deployment, Assessment, and Refinement) and the seven criteria of the model. This will be crucial in setting up self-assessments and aligning the model to your specific organizational needs.

Recognize the Versatility of EFQM

EFQM is a versatile model that can be used for various purposes, beyond just self-assessments. In recent times, organizations have adopted EFQM to serve multiple strategic objectives, such as:

• Understanding Organizational Maturity: By using EFQM, organizations can evaluate their current level of maturity in key areas like leadership, strategy, and results.
• Driving Transformation Programs: EFQM helps organizations plan and implement transformation programs by identifying areas for improvement and providing a structured approach to achieving excellence.
• Building Organizational Capability for Improvement: The model is used to enhance organizational capabilities, ensuring that businesses can continuously improve their processes, performance, and outcomes.
• Building a New Business: EFQM can also guide the development of new businesses, ensuring that foundational strategies and processes align with best practices for excellence and sustainable growth.

These diverse uses of the EFQM model highlight its flexibility and wide-ranging applicability in driving organizational change and improvement.

3. Evaluate Current Performance

The next step is to evaluate your organization’s current performance. This is a critical stage for understanding where your organization stands in relation to the EFQM criteria and identifying areas for improvement.

Key activities during this phase include:

• Conduct a Self-Assessment: Use the EFQM RADAR matrix to conduct a self-assessment of your organization’s strengths and opportunities. This involves evaluating your current performance across the seven EFQM criteria, including areas like leadership, strategy, stakeholder engagement, and results.
• Engage Stakeholders: Involve key stakeholders (employees, customers, partners) in the evaluation process to gather their perspectives and insights on organizational performance.
• Use Benchmarking: Compare your performance against industry benchmarks or best practices. This helps identify gaps in performance and provides a clearer picture of where improvements are needed.
• Identify Key Areas for Improvement: Based on the self-assessment and benchmarking results, prioritize the areas that require immediate attention. Focus on gaps that will drive the most significant improvement in alignment with the EFQM model.

By completing a detailed performance evaluation, you will have a clear understanding of your organization’s starting point and the specific areas that need focus as you move forward with EFQM implementation.

4. Define Strategic Goals and Performance Metrics

Following the evaluation of your current performance, the next step is to define clear strategic goals and performance metrics that will guide the organization toward improvement and excellence. This involves using insights gained from the self-assessment and benchmarking process to set actionable objectives.

Key activities in this phase include:

• Set Strategic Goals: Use the findings from Step 3 to align the organization's strategic goals with the EFQM model. This ensures your goals are comprehensive, addressing financial, operational, customer-focused, and societal objectives while also incorporating areas identified for improvement.
• Identify Key Results and KPIs: Based on the strategic goals, define measurable Key Performance Indicators (KPIs) that will track progress across the seven EFQM criteria. For example, if the assessment highlighted gaps in customer satisfaction or operational efficiency, set KPIs related to those specific areas (e.g., Stakeholder Perceptions, Operational Performance).
• Utilize the RADAR Logic: For each strategic goal, apply the RADAR approach. This will help define the Approach for achieving the goal, the Deployment of strategies, and the Assessment & Refinement process to ensure continuous improvement. RADAR ensures that goals are not only achieved but also maintained and refined over time.

By defining clear goals and metrics, this step ensures that your organization has a structured and measurable way to track progress and address the areas identified in Step 3.

5. Implement the EFQM Model

With clear goals and performance metrics in place, the next step is to begin the implementation of the EFQM Excellence Model across the organization. This phase involves putting the strategy into action and ensuring that all departments are aligned with the goals set in the previous phase. The EFQM model should be integrated into the day-to-day operations, ensuring continuous improvement across the organization.

Key activities during this phase include:

• Develop a Clear Implementation Plan: Create a detailed roadmap that outlines how the EFQM model will be applied across all areas of the organization. This plan should include timelines, resource allocation, and performance milestones, as well as a clear approach for tracking the achievement of strategic goals and KPIs identified in the previous phase. Ensure the plan is flexible enough to allow adjustments based on ongoing assessments.
• Integrate Stakeholder Engagement: Building on the insights gained during the performance evaluation phase, engage key stakeholders (customers, employees, suppliers, etc.) to ensure their needs are understood and aligned with your strategy. Stakeholder engagement should be a continuous process, with regular feedback loops to assess whether the strategies are meeting expectations. This will be crucial for maintaining relevance and driving transformation, as highlighted earlier.
• Align Culture and Leadership: Ensure that the organizational culture is aligned with the values of the EFQM model. This includes developing a leadership team that drives continuous improvement and strategic thinking. Leaders should embody the principles of the EFQM model and empower teams to adopt the model's criteria across all levels of the organization. Fostering a culture of shared values, innovation, and sustainability will be key to the long-term success of the EFQM implementation.

By focusing on these activities, the EFQM model can be successfully deployed, ensuring that the organization progresses toward its strategic goals and fosters a culture of excellence and continuous improvement.

6. Monitor Progress and Collect Feedback

The implementation process involves ongoing assessment and refinement:

• Use EFQM Scoring Charts: During the implementation, self-assessments using the EFQM model scoring system (such as the 1000-point scoring system) can help track progress and identify areas for improvement. Use the RADAR Matrix to assess how each criterion is being met and refine the approach as needed.
• Collect Internal and External Feedback: Gather feedback from internal stakeholders (employees) and external stakeholders (customers, suppliers, etc.). This feedback will help you assess the effectiveness of your approach and identify areas for improvement.
• Implement Changes Based on Feedback: Once feedback is collected, make data-driven decisions to improve your approach. This could involve adjusting strategies, improving communication, or enhancing stakeholder engagement.

7. Sustain and Scale Excellence

After implementing the EFQM model and seeing initial results, it’s important to ensure sustainability and scalability:

• Maintain Focus on Continuous Improvement: Even after achieving success, organizations must remain committed to continuously improving their operations. Use feedback and performance insights to drive further enhancements.
• Leverage Technology and Innovation: Make use of technologies (such as AI, data analytics) to continuously refine strategies and performance. Innovation should be at the heart of the organization’s improvement efforts.
• Focus on Long-Term Viability: Sustainability is key. Ensure that strategies and results align with long-term organizational goals, taking into consideration market dynamics, technology trends, and evolving stakeholder expectations.

8. Review and Scale Progress

Review the overall progress at regular intervals (e.g., quarterly, annually) to assess whether the organization is on track with its goals and EFQM criteria. This phase involves:

• Comparing Results to Industry Benchmarks: Use external benchmarking to compare your organization’s performance against competitors or best-in-class organizations.
• Realign Goals Based on Results: Update and realign goals based on changing circumstances and new performance insights.

Benefits of Implementing the EFQM Model

By adopting this framework, organizations can unlock significant advantages that drive both operational efficiency and long-term success. Below are some of the key benefits that come with applying the EFQM model:

• Increasing Organizational Performance and Efficiency: One of the core benefits of the EFQM model is its ability to improve organizational performance and efficiency. This insight allows for better resource allocation and process optimization. By identifying areas for improvement and focusing on the pursuit of excellence, the EFQM model empowers organizations to enhance productivity, streamline operations, and ultimately reduce costs.‍
• Improving Customer Satisfaction: Customer satisfaction is a fundamental pillar of the EFQM model. This emphasizes aligning products and services with the needs and expectations of customers. By focusing on customer orientation, businesses can create a more responsive and customer-centric organization. It not only results in higher levels of satisfaction but also strengthens customer loyalty. A loyal customer base directly contributes to a business's competitiveness and long-term growth in the market.‍
• Promotion of Employee Motivation and Participation: The EFQM model recognizes that employees are at the heart of an organization’s success. It encourages a culture of participation by empowering employees and valuing their contributions. By giving employees a voice and acknowledging their skills, businesses can boost morale and motivation.
• ‍Support with Strategic Planning: Strategic planning is essential for any organization aiming for sustained growth and success. It helps leaders define clear organizational goals, identify the resources and skills required, and develop actionable plans for achieving those goals. Moreover, the model encourages a long-term perspective, ensuring that organizations are not only preparing for current challenges but are also anticipating future opportunities and risks.‍
• Facilitating Change Management: The EFQM model excels at helping organizations work on change management effectively. By focusing on continuous improvement, the model creates an environment where change is actively driven and embraced. It offers a structured methodology to guide businesses through transformation, ensuring smoother transitions and less resistance to change.‍
• Encouraging Agile Practices: Another advantage of the EFQM model is its ability to support agile practices. By continuously analyzing and optimizing processes, the model encourages businesses to adapt quickly to changes in the market, technology, and customer expectations. ‍
• A “Toolbox” for Custom Approaches: The EFQM model is open-ended, providing businesses with a "toolbox" of different approaches. Instead of prescribing a one-size-fits-all solution, the model allows companies to choose strategies that best fit their unique challenges and goals.
• ‍Intensive Feedback Integration: Feedback is a crucial component of the EFQM model. It emphasizes the importance of incorporating input from all key stakeholders, whether employees, customers, or partners. This feedback loop helps organizations continuously refine and improve their strategies, processes, and outcomes, driving even higher performance levels.

Criticisms & Challenges of the EFQM Excellence Model

Despite its widespread recognition and benefits in driving organizational excellence, the EFQM Excellence Model is not without its challenges. Here are some key criticisms that businesses should consider:

• Complexity and Effort Required: One of the most common criticisms of the EFQM model is its complexity. The model can be difficult for smaller organizations or those with limited resources to fully implement. The process requires significant effort, including training, consulting, and system adaptations, which may be beyond the reach of businesses with constrained budgets.
• Lack of Concrete Solutions: While the EFQM model is effective at identifying areas for improvement, it does not always offer clear, actionable solutions. Organizations may find themselves pinpointing problems without knowing exactly how to address them, which can hinder progress in some cases.
• Self-Assessment and Subjectivity: The model heavily relies on self-assessment, which introduces the risk of subjectivity. The results can be skewed by internal biases or a lack of objectivity in the evaluation process, leading to inaccurate or incomplete assessments.
• Cultural Shifts and Employee Buy-In: Establishing a culture of continuous improvement is often one of the biggest challenges in implementing the EFQM model. It requires buy-in not only from top management but from all levels of the organization. For companies that do not have an existing quality management system, this cultural shift can be particularly difficult to achieve and maintain.‍
• Data Collection and Analysis: The model requires systematic collection and analysis of performance data. This can be time-consuming and requires specialized knowledge, which many organizations may struggle to maintain. Without the right resources, data analysis can become a bottleneck in the improvement process.

Comparing EFQM and OKRs: Differences, Similarities, and Opportunities for Integration

In addition to EFQM, several other management frameworks aim to enhance strategic performance and drive organizations forward. Among these, OKRs (Objectives and Key Results) stand out as a focused and action-oriented approach. 

Can EFQM and OKRs Work Together?

Despite their differences, EFQM and OKRs can complement each other effectively. EFQM provides long-term strategic management, while OKRs offer a practical way to implement and track progress on specific objectives.

For example, organizations can use OKRs to address areas for improvement identified in EFQM self-assessments. By involving employees in setting OKRs, the complexity of EFQM is balanced with actionable, team-driven goals. This ensures that all employees understand their role in achieving the organization’s vision and strategy.

By combining the broad perspective of EFQM with the precision of OKRs, businesses can align long-term ambitions with short-term execution, driving sustainable excellence.

Case Studies Of Successful Implementation‍

Abu Dhabi Police Applying the EFQM Model ‍

Challenge:

Modernizing a police force goes beyond adopting new technology. While apps and software are crucial, the real challenge lies in focusing on outcomes, improving service delivery and enhancing staff culture and satisfaction to better serve the community.

Solution: Abu Dhabi Police embarked on its journey toward excellence in 2007, guided by government vision. The force adopted the EFQM model to shift towards a 'stakeholder-centric' approach, improving both the services provided to the public and internal operations.

The EFQM model helped the leadership shape a positive organizational culture and plan for unforeseen challenges. Key outcomes included:

• Digital Transformation: Enhancing work and services to future-proof the organization.
• Dynamic System Transition: Shifting from routine-based processes to a results-driven, integrated system focusing on employee productivity and well-being. 
• Organizational Resilience: Developing flexible systems to adapt to both expected and unexpected changes.

The EFQM model has provided Abu Dhabi Police with a map for continuous improvement. As Major General Eng Nasser S Al Yabhouni said, the journey with EFQM has been rich in valuable insights, helping them achieve excellence in service and operations. 

Alpenresort Schwarz Applying The EFQM Model

Challenge: Maintaining excellence at a five-star resort is no small feat, especially when the goal is not just to sustain high standards but to continually innovate and improve. For Alpenresort Schwarz, located near Innsbruck, Austria, this ambition has been at the heart of their operations since the Pirktl family opened the guesthouse over 50 years ago.

With amenities ranging from a world-class spa and gourmet dining to a 92-meter water slide and a 27-hole golf course, the resort's challenge was ensuring constant improvement in guest experiences, employee engagement, and stakeholder satisfaction. 

Solution: For nearly two decades, the Alpenresort Schwarz has leveraged the EFQM model to benchmark performance and drive continuous improvement. Introduced during their first formal strategy session, the model has since become an integral part of annual planning. It helped define the resort’s mission, vision, and values while involving stakeholders in their journey toward excellence.

Key outcomes from using the EFQM model include:

• Improved Metrics: Long-term increases in employee satisfaction, guest recommendations, leadership quality, and financial performance.
• Recognition: In 2013, Alpen resort Schwarz became the first Austrian company and only the second hotel ever to win the EFQM Excellence Award.
• Resilience: The model offered practical guidance for reopening after the COVID-19 pandemic.

Today, the EFQM model continues to shape the resort's strategies, helping the Pirktl family align their operations with the UN Sustainable Development Goals (SDGs) and ensuring a five-star experience for every stakeholder involved.

Conclusion

In today's fast-changing business landscape, organizations seek robust frameworks to drive performance and manage transformation. The EFQM Model emerges as a powerful global management approach that enables companies to systematically assess their current capabilities and chart a strategic path toward operational excellence.

By emphasizing quality management and continuous improvement, the EFQM Model provides a structured methodology for organizations to critically evaluate their strengths, identify improvement opportunities, and implement targeted enhancements across key business dimensions.

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