WHAT WE DO & HOW WE HELP


CREATE AND DRIVE VALUE

How can we really create sustainable value to our customers?

We deliver the best customer experience journey; we start working to know you, understand your environment, your challenges and inspirations, create a sound corporate strategy and a transformation road map, build support for the change, execute the transformation, and measure business impact.

We are value driven, and we help our clients in defining, creating and driving the value. Value can be hidden anywhere in business processes, from the early stages of designing products and services and supply chain to mainstream production processes to marketing down the channels. It is extremely important for any business to understand where the real value is, define it in a clear format, design the business processes accordingly to create the value and drive it all the way to success...

We help our clients to identify real needs and expectations which are usually invisible below the iceberg, to research, analyse and evaluate the end-to-end value chain and prioritise value drivers, develop alternative point of views and prepare alternative strategies. Each project starts with quantified and clear goals to be achieved.

To Create and Innovate; we identify customer, process, people and results oriented improvement opportunities, we catalyse innovation in all aspects and we nurture cultural needs towards change and innovation.


YOU DON'T WANT TO CHANGE? DON'T WORRY, SURVIVAL IS NOT MANDATORY!

“It is not necessary to change. Survival is not mandatory...” W. Edwards Deming

Your fitness level is important whenever the issue is survival or maybe you agree with famous quality guru W. Edwards Deming's saying and don't feel the urge to survive. Obviously survival and change are both not optional for any living organism and organisation. Yet, change is usually difficult or even impossible, mostly not due to the lack of proper tools or techniques available but, due to the ignorance or neglect of human side of the change itself.

There are various reasons why change fails in organisations, here is some 15 reasons from Ken Blanchard:

  1. People leading the change think that announcing the change is the same as implementing it.
  2. People’s concerns with change are not surfaced or addressed.
  3. Those being asked to change are not involved in planning the change.
  4. There is no urgent or compelling reason to change. The business case is not communicated.
  5. A compelling vision that excites people about the future has not be developed and communicated.
  6. The change leadership team doesn’t include early adopters, resisters or informal leaders.
  7. The change isn’t piloted, so the organisation doesn’t learn what’s needed to support the change.
  8. Organisational systems and other initiatives aren’t aligned with the change.
  9. Leaders lose focus or fail to prioritise, causing “death by 1,000 initiatives.”
  10. People are not enabled or encouraged to build new skills.
  11. Those leading the change aren’t credible, they under-communicate, give mixed messages and do not model the behaviours that change requires.
  12. Progress is not measured, and no one recognises the changes that people have worked hard to make.
  13. People are not held accountable for implementing the change.
  14. People leading the change fail to respect the power of the culture to kill the change.
  15. Possibilities and options are not explored before a specific change is chosen. 

Genuine willingness and readiness to change are basically the most important human related factors, before any attempt to change in organisations. We help you discover and understand the reasons and root causes of the resistance to change - even if it is only in your own mind - and be with you to set clear objectives to overcome the difficulty.

We also value the project owner’s, sponsor’s and senior management’s dedication to change, with an internal locus of control and readiness to create a winning culture. 


CUSTOMER EXPERIENCE DESIGN

Discover what is in your customers’ mind and heart, which is the best way to success!!!

Imagine you want to buy a car, you gather information about the cars you prefer, compare them with what you want, need and can afford, narrow down your choices to best matches and go to a car dealer to check and test… Including all these steps and the real time visit to the showroom, it's the “customer/user experience” for the car dealer. You will choose the best option for your case from several different choices and this dealer is just one of them. The user experience includes how you gather information, how you compare these choices, what you expect and experience during your visit to the dealer, how you make your final decision and what you experience after you buy the car…

According to how the dealer wants to position itself in the competition and what are his plans to influence you during your visit and testing, they will design the whole experience input/output cycle. Where the dealer is located, the size and layout and decoration of the facility, the staff, how they are dressed, how they take care of you, waiting times, how and where you wait, catering during your visit, the knowledge of the staff, the informative and the car testing sessions…

Probably there are more details which have an impact on your decision, and all are part of your buying decision, and whether you are 99% determined to buy a specific car or not, the experience at the end has a significant impact on your decision… This is the reason car dealers design by closely investigating and examining all stages of the decision making process, to give you the best experience all the way to the final buying decision…

This is valid in every day of our lives from where and what to eat at lunch, to buying books, shoes, mobile phones, holidays, etc… Even deciding on our children’s education and our elderly's health care. Every buying decision goes through a short or long experience. Companies selling products and services need to understand what you feel, what you want, what you need, what you hate during any buying decision. Every sale and every buyer can be a different example and whether it's a luxury or a mass market product or a service, at the end of the day, each experience is important for the company which is marketing its products/services.

An ultimate real life example to user/consumer experience design is Globetrotters Outdoor Sports Shop from Germany (https://www.globetrotter.de). Since outdoor clothes, shoes and equipment are critical elements in outdoor activities, the users pay high attention to choose the right product according to conditions it will be used, and it is quite difficult to anticipate how the clothes, shoes, equipment, gear will perform under demanding conditions! Globetrotters, seeing this important problem as an opportunity, invested into unique facilities where users test the clothes and equipment under simulated but real outdoor conditions. The basement of the 7.000 square meters. Cologne-Germany shop is turned into a pool where customers can test diving equipment, kayaks, even sail boats…In rain rooms, and freezing rooms, shoes and clothes can be tested by the customers to understand how they perform under extreme rain or cold. Customer/user will be ready to face the difficult natural conditions when he/she is confident after the tests. Imagine climbing to Everest at – 50 degrees celcius and find out that the down jacket doesn't really keep warm enough and safe from the elements at 8.000 + metres; that will be a disaster with possible fatal coincidences at the end…Globetrotters eliminates all doubts that its customers have by designing and providing them the ultimate customer experience….

Designing the user/customer experience is the ultimate way of understanding the dynamics of a user/consumer decision cycle both before-during-after the buying/consuming process.

U/C X (User/Consumer eXperience) we design for you: 

  1. Understand your business, your value proposition, your product/service features and benefits, your positioning
  2. Segment the market according to your targets
  3. Create a physical and/or virtual environment where users/consumers buy, use, consume your products/services
  4. Understand how they make the decision, why they make it, where and when they make it, from what and whom they are influenced, how and where they use/consume the products/services
  5. Elaborate the product/service offer to better align with your marketing strategies and user/consumer expectations
  6. Better sales, more profit, bigger market share, sustainable business for you….

BUSINESS MODEL DESIGN

How do you design the Value Creation and Delivery Machine for your customer?

Business Models vs. Strategy

The concepts of strategy and business models are often used as synonymous terms, although they are not while being closely related.

Business models is the description of how the Organisation understands the customers/beneficiary’s real needs, and create value for the stakeholders through the right value propositions, using optimal resources, channels, partnerships, while performing distinctive set of activities in the value chain. Whereas, Strategy is the purposefully developed plan with a perspective of internal and external environment of what to be achieved. Both are basically about making the right choices, being optimally positioned with respect to competition and winning the customer’s continuous interest in the business context.

While business models can be considered as a part of the strategy, strategy refers to the plan about which business models are designed and used under various conditions and contexts, and obviously coping with ever-changing trends, threats and evolving opportunities are the topics of strategy.

Deliberately defined or adopted while evolution every organisation has a business model, not meaning that every organisation has a sound strategy designing and choosing the range of options to survive and outpace the competing forces. There may be various intertwined business models working coherently under the same strategy, we need the strategy to effectively use time and resources without losing on a contrasting, irrelevant or inefficient activities.

As a simpler analogy, strategy is designing and building the machine, the business model is the machine itself.

Business Models are just the models of your Value Creation and Delivery Machine

First of all Business Models are not Business Plans, Business Plans are detailed descriptions of Strategic Plans' tactics and activities that do involve the Business Models. The Business Model is a conceptual summary or simply a model of the value creation and delivery process. Business Model design is based on a continuous improvement cycle of iterations of research, hypotheses formulation, validation and testing of hypotheses, changing as necessary and their execution. 

With no surprise the Value Creation and Delivery Machine consists of many components, parts and pieces working in harmony to produce more than the sum of its parts. A business model can be built on an Organisation’s service or product levels or on family of latter and it is a composition of specific components, which are describing the most important parts of an Organisation’s operational logic at a high level.

There is a wide variety of approaches to think on business models, and create and sketch a one page summary. The most important benefits of these approaches are the simplicity to overview and elaborate, create a medium for brainstorming possible business models, a good tool for prioritisation, tracking improvement and on-going learning.  Some of them are being more popular than others (e.g. Business Canvas Model by A. Osterwalder and Steve Blank, Lean Canvas by Ash Maurya, and a number of combination and derivation of the latter)

The basic components of various Business Model sketching approaches are:

  • the customer segments; who are typical customers, can we group them according to several stereotypes to ease our typical customised offerings
  • the problem; major and most important problems of the customer
  • the solution; key features of our service or product that solves the problems
  • the value proposition, the unique value proposition; what and how are we offering to customer segments different than the competitors, how do we solve their problems, how do we ease, how do we contribute, how do we create value etc...
  • the channels; which channels we are using to reach the customer segments, how do we deliver our goods and services, how are we touching the customers
  • the customer relationships; what type of relationship is expected and should be established between the customer segments and the Organisation
  • the key activities; what are the key activities we have to execute to deliver our proposed value to our customer segments
  • the key metrics; the key activities we measure
  • the key resources; what key resources are required to execute our key activities
  • the key partnerships; who are the key partners we have to choose and work in harmony to create value to our customers, what key resources should they have and what kind of activities they are expected to perform
  • the cost structure; what are the most important cost factors embedded in our model, including economies of scale-scope, fixed or variable etc...
  • the revenue structure; for what value customers are willing to pay, what will be their interaction frequency, what are the models of recurring revenues and ownership of the goods and services

Some of these approaches do even include the mission and the vision of the company, the internal and external critical success factors and relevant strategies to achieve, develop and defend the position in the market to include more strategy elements. 

Business Model Assessment - Pen on Paper

Independent of what Business Model sketching approaches is used, the most typical way to start brainstorming is working in groups and teams brainstorming with pen on paper, post-it, white board etc... 

Business Model's high level view helps Organisations to make iterations on the business model components, to test these amendments in the relevant market segments and to build and validate the value propositions to be launched in the future.

Business Model Innovation - Get more sophistication, more team work and validation

Some of the Business Model sketching approaches offer digital working tools enabling team work, a typical business model canvas is represented below:


STRATEGIC  MANAGEMENT OF CUSTOMER CENTRIC BUSINESS MODELS

Customer Experience Design and Business Model Innovation
(I have a product/service idea but what will the customer think about it? How can I constantly grow, and ensure continuous profitability for my business?)

 

In a world where customers face various product/service alternatives and where competition have never  paid such outstanding efforts in order to increase product/service performance; it is highly critical that your customer experience which enables you to get your share of your customer’s mind is different than your competitors’. It is also very important that this experience allows all the elements in your business model to continuously and smoothly function in times, where you hardly touch your customers.

Customers/users are the most critical factor in designing the products & services for any business and any company. The ultimate target is, to understand what is in the customer/user’s mind and accordingly designing innovative business models, products and services. Things keep changing, so does the needs and wants of the customers... Competition is cut-throat... In such a competitive environment with multiple un-knowns, smoothly touching the customers at the most critical points and continuosly understanding the change, learning from experieneces, gathering valuable data and analysing in the right way, developing alternative strategies, and introducing unmatched business models will be the keys for success...

VEGO approaches all businesses with the aim to explore:

  • what lies beneath the customer’s needs... we know that we have to dig down into deeper territories
  • what specific experience can be offered to the customers which will in return provide a competitive advantage to their business?
  • how the business model will remain innovative; it is not only the product that adds value but the whole system of servicing, processes, models and the mindset...

INNOVATION MANAGEMENT

How Can Innovation be Sustainably Managed?
(Can Creative Ideas be Sustained without Systematic Management?)

In almost every area of trade and Industry, globalisation causes overcapacity problems, commoditise every product and/or erodes the value created. In this era, success will not necessarily belong to the biggest or largest, but certainly to the most vigilant and prepared, the fastest fish can forge ahead of the big ones. Innovation is a key driver for the success of organisations however organisations struggle with how to manage this process ideally.

We can introduce and establish Innovation Management Systems to your Organisations that focus on

  • Innovation strategies
  • Innovation culture and organisation
  • Planning and designing processes
  • Performance management
  • Innovation Life-Cycle management
  • Enabling factors of innovation

Establishing innovation management systems empower Organisations to become more innovative and to achieve sustainable success with their product, service, process, organisational design and business model innovation initiatives. 

According to the recommended standards CEN/TS 16555-1, implementing an innovation management system provides several benefits to your Organisation, for example, it:

  • enhances growth, revenues and profit from innovations
  • brings fresh thinking and new value to your Organisation
  • proactively captures value from better understanding of future market needs and possibilities
  • helps identify and mitigate risks
  • taps into the collective creativity and intelligence of your Organisation
  • captures value from the collaboration with partners for innovation
  • motivates employee involvement in the organisation and fosters teamwork and collaboration

Innovation management system touches continuously all innovation generating activities in your Organisation, regardless of its size and establishes key components such as:

  • understanding the context of the organisation
  • understanding and using innovation management techniques
  • establishing the leadership and commitment of top management for continuous management of innovation in your Organisation
  • planning for innovation success
  • identifying and fostering innovation enabling/driving factors
  • designing and establishing the innovation management processes
  • evaluating and improving the performance of the innovation management system

Implementation of the innovation management system can be a stand-alone initiative or the best combined results can be obtained, if the innovation management system is delicately integrated into the core operations and management of your Organisation ensuring objectives delivered, performance measured and improved.


STRATEGIC PERFORMANCE MANAGEMENT

Strategy Implementation in 9 Steps and Sustainable Performance
(How your best strategy may not reach a solid performance?)

Institutions and Organisations may have different and effectively formulated strategies, such as providing social and public services, creating difference in the market and gaining competitive advantages, downsizing, growing, fragmenting, merging… However, the success rate of effectively actualiation of the on-the-paper planned strategies is identified at 10 % only. (Fortune Magazine)

We explore and define with you the steps for strategy-oriented management, a precise framework that can be adopted to reach strategic goals, careful deployment of the right approach, method and tools and creating sustainable performance. 

  • Institutional transformation and ready-for-change assessment
  • Enabling factors for transformation
  • Problems in describing the effects of Institutional Strategies to the organisation
  • Strategy Life-Cycle Management and Cultural Alignment
  • The right metrics, KPIs (Key Performance Indicators) and Risk Indicators
  • Strategic Performance Management with QuickscoreTM (Spider strategies)
  • Measuring success with Strategic Process Performance Management with Tibco Nimbus ControlTM

 

CORPORATE GOVERNANCE

Corporate Governance can be described briefly as the system of rules, practices and processes by which a company is managed and controlled. Today, the relationship between ownership structure, company’s overall performance and the demands of the society collaboratively urge companies to exercise a higher degree of diligence in their governance.

Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure (investopedia.com).

Companies’ commitment to sustainable development requires the integration of good corporate governance practices into daily business activities and this is where VEGO comes in service. We help companies improve their governance policies and processes, comply with regulations, adopt and implement risk management.

  • Corporate Governance Assessments
  • Development and Administration of Corporate Governance Policies
  • Family Constitutions
  • Analysis and Development of Boards and Managers
  • Governance and Corporate Social Responsibility
  • Risk Management

MERGERS & ACQUISITIONS CONSULTING

Are you looking for opportunities for buying a company or selling shares of yours?

Rapid growth and development is one of the most significant signatures of the modern era. Growth and development in scale, scope, skills requires various resources including time, money, knowledge and especially networks and partnerships. These resources can be often times organically created and allocated, yet more and more every industry discovered the appeal of partnerships and acquisitions in their the growth path.

Mergers and acquisitions can be considered as an effective method for faster value creation and an optimal way to exploit resources.

How we help;

If you are looking for opportunities to create value by acquiring a business that can contribute with a good strategic fit or merging with a potential target company or if you have strategic decision to divest shares or assets or a part of your business, we can help you to realize your strategic goals.

We identify and maximise opportunities on both “buy-side” transactions for clients interested in acquiring shares, as well as “sell-side” transactions for shareholders wishing to sell, but never work on both the buy-side and sell-side of the same transaction.

We help your company to improve your merger or acquisition process' success and can add considerable value to your business. We assure the proper implementation of each stage of the transaction process to maximise the potential value creation, including pre-valuation support and preparation to the transaction as the sell-side advisors.

On our Sell-Side engagements we:

  1. agree on terms of our mandate
  2. define ground zero position and strategy
  3. analyse business plan provided there is one
  4. use various methods to compute Valuation of Company with available info and data
  5. build a mid to long-term strategic plan accompanying with relevant financial models if there is no viable business plan to work on
  6. give pre-valuation support and preparation to the transaction as the sell-side advisors to optimise the potential value creation (this is a separate sub project that needs to be defined at earlier steps of the engagement)
  7. prepare company introductory documentation
  8. prepare the NDA
  9. identify the targets, with long and short lists
  10. assist to the selection of potential buyers
  11. approach potential investors and organise meetings
  12. collect offers analyse and categorise
  13. participate to negotiations
  14. prepare and assist the due diligence process
  15. finalise the share purchase agreement
 
On our Buy-Side engagements we:
  1. agree on terms of our mandate
  2. define ground zero position and strategy
  3. prepare the NDA and letter of intent
  4. identify the targets, with long and short lists
  5. assist to the selection of potential acquisitions
  6. define purchase price expectation and transaction structure
  7. approach potential targets, organise meetings and visits
  8. assess various facets of companies after the visits
  9. prepare the initial offer and price negotiation strategies
  10. participate to negotiations
  11. conduct the due diligence process
  12. finalise the share purchase agreement

DEVELOPMENT PROJECTS

Local Economic Development (LED) offers local government, the private sector, the not-for-profit sectors and the local community the opportunity to work together to improve the local economy. It aims to enhance competitiveness and thus encourage sustainable growth that is inclusive (World Bank).

Private sector plays an important role as an engine of economic growth and job creation in developing countries. It provides goods and services, generates tax revenues to finance essential social and economic infrastructure, develops new and innovative solutions that help tackle development challenges and it is a central actor in addressing climate change. As such, the private sector is an important strategic partner to help countries eradicate poverty and reduce inequalities and exclusion within broader sustainable development (UNDP). Private Sector Development is to encourage a sound business climate for investment, enhanced productivity, competitiveness, and entrepreneurship, to raise living standards and alleviate poverty in an economy.

Since our early consulting days, we are involved in SME development, cluster development, fostering entrepreneurship, local economic development projects. We learned the hard way from the scratch. Limited information and limited experience at those days, but with determination it took us more than ten years to build our know-how in these fields.

Today, Local and Regional Economic development and Cluster Development are among important fields we work in different countries.

Working with local and/or national governments and stakeholders as beneficiaries under donor funded projects and implementing with UN agencies like UNIDO and ITC, we tackle sectorial and regional development issues, provide special expertise for clusters with our expert pool, analyse the environment, conduct diagnostic studies and needs assessments, improve networking and cooperation,  analyse and develop supply & value chains, develop strategies and recommendations, develop tailor made training programmes and deliver training, prepare action plans and implement together with locals, successfully.

We work in any sector, from olive oil to metal industry, from petrochemicals and plastics to textile and shoes, from medical devices to wine or egg production. We help solving problems in various areas; from supply chain efficiency to innovation management, from effective brand management to process management, from export development to distribution channel management, from human resources management to corporate governance…

At the beginning, it is vital to understand what is a cluster?

A cluster is a sectoral and geographical concentration of enterprises and/or individual producers that produce a similar range of goods or services and face similar threats and opportunities. A cluster encompasses enterprises (MSMEs, but also larger firms) as well as their support institutions from the public and private sectors as well as civil society...

Clusters are usually born naturally due to the reasons of:

  • proximity to natural resources
  • availability of qualified human resources
  • business development services in the region
  • better infrastructure
  • buyers realising the opportunity for procurement

Firms agglomerate due to a mixture of above reasons, but at the same time there are usually barriers for interaction among firms:

  • lack of knowledge
  • sparse networks
  • different “languages”
  • different norms and attitudes
  • different visions
  • low level of trust
  • negative incentives

We know that SMEs and clusters play a critical role in any economy all around the world, for:

  • increasing the quality of labour market,
  • decreasing the cost of production by means of joint purchasing of goods and services,
  • penetrating to new markets and better utilisation of existing markets by creating a cluster brand
  • stronger joint benefits by means of lobbying and similar activities
  • better reach to specialised services
  • development of innovation potential and innovative eco system
  • to become an effective part of a global value chain
  • specialisation and focusing
  • access to finance

Clusters are drivers of innovation, regional development, entrepreneurship, internationalisation and competitiveness.

Developing SMEs in the right direction will help a regional and national economy to grow and stay healthy in the long run. Understanding the problems of the SMEs, researching, diagnosing, analysing and offering road maps and solutions and helping, guiding, coaching and consulting for implementation are our competitive edges in this area…

…and, implementation...

We help regional and/or national development authorities to:

  • Analyse their economic, social and ecological environment to lay down strategies for a sustainable and successful future for the businesses and people.
  • Prepare plans, set priorities and key performance indicators for success.
  • Help them increase their human capacity by providing special training for clusters.
  • Implement plans together with the stakeholders.
  • And help clusters to set up their management, have an action plan for success, implement the plan (usually 1-3 years) and measure success and failure, learn and disseminate…

BUSINESS EXCELLENCE MODELS & TURQUALITY

EFQM® and TURQUALITY® Programs are excellence frameworks about how to best improve the performance of your organisation.

TURQUALITY® (http://www.turquality.com)

TURQUALITY® is an ambitious project associated with bringing “Turkey” and “Quality” concepts together. The project is initiated by the Turkish Government, Ministry of Economy, Turkish Exporters’ Assembly (TIM), and Istanbul Textile and Apparel Exporters’ Association (ITKIB). The initial legal framework was laid out publicly on January 12th, 2004.

TURQUALITY® is basically an accreditation system, which is designed not only for elevating the beneficiary companies to the level of international benchmarks, but also creating awareness on the internationally accepted values like quality and novelty that are actually carried by these brands.

As a “national brand-building program”, TURQUALITY®’s goal is to facilitate and support the success of Turkish brands on international arena.

To achieve these ambitious goals, TURQUALITY® program will broaden its vision to the wider concept of “quality in brand management” and emphasize its support services component with the inclusion of highly customised strategic coaching and consulting.

To support companies in their brand-building efforts, TURQUALITY® helps them to develop essential capabilities, competences, skills and resources necessary to fulfil such a complex commitment through both group and individual activities.

VEGO is an accredited service provider of the TURQUALITY® programme and is your excellent partner in developing your essential capabilities, competences, skills and resources in your way to get prepared for and during your TURQUALITY® journey.

BUSINESS EXCELLENCE MODELS and EFQM (European Foundation for Quality Management) (www.efqm.org)

Business Excellence is a management philosophy which can be adopted by an organisation and it is based on continuously improving the performance of the organisation while ensuring that the needs and demands of all the stakeholders are often not only met but realised over their expectations, in everything that the organisation does.

There are various Business Excellence Models used all around the world in numerous organisations with great versatility, and these models are usually based on total quality management (TQM), continuous improvement, business excellence, best practices and benchmarking. To give a few examples around the globe:  The Australian Business Excellence Framework, Baldrige Criteria for Performance Excellence, The Canadian Framework for Business Excellence, The EFQM Excellence Model, Deming Prize, The Singapore Quality Award Framework are well-known and widely applied frameworks and models on business excellence and quality.

A Business Excellence Model is an overarching framework for management, integration and application of a range of improvement programs, initiatives and quality tools within an organisation. Business Excellence Models present a framework which is specifically designed to assist organisations achieve business excellence by continuous improvement in its overall management and in deployment of all processes while introducing the use and/or creation of best practices throughout the organisation. One of the most remarkable feature of widely accepted business excellence models is that they allow you to compare or ‘benchmark’ your organisation with others, internally or externally, through calculation of your model score against a number of criteria. Your assessment results can be very beneficial since they will most likely reveal the true strengths and weaknesses of your organisation and will highlight the way to continuous performance improvement, and so generate “business excellence”.

In terms of Business Excellence in Turkey, the EFQM Model which was developed by the European Foundation for Quality Management (EFQM) has been widely adopted and it has been used as a management and corporate performance improvement framework and an evaluation tool for nearly 20 years by various organisations. Turkish Quality Association (KalDer) is EFQM’s national cooperation partner.

EFQM describes that excellent organisations:“….achieve and sustain outstanding levels of performance that meet or exceed the expectations of all their stakeholders…” 

With this regard, stakeholders are taken as the people within or beyond the subject organisations or they are other organisations that have influence or interest in the performance of the subject organisation. For example, they can be the organisation’s shareholders, customers, suppliers, business partners or relevant government agencies, representatives of the community or society, etc…

So, whether the subject organisation is a governmental body, a university, a hospital, a large corporation or an SME, excellence philosophy can be adopted and applied in order to continuously improve the organisation's performance and surpass the needs and expectations of all the stakeholders’.

EFQM Excellence Model is the model behind the European Business Excellence Award, which is an award process run by the EFQM. As previously mentioned, this framework is used as the basis for national business excellence & quality awards across Europe, including Turkey. 

EFQM Model consists of nine categories (www.efqm.org):

  • Strategy
  • Leadership
  • People
  • Partnership & Resources
  • Processes, Products & Services
  • People Results
  • Customer Results
  • Society Results
  • Business Results
The fundamental concepts that underpin the EFQM Excellence Model are also stated as: 
  • Adding Value For Customers
  • Creating a Sustainable Future
  • Developing Organisational Capability
  • Harnessing Creativity & Innovation
  • Leading with Vision, Inspiration & Integrity
  • Managing with Agility
  • Succeeding through the Talent of People
  • Sustaining Outstanding Results

BENEFITS OF BUSINESS EXCELLENCE MODELS

FOR PROFIT ORGANISATIONS:

Some of the benefits of adopting and deploying a business excellence models can be listed as below:
  • Model assessments can be used as an organisational self-assessment.
  • The assessment also enables you to compare your results with other organisations (and your competitors as well) at the national and international level and better learn your competitive position.
  • It provides you a unified and common framework to learn and share ‘best practices’ in your own organisation and others.
  • It also provides an objective assessment of your organisation’s current situation from a third party’s view (in case of assessment was conducted through independent evaluators).
  • Furthermore, it enables you to gain public recognition and appreciation, if you are awarded to a quality or excellence award.

If you are an SME, adopting and applying business excellence models can be particularly beneficial, since it will enable you to develop systems that will support your growth and performance improvement in line with your strategies. In fact, it is more likely that you will obtain significant operational and financial benefits earlier than big organisations since you can act more quickly in your decisions and responds while running your organisation.

A possible list of benefits of Business Excellence Models to SMEs are provided below:

  • Business Excellence Models can help you understand your organisation better as a whole and allow you to make your decisions in the light of good judgement.
  • It enables you a framework to align all your systems, processes, functions and units towards your target business results.
  • It also enables all the people of your organisation to reach a common viewpoint of the current situation of your organisation and its main problems. This can be very important since only after that, people can truly come together and work towards resolving the difficulties and moving forward. 
  • It supports you to implement an extensive system for quality and improvement such as internationally accepted standards like ISO, Balance Scorecard, Lean, Kai-Zen, etc… The choice of most appropriate system is up to you.
  • It helps you to identify and work on various potential challenges for your organisation through a comprehensive perspective including but not limited to financial, legal, institutional, societal, or environmental challenges…

FOR NON -PROFIT ORGANISATIONS

Excellence and quality models like the EFQM are recognised as effective tools for performance improvement and sustainability in corporations, however non-profit organisations (NPOs/NGO’s) MAY have some difficulty in implementing these models. Actually, these models are quite relevant to non-profit organisations too cause they have similar needs as profit corporations have. For example they also have clients that they offer their products and/or services, they have to gain revenue to continue their operations, they need to promote themselves and their products/services and certainly they are concerned with the satisfaction level of all of their stakeholders.

Therefore, non-profit organisations are increasingly paying more attention to their organisational sustainability, particularly due to the need of overcoming the challenges of the current dynamic and complex operating environment that they are in. Issues such as uncertainty of government funding and the decline of private donations due to economic difficulties, coupled with growing competition within and outside the sector, render the survival of non-profit organisations to a more difficult task. Accordingly, increasing performance improvement is considered to be an effective approach to respond this though environment and they use these models as a strategy for performance improvement aiming to enhance sustainability.

Excellence or Quality Models can be used by non-profits and benefit them as self-assessment tools and as planning tools for performance improvement. The benefits of using such a model will also be quite similar with for profit organisations. The model assessments will help to understand the organisation better as a whole, learn best practices, compare results with similar other organisations; and, provide them a plan or framework to follow towards quality and improvement.

It should also be noted that integrating quality and performance improvement in a cycle of continuous improvement process, as in the excellence and quality models, can be difficult to grasp for non-profit organisations. This is partly due to their concerns on following the mission and purpose of the organisation and partly due to the terminology used in these models. For example, researches made by Kotler and Lee’s (2005) shows a strong alignment between corporate social responsibility and the non-profit organisations’ missions, especially when definition of corporate social responsibility involves organisations focus on improving the community. CSR efforts seem to be a more natural fit for non-profits than for-profits since they are more concerned with improving the community for everyone. However, when non-profits focus on CSR activities or promote their CSR activities, they can be seen as moving away from their core mission and purpose which may cause them to lose support. So, the excellence or quality models can surely benefit non-profit organisations, but perhaps better with some adaptation for their specific concerns and needs.

VEGO is your excellent partner in your excellence journey, for performance improvement and surpassing your stakeholders' needs in everything your organisation does.

For further information on BE check out the following:
Baldrige Performance Excellence Program (http://www.nist.gov/baldrige/)
European Foundation for Quality Management (EFQM) (http://www.efqm.org/en/)
Singapore Quality Award (SQA) (http://spring.gov.sg/BE)

EFQM AND BALANCED SCORECARD (BSC)

We know that there are several business excellence models and other relevant management frameworks which are developed in different parts of the world, targeting performance improvement, quality and excellence in both management and operations. Among them Balanced Scorecard (BSC) and European Foundation for Quality Management’s (EFQM) Excellence Model, which are both widely known and adopted, are often considered to be complementary ways of monitoring, measuring and improving performance. And it is often suggested that they work together quite well to bring added value to an organisation.

First of all, they have significant similarities. Both are established above a solid commitment (initially the management’s ownership and commitment to follow) on performance improvement, each follows a structured process and are both measurement based. They also both seem to seek an invisible cycle of planning, designing, implementing, reviewing, learning and using feedbacks for improvement. Furthermore, they are extensively used not only in business organisations but also in various governmental institutions and non-profit organisations.

The success and continuity of both approaches application within an organisation highly depends on the management’s commitment and their success in spreading and making the people of the organisation adopt the frameworks.

HOW BALANCED SCORECARD AND EFQM CAN USED SIMULTANEOUSLY AS AN INTEGRAL MODEL?

Balanced Scorecard methodology is a strategic planning and strategic performance management system that focus on aligning the activities of the organisation to its vision and strategy, improving internal and external communications and monitoring the performance in accordance with strategic goals. The methodology has been developed at Harvard Business school by Dr. Robert Kaplan and David Norton as a “performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organisational performance”. (www.balancedscorecard.org)

Adopting the Balanced Scorecard enables organisations to:

  • render their organisational strategy into focused, operational, and measurable terms
  • implement actions in accordance with strategic planning
  • focus the time and the efforts of the management team on key topics and issues.  
  • create a direct link between individual’s, units’/teams’ and the overall organisations’ goals in order to create ensure strategic continuity.
  • let people and units/teams know how their performance affect and contribute to the overall organisational performance
  • ensure that the organisational strategy and strategic priorities can effectively be communicated throughout the organisation
  • better analyse and make resource allocation and investment trade-offs
  • ensure clear accountability for results by assigning owners for metric
  • continuously assess and learn from previous performance therefore be able to adjust strategy, if needed

On the other hand, EFQM Excellence Model provides a holistic approach within an organisation and used as a diagnostic tool to identify the current situation of the organisation and its strengths and areas of improvement. It provides a self-assessment to improve organisational performance. The benefits of this all-encompassing approach include the creation of enthusiasm within the organisation at all levels to improve performance, the provision of a mechanism to share good practice internally and externally as well as the provision of a framework for continuously learning and improving the performance. (Gaelle Lamotte & Geoff Carter 2000)

Although both EFQM Model and BSC seem to have similarities, they also have different strength areas which makes complementarily adopting and applying two approaches together quite logical and beneficial.

For example when the EFQM Model looks at how well an organisation manages its strategic planning, it seeks to answer questions like if the strategic planning process is formally established, if it is regularly implemented and reviewed or, if the contribution of different levels of the organisation is ensured during the process. But, the Model will not focus on the quality of the strategy alone. When viewed from the BSC side, correlatively, we will see that the BSC focuses on the soundness and the feasibility of the strategy and monitors the performance toward achieving strategy, not the quality of the strategic planning process or how to improve it. (www.hrmars.com)


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