Quality In Business
| Barriers To Quality | Achieving Higher Quality | Benchmarking and Quality Organisations | Other Quality Organisations | Conclusions |
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Benchmarking and Quality Organisations

Assume some of these improvement measures have been implemented, and that they have had a measurable positive effect on your business. As a manager, how do you know whether the improvement is enough to make your business competitive? The answer is to benchmark.

Benchmarking means comparing your business with others in relative terms. To make this easier, various organisations have produced generic standards of quality which businesses can assess themselves against, regardless of whether they are in the same field (i.e. service providers can therefore compare quality with manufacturing companies, or research laboratories, etc.).

Example Organisation - EFQM

The European Foundation for Quality Management (EFQM) was formed in 1988, and includes over 600 member businesses and organisations from the private and public sectors. The FFQM have produced a Model consisting of nine categories corresponding to key business areas. The 9 categories are divided into 2 groups, as follows:

The first five - Leadership, People (i.e. staff), Policy And Strategy, Partnerships And Resources, and Processes - are known collectively as enablers. These are the factors which allow businesses to create quality products.

The remaining four are the results which the business produces - People Satisfaction, Customer Satisfaction, Impact on Society, and Key Performance Results.

EFQM assists businesses to train their staff to objectively identify strengths and weaknesses in their business and assign a score in each of the nine categories. Data for the assessment is gathered and analysed using the techniques discussed earlier in this article, especially staff and customer surveys. This assessment then provides a starting point from which further improvements can be made and measured, and the scores recorded can be verified by independent EFQM assessors and compared against scores from other member businesses.

If the verified scores are sufficiently high, and have shown a significant improvement over a short period, the business may enter itself into competition for the European Quality Award administered by the EFQM. The competition is run every 2 years, and includes categories divided by size of business and public / private sector concerns. Achievement of the EQA would boost the profile of any business, to such an extent that it would be a role model to other companies and organisations wishing to raise the quality of their business.