October 16, 2013

Group think and EFQM

So one of the key concepts and themes of the EFQM Model is that the leaders within the organisation need to set a clear goal and direction for the business to go in for the pursuit of excellence. However, are there any factors that necessarily guarantee that the policies chosen and pursued by a business are the correct ones?


My thinking for this stems from my limited knowledge of the organisation Enron. Enron rapidly grew in size, but management (under pressure from shareholders) who demanded better and bigger results began to take risks and gambles that were unsustainable. This led to the organisaton ultiamtely reporting financial accounts that were fraudulent before the organisation eventually went out of business in the early 2000s.


Whilst not a direct link to EFQM, this example got me thinking about whether the processes an organisation implements in pursuit of achieving excellence are necessarily the right ones. Furthermore, the processes an organisation use when undertaking such a change of policy can see an organisation get lost in and amongst all the new processes and lose sight of the orginal target.


Therefore, I think this highlights the importance of communication and honesty within any organisation seeking to undertake a quality improvement programme. It is important that if an incorrect process or strategy is implemented, it is quickly realised and rectified as soon as possible before business performance starts to suffer.


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