Application of EFQM in Service Management

This paper explores the application of the European Foundation for Quality Management (EFQM) in service management, focusing on the key concepts of the framework and its benefits. It analyzes the successful implementation of EFQM in organizations like Intercontinental Hotel Group, Titanic Belfast, Mandarin Oriental hotel group, and Schurter Group. The paper also discusses the application of EFQM in Squire Hotel Group, including self-assessment, identification of opportunities, service quality improvement, and employee training. It concludes with recommendations for future EFQM use.

Running page: Marketing 1
Service Marketing
Student’s Name
Professor
Course
Date

Marketing 2
Executive summary
The paper explores the European Foundation for Quality Management (EFQM) as a
critical quality management framework for service management. The first aspect of the
management quality that the paper explores in detail the key concepts of the framework that
enable the model to work in business. In essence, the components of the framework such as core
values, criteria and radar logic of the framework are analyzed in this report. The background of
Squire Hotel Group is part of the analysis as to the need for the adoption of the model. Various
organizations that have successfully used the EFQM forms core of the analysis to present success
factors of the model. Actual areas of the applications of EFQM in Squire Hotel Group include
self-assessment, identification of areas of improvement, opportunities for improvement and
training of employees in various quality management aspects are discussed in the paper. The
paper also presents the limitations of the EFQM when used in business for total quality
management of service delivery that may also affect the implementation of the model in the
hotel. The paper concludes citing the importance of the EFQM in organizational service quality
management and future application. Recommendations such as resource need, adoption and
implementation and the technical need of the model are also key for future EFQM uses.

Marketing 3
Table of Contents
1. Background information of the European Foundation for Quality Management (EFQM)...................3
2. The framework works consist of the following components................................................................3
A. Eight core values.............................................................................................................................4
B. Nine criteria.....................................................................................................................................5
C. Radar logic......................................................................................................................................6
3. Organizations using EFQM and are successful....................................................................................6
3.1 Intercontinental Hotel Group.............................................................................................................7
3.2 Titanic Belfast...................................................................................................................................7
3.3 Mandarin Oriental hotel group...........................................................................................................8
3.4 Schurter Group..................................................................................................................................8
4. The Application of the framework in Squire Hotel Group...................................................................9
4.1 Self-assessment of customer service and activities............................................................................9
4.2 Identification of opportunities..........................................................................................................10
4.3 Service quality improvement...........................................................................................................11
4.4 Training applications of EFQM.......................................................................................................12
5. The output formats.............................................................................................................................12
6. Benefits of using the EFQM in Squire Hotel Group..........................................................................13
7. Limitation of the framework..............................................................................................................13
8. Conclusion.........................................................................................................................................14
9. Recommendations.............................................................................................................................14

Marketing 4
1. Background information of the European Foundation for
Quality Management (EFQM)
The European Foundation for Quality Management (EFQM) is an applied business model
for excellence management of service quality with the organization. The EFQM was designed to
help organizations analyses internal and external activities for identification of opportunities and
threats for the purpose of improving the quality of services. Since the inception, the model and
non-profit organization have been adopted and used by many organizations across Europe and
globally. Currently, it estimated that there are thousands of organizations that are using the
EFQM model for excellent quality service management. This paper analyses the application of
the European Foundation for Quality Management (EFQM) for the possibility of adoption and
implementation by Squire Hotel Group (EFQM 2012).
2. The framework works consist of the following components
European Foundation for Quality Management (EFQM) has various components that make
the model useful for self-assessment and implementation in an organization. The model has three
main components and these include core value keys, criteria, and radar logics.
A. Eight core values
The framework consists of the eight core values or key that include
1. Adding value to customers

Marketing 5
The framework adds value to customers through analyzing the need, expectation and
future areas of the improvement of customers served by the organization.
2. Creating a sustainable future
The model assists the company that applies this model to manage its services hence the
company is able to focus on future sustainable performance through various societal areas. The
model enhances the organization's ability to promote favorable economic, social and
environmental condition while operating in the service industry (Johnston, Clark & Shulver
2012).
3. Developing organization capability
The quality management framework increases the organization’s service provision
capabilities in the industry since the framework increases the competency and competitiveness of
the organization.
4. Harnessing creativity and innovation
The organizational analysis of the service provider framework is important for
identification of areas of improvement that are essential to the business. This, therefore, increases
the creativity and innovation of the organization.
5. Leading with vision, inspiration, and integrity
The model is a quality management tool that effectively shapes the future of the
organization and thus increasing the strategic leadership management of the organization.
6. Managing with agility

Marketing 6
The analytic nature of the quality management model, the company can use the model to
manage its opportunity and threat to effective service provision.
7. Succeeding through the talent of people
Identification of opportunities and gap within the organization using the EFQM model
increase the ability of the people within the organization to achieve their goals.
8. Sustaining outstanding result
The overall result of the model is outstanding and useful by various stakeholders in the
environment where the organization.
Figure 1: Core vale of EFQM

Marketing 7
B. Nine criteria
These criteria are grouped into criteria, sub-criteria and areas aspects. Apart from the core
value of the EFQM framework, the model also has two main criteria and these are enablers and
results. Firstly, the enablers have sub-criteria that are mainly operational functions of the
organization and how these operations are carried out. Enablers sub-criteria are leadership and
processes and can also group further into three and these include the leadership, strategic
direction, and processes (Karpen, Bove & Lukas 2012). Strategic direction involves using
people, policies and strategy, and partnership and resources. Secondly, results include various
things that the organization achieves. The result of the organization can be categories into two
and these include result from people, result from customer and result from the society in general.
The final aspect of the result involves the overall result of the organization based on the key
performance results (Boulter, Bendell & Dahlgard 2013).
Figure 2: Nine criteria

Marketing 8
C. Radar logic
Radar Logic is the last component of the EFQM framework and involves continuous
improvement cycle that the model uses. The radar logic consists of four aspects and these include
determining the Result, Approaches, Deploy and Assess and Refine. Firstly, the model
determines the result as part of the strategy that the model uses. Secondly, the framework also
plans various sets of approaches to deliver the result to the organization using the model.
Thirdly, deployment of various approaches aims at delivering the result is another improvement
framework. Lastly, assessing the approaches used in order to refine these approaches based on
the analysis of the result from the organization (Business Performance Improvement Resource
2018).
3. Organizations using EFQM and are successful
There are some service organizations that have used the model to manage the service
quality of their organizations. These organizations are spread across all sectors of the service
provider and are of both national and international level. Many organizations that have used the
model are majorly larger though there is a medium and small organization that can also use the
model.
3.1 Intercontinental Hotel Group
The hotel used the EFQM quality management model for testing the quality of their
service as a quality improvement strategy. The areas where the organization explored the quality
framework included competencies, capabilities, competitive advantage and. As a result of the
application of the EFQM in service quality management, the hotel has emerged top in terms of
quality. One of the awards that the IHG has earned is the 2019 best quality award. The company

Marketing 9
has successfully used the model or framework to manage its business increasing the company's
competency in hotel service management internationally. In addition, the company has also
emerged as one of the organizations with a competitive advantage over the other hospitality
companies due to its service quality across all areas of business (Lovelock & Jochen 2011).
3.2 Titanic Belfast
Titanic Belfast has been awarded by the European Foundation for Quality Management
for performing in service management. The company was awarded for performing in procedures
and practice in innovation, continuous development, and policies that help in maintaining quality
management. Furthermore, the company was also successful in using the EFQM in ensuring that
the company sticks to its vision. Therefore, the company application of the EFQM has
contributed to the company's service management emerging one of the best service excellence
organization in tourism and hospitality industry (Hoffman & Bateson 2017).
3.3 Mandarin Oriental hotel group
The company has been using the EFQM for management of marketing and product
promotion. The company is one of the hotel service companies that has successfully used the
excellence quality management of the business services. The company is known for excellent
marketing campaigns and promotion that has been enhanced by the adoption and implementation
of the EFQM service quality management framework (Karpen, Bove, Lukas & Zyphur 2015).
3.4 Schurter Group
Schurter Group is an electronic manufacturing company that has to maintain a good
quality of products and service for more than 20 years. Schurter Group is an international

Marketing 10
company that has used the EFQM for more than 20 years leading to success. The company has
widely used the model especially in the self-assessment area and this is also attributed to areas of
improvement that are identified by the quality management model. Firstly, the company has used
the quality management framework for many years to analyze or self-assess the business
activities leading to the identification of areas that need improvement. Secondly, the company
has also used the result for analysis derived from the model to implement the areas that need
improvement. Thirdly, the model has also enabled the company to identify areas that are
sustainable in terms of culture and strength of the organization. The overall result is the
numerous award that the company has received such as 1998, 2002 and 2014 service excellence
award in the larger company category (Chandler & Vargo 2011).
4. The Application of the framework in Squire Hotel Group
There are a number of ways through which the framework can actually help the Squire
Hotel Group in the management of the service quality. There are some important applications of
the EFQM in Squire Hotel Group include Self-assessment and improvement of service quality.
4.1 Self-assessment of customer service and activities
The applications of the EFQM model in Squire Hotel Group point to self-assessment
which uses analytic and diagnosis criteria. The EFQM provides an opportunity for the
organization to analyses various business activities such as restaurant service to customers,
management of the hotel itself and the operations that yield customers services (Liu, Xinmei &
Zizhen 2013). The model analyses all of these activities and processes to produce a result that
includes the performance of the organization, its services, quality of the services, customer
relations and opportunities to explore for improvement. In addition, the model uses data such as

Marketing 11
website visits and business process management resources to analyses various activities running
within the organization. The EFQM is also analyzing the leaders and strategy used within the
organization for future sustainable recommendations. The result of the analysis provides the
various organizational elements and their performance or result (Bettina 2017).
Figure 3: Self-assessment
4.2 Identification of opportunities
The EFQM model assists the Squire Hotel Group to identify various opportunities in
customer service provision that is necessary for improvement. After the model has analyzed the
system data the overall result identifies the opportunities for improving customer’s services.
Some of the areas that the model considers include reaching out to customers through the

Marketing 12
company's product promotion, effective bounce back site strategies, and customer service
approach. The model is known to analyses the website visits and identifies opportunities to
improve customers coming to purchase service through the website. The model also identifies
the opportunity that can be used to improve service delivery to customers. This is also important
for the identification of competitive advantage as shown in the figure below (Craig & Glascoff
2014).
Figure 4: competitive advantage
4.3 Service quality improvement
Squire Hotel Group can also use the EFQM framework to improve the quality of services
offered by the company to customers. After the identification of areas for improvement, the next
step that the model present is quality improvement approaches (Warzecha 2017). Management
has an obligation to implement the report that is generated through the EFQM for improving the
quality of services. For instance, reaching out to customers through the website requires some

Marketing 13
website or social media conversion rate. These approaches for improvement are implemented in
the business for quality excellence and improvement (Littlefield & Roberts 2012).
4.4 Training applications of EFQM
EFQM offers the Squire Hotel Group opportunity to use the model result for the training
of employees in service quality improvement culture and strategy. The model offers strategic
direction tools that are necessary for the training of employees in ways to improve the quality of
service they deliver to customers. These include strategic alignment of people within the
organization, quality improvement pathways, sustainable quality management practices and
better result achievement capabilities (Brad 2017). The EFQM model provides results that are
important for training employees in need to align various processes and leadership towards the
strategic plans of the organization. The EFQM also is a training tool for enabling people within
the hotel to understand the quality improvement approaches that are important future continuous
quality management culture. Moreover, EFQM shows various sustainable quality management
practices that portray the reputation and the image of the organization in environment and society
in general. Employees can also be trained on the competency or capability of the organization
performs in the hotel industry (Bettencourt, Lusch & Vargo 2014).
5. The output formats
There are many different file formats that are generated by the EFQM model and these
enable the user or management of the organization to deduce a conclusion. The EFQM provides
table format files that result from the analysis of various files in the system of organization. The
EFQM system is also capable to generate excel files that are similar to table format. Another

Marketing 14
type of file that is generated by the EFQM is graphs and charts showing the performance of the
organization in various activities related to service quality (Bordoloi 2014).
Figure 5: example of format
6. Benefits of using the EFQM in Squire Hotel Group
The application of the EFQM quality management framework in the organization has
some benefit to the organization that is linked to the core values of the model. Firstly, the model
helps in the management of the organization's issues across the whole business. The model
provides an avenue for the organization to manage its activities across the whole service delivery
process. Secondly, the quality management framework provides the diagnosis criteria for various
activities leading to effective planning hence good result (Hoffman, Bateson, Elliot & Birch
2010). Thirdly, the framework identifies the areas of improvement within the business through
process analysis. The areas identified are essential for future sustainable pans and improving the

Marketing 15
business service delivery process (Shanka 2012). Fourthly, the framework is able to analyses the
organization policies within a short time that include a comprehensive review of the activities in
a more flexible way. This is necessary for the strategic alignment of the organization to vision,
mission, and goals. Lastly, the model provides a framework for self-assessment and as a
benchmark for the organization itself hence improvement. The assessment is important for
identification of weaker areas and opportunities for improvement within the organization (Alan,
Zeithaml, Bitner & Dwayne 2012).
7. Limitation of the framework
There are some limitations of the framework and these include both organizational and
model weakness. Firstly, the resistance from staffs and members of the organization management
as the model increase the expectation of staffs and what service quality is expected from
(Lüftenegger, Comuzzi & Grefen 2015). Many companies are already using the organization
quality management model through some instances staffs cites high-quality expectations.
Secondly, the model is not easy for smaller organizations due to the scale of the uses. There are
many organizations that are currently using the model, especially those large and medium
organizations. Thirdly, the application of the model is not visible to customers and other
stakeholders. The application of the model though seeks to increase the quality of the service is
not visible to many different stakeholders such as customers and funders (Alter 2010).
8. Conclusion
In conclusion, the European Foundation for Quality Management (EFQM) is an
important service quality management framework or model that contributes to the success of
many business organizations offering service. The tool is important for self-assessment,

Marketing 16
improvement and training purposes. Model asses or analyses various business activities across
the organization to identify areas that need improvement upon implementation, the organization
realizes the service quality excellence. There are many different organizations that have been
successful due to the implementation of the EFQM in their business particularly to manage and
improve the quality of services. The success of these organizations has been due to the benefits
of the EFQM in their service excellence improvement. Therefore, there is a need for the Squire
Hotel Group to adopt and implement the EFQM model as recommended.
9. Recommendations
In light of the analysis of various aspects of the EFQM, there is some recommendation
that is advanced for the Squire Hotel Group to apply. Firstly, the company needs to adopt and
implement the EFQM quality management framework for future sustainable quality
management. There are many uses and advantages that warrant implementations of the EFQM
within the hotel quality management system. In addition, the EFQM has a return on investment
owing to its various uses in the service industry. Secondly, the company needs to build expertise
on the uses of the EFQM model for effective application and maintenance (Zeithaml, Bitner &
Gremler 2013). Despite the importance and uses of the model in business, there is a need for the
company to train and build an expertise base for future sustainable use and maintenance of the
EFQM model in business. One of the key challenges affecting the implementation of the EFQM
in business is the expertise and the technical knowledge that can use and interpret data from
analysis and this is needed for the hotel. Thirdly, the company needs to consider resources
necessary for the implementation of the EFQM in the organization. This can include human,
financial, technological and policies necessary for the implementation of the model. Resources
can involve the development of organizational culture and quality policies that are necessary for

Marketing 17
adoption and implementation of the EFQM model in business (Malhotra, Krajewski & Ritzman
2013).
Reference
Alan, W., Zeithaml, V., Bitner, M.J. & Dwayne D. G. (2012) Services Marketing: Integrating
Customer Focus Across the Firm, McGraw Hill.
Alter, S. (2010) Viewing systems as services: a fresh approach in the IS field. Communications
of the association for information systems, vol.26, no.1, pp 196-224.
Bettencourt, L. A., Lusch, R. F., & Vargo, S. L. (2014) A Service Lens on Value Creation.
California management review, vol.57, no.1, pp 44-66.

Marketing 18
Bettina, W. (2017) Problem with Quality Management Process orientation, controllability, and
zero-defect processes as modern myths. Walsrode. Available at
https://www.worldcat.org/oclc/992993108 [accessed on 7, April 2019]
Boulter, L., Bendell, T. & Dahlgard, J. (2013) Total quality beyond North America: a
comparative analysis of the performance of European excellence award winners, International
Journal of Operations and Production Management, vol.33, no.2, pp. 197-215.
Bordoloi, S. (2014) Service Management: Operations, Strategy, Information Technology, 8th ed.
New York: McGraw-Hill/Irwin.
Brad, F. (2017) What Is the EFQM Excellence Model and How Useful is it For You? Triaster
Blog. Available at https://blog.triaster.co.uk/blog/what-is-the-efqm-excellence-model-and-how-
useful-for-you [accessed on 7, April 2019]
Business Performance Improvement Resource (2018) BPIR.com. Available at:
http://www.bpir.com/business-excellence-bpir.com/menu-id-71/expert-opinion.html (Accessed:
7, April 7, 2019).
Chandler, J. D., & Vargo, S. L. (2011) Contextualization and value-in-context: How context
frames exchange. Marketing Theory, vol.11, no.1, pp 35-49.
Craig, M. B. & Glascoff, M. A. (2014) Process measures: a leadership tool for management, The
TQM Journal, Vol. 26 Issue: 1, pp.50-62, https://doi.org/10.1108/TQM-02-2013-0018
EFQM (2012) Revised EFQM Model to Help Increase Europe's Competitiveness.
www.prnewswire.com. Available at http://www.prnewswire.com/news-releases/revised-efqm-
model-to-help-increase-europes-competitiveness-173234131.html [accessed on 7, April 2019]

Marketing 19
Hoffman, K. D., Bateson, J.E.G., Elliot, G. & Birch, D., (2010) Service Marketing. Concepts,
Strategies and Cases, Asia-Pacific Ed., Cengage Learning, Australia, pp 171-73
Hoffman, K.D. & Bateson, J.E. G., (2017) Services Marketing: Concepts, Strategies, & Cases,
Cengage, p. 215
Johnston, R., Clark, G. & Shulver, M. (2012) Service Operations Management: Improving
Service Delivery (Fourth ed.). London, England: Pearson.
Karpen, I. O., Bove, L. L., & Lukas, B. A. (2012) Linking service-dominant logic and strategic
business practice: A conceptual model of a service-dominant orientation. Journal of Service
Research, vol.15, no.1, pp 21-38.
Karpen, I. O., Bove, L. L., Lukas, B. A., & Zyphur, M. J. (2015) Service-dominant orientation:
measurement and impact on performance outcomes. Journal of Retailing, vol.91, no.1, pp 89-
108.
Liu, X, Xinmei, L. & Zizhen, G., (2013) Emotional Labor Strategies and Service Performance:
The Mediating Role of Employee Creativity. The Journal of Applied Business Research, Vol. 29,
No. 5.
Littlefield, M. & Roberts, M. (June 2012) Enterprise Quality Management Software Best
Practices Guide. LNS Research Quality Management Systems, vol.10. Available at
http://www.lnsresearch.com/research-library/research-articles/Enterprise-Quality-Management-
Software-Best-Practices-Guide [accessed on 7, April 2019]
Lovelock, C. & Jochen W. (2011) Services Marketing: People, Technology, Strategy, 7th ed.,
Upper Saddle River, New Jersey, Prentice Hall

Marketing 20
Lüftenegger, E., Comuzzi, M., and Grefen, P. W. P. J. (2015). Designing a tool for service-
dominant strategies using action design research. Service Business, vol.1, pp 29.
doi:10.1007/s11628-015-0297-7
Malhotra, M. K., Krajewski, L. J. & Ritzman, L. P. (2013) Operations management: processes
and supply chains (10th ed.). Upper Saddle River, N.J.: Pearson.
Shanka, M.S. (2012) Measuring Service Quality in Ethiopian Airlines. Journal of Educational
and Social Research. Vol.2, no.9, pp 173–180. doi:10.5901/jesr.2012.v2n9p173
Warzecha, B. (2017) The Problem with Quality Management: Process orientation,
controllability, and zero-defect processes as modern myths (Philosophy in Practice),
Zeithaml, V. Bitner, M.J. & Gremler, D.D., (2013) Services Marketing: Integrating Customer
Focus Across the Firm, 6th ed, New York: McGraw-Hill.

Marketing 21