October 22, 2007

Successful Organizations

Did some query in the database of successful organisations of EFQM, found something very interesting.

A lot of major automotive company appeared in the database, their involvement are limited to the production plant in eastern European countries.

How can this be explained? The trend of shifting manufacturing business to eastern Europe, since their labour costs are slightly cheaper? But isn't EFQM Excellence Model are designed to be suitable for all kinds organisations in all industries regardless of their size? Thought one of the best approach to start EFQM Excellence Model was Top-Down or Headquarter Roll-Out.

The majority of key competences of automotive companies remains to be in western Europe, why they falls behind than their colleagues in the east? Is this an indication of any sort?

- One comment Not publicly viewable

  1. Paul Roberts

    Another interesting observation. I think that you will find that most of the Eastern European automotive plants are greenfield sites, set up purposefully with new labour, applying good practice to achieve higher levels of productivity than their brownfield counterparts in Western Europe. It is much easier to start with a new site and new labour than convert those who are steeped in ineffective practice doing things the ‘way that we’ve always done it’.

    12 Nov 2007, 11:44

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