All entries for Sunday 10 July 2016
July 10, 2016
Being honest with myself, I didn't understand the EFQM Model the day we had the EGQM seminar. Being more honest, I didn't get it 100% after one week. The process to develop an appreciation for the EFQM took me more practice and time. The good news is that now I feel it has become a part of me. It took me time to digest the concept but using it on KBAM has helped more to do it.
First of all, the EFQM can be applied to any business; European or non-European ("after Brexit will there be a BFQM, British Foundation for Quality Management :o?" Jajaja great joke of Omair), any small, medium or large company and without importance of the industry, it belongs to.
When using the EFQM criteria to analyse the 5 Years Resources Allocation Plan I made, it helped me understand how the proposal contributes to the whole organisation and what could be its opportunity areas to contribute more the success of the company.
I could have applied it when I worked in all my important projects. Of course, I missed the chance because I didn't know the EFQM before but from now on, I can apply it to future ones. That way, I will always assure that the projects of the company aim the path of excellence!
As mentioned before, allocating resources is a difficult and important process every organisation has. I would like to mention a few more issues I have encountered:
Keeping habits: Humans practice habits. It can be very helpful, like waking up every day 6:00 a.m. sharp to start studying... but what if the habit isn't good and we just repeat it as an inherited custom. For example, allocating our resources on X or Y... maybe X and Y aren't profitable for the company but they are still there.
This happens often in companies. I had a few projects that to be honest although we weren't sure they still work we still did them because they were part of the Status Quo. To stop it, we need to acknowledge where are we putting the company's resources. A good proposal from Goedhart, Smit and Veldhuijzen (2013) is to track the resources of each year versus the last one in order to make comparisons. That way I will know if I have been just re-allocating the resources because tradition or because a more intelligent move.
Another important issue I have found is what I've already mentioned in a post... Individual Benefits. I liked much the unorthodox solution given by Lovallo and Sibony (2010). After analysing the proposals, give a pile of poker chips to each participant and ask them to bet on projects they deserve the funding. This is a fun way to concentrate the minds on the big picture and avoid the individual issues
The last issue I would like to mention is something that is difficult for most of us: Letting Go. It is in our nature to hold the things we possess. Just as it happens in private life, it does in the professional. It is very difficult to leave a business that has served well a company in the past. An approach recommended by Horn and Viguerie (2006) is to imagine the company isn't ours and ask whether the market fundamentals would make investments in each of them. That way it is probable to have a more honest view of the resource allocation.
These are some of the issues we can encounter when allocating resources. It is important to address them to improve the quality of the process.