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The underpinning principles of the EFQM Model: part II

In this article, Geoff Carter talks about why it is important for an organisation to take a stakeholder-centric view of the world.
Seven figures representing stakeholders standing around a circular table that is divided into slices

The EFQM Model has been regularly reviewed and refreshed over the years to keep it relevant. Here we discuss briefly two of the guiding principles that have remained a constant theme within its design.

The first guiding principle is that the organisation is seen to be taking a stakeholder, rather than a shareholder, view when making decisions. Stakeholders have been at the heart of the EFQM Model since the beginning. Successful organisations will consider their relationship with customers, employees, financial stakeholders, regulators, partners, suppliers and the wider community. In other words, they understand their position in the ecosystem and the importance of these relationships to their future.

The second guiding principle is that the different elements of the EFQM Model are connected to each other. Nothing operates in isolation. Let’s continue with the importance of stakeholders as an example of these linkages.

If you start in the Direction pillar, you will see that an organisation is invited to identify and understand stakeholder needs.

Let’s move on to the Execution pillar next. Here the organisation is invited to describe how it is engaging its stakeholders. It is also encouraged to think about how it creates sustainable value for its stakeholders.

Finally, in the Results pillar, the organisation is encouraged to measure the perceptions of its main groups of stakeholders. It will use these measures to understand how well it is satisfying the needs of the stakeholders.

There are many other examples of linkages within the EFQM Model. As you become more familiar with the detail of the EFQM Model, perhaps you will spot some of them for yourself.

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