Lothian Bus: Business Excellence Analysis Using the EFQM Model

This report evaluates the effectiveness and efficiency of Lothian Bus's business processes using the EFQM model, focusing on partnerships, resources, processes, products, and services. It identifies areas for improvement, such as diversifying the supply chain and benchmarking knowledge man...Read More

Running head: BUILDING HIGH PERFORMANCE ORGANIZATIONS
Building high performance organizations
Name of the student
Name of the university
Author note

1BUILDING HIGH PERFORMANCE ORGANIZATIONS
Executive summary
The aim of this report is to discuss about the effectiveness and efficiency of the business
processes of Lothian Bus from the perspective of EFQM model. This report discussed about the
major two criterion of this model and evaluated the performance of Lothian bus. It is identified
that there are number of areas of improvement present for them. It is recommended in this report
that they should initiate fast supply chain strategy for achieving business excellence. Moreover,
Quality Scotland should initiate relationship marketing to promote the EFQM model to the
tourism firms.

2BUILDING HIGH PERFORMANCE ORGANIZATIONS
Table of Contents
Introduction......................................................................................................................................3
Partnerships and resources...............................................................................................................4
Building sustainable relationships...................................................................................................4
Sustainable development of the assets.........................................................................................5
Information and knowledge management...................................................................................6
Processes, products and services.....................................................................................................6
Delivering processes....................................................................................................................7
Product and service developments...............................................................................................7
Customer relationships................................................................................................................8
Recommended supply chain management strategy.........................................................................9
Recommended marketing strategy................................................................................................10
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

3BUILDING HIGH PERFORMANCE ORGANIZATIONS
Introduction
The current business scenario demands high level of effectiveness and efficiency of the
business organizations in operating in the market. This is due to the reason that effectiveness will
help the business organizations in gaining the sustainability in the long term and dealing with the
high level of competition in the market. In addition, it is also important for the contemporary
business organizations in achieve the business excellence in their business processes in order to
have the long term sustainability (Calvo-Mora, Navarro-Garcia & Perianez-Cristobal, 2015). In
this case, the EFQM business excellence model will be the most effective way of determining the
factors of achieving the business excellence. In the current business state of affairs, this model is
widely used due to the fact that any types of firms ranging from small and medium size
organizations to larger scale organizations can use this model in accordance to their business
situations (Calvo-Mora et al., 2015).
Tourism sector of Scotland is one of the major booming industries and is estimated that it
would become one of the highest contributors in the national GDP. It is also being estimated that
with the development in the economy, the purchasing power of the customers is increasing and
thus the average spending per tourist will increase in the future. However, it should also be noted
that companies operating in this sector should have to be sustainable enough to tap this growing
opportunities. Lothian bus is the largest municipal bus company in the United Kingdom. They
were founded in 1919 and till then serving to large areas across the country (Lothianbuses.com,
2018). In addition, it is also identified that tourist is one of major portion of revenue generation
for Lothian bus due to the reason that fact they serve as the primary means of transportation for
major parts of the tourists.

4BUILDING HIGH PERFORMANCE ORGANIZATIONS
This report will critically analyze the effectiveness of Lothian bus with the help of the
EFQM business excellence model. Only two criterion including partnerships and resources and
processes and services will be considered for analysis. Based on the analysis, a supply chain
management strategy will be recommended along with a marketing strategy for Quality Scotland
for promoting the EFQM model.
Partnerships and resources
This criterion is one of the major enablers in the EFQM model, which states that
effectiveness of the partnerships with the suppliers and others will determine the long term
sustainability. In addition, the more will be the access to the available resources, the more will be
the effectiveness in initiating new processes in the business operation. In this case, the extent of
effective relationship between the Lothian bus and their suppliers is the major determining factor
(Uygur & Sumerli, 2013). The following section will further discuss about the effectiveness of
the relationships between the entities.
Building sustainable relationships
The major suppliers for Lothian bus are the bus manufacturers and travel agencies. It is
reported that Lothian bus is having dedicated supplier relationship management mechanism for
dealing with their partners. For instance, the buses being inducted by them are being designed in
accordance to the specifications set by Lothian bus. This can be made successful only by having
effective and proper connections between the bus manufacturers and Lothian bus. It is also
identified and Volvo is the single largest suppliers for Lothian bus in terms of inventories with
having minimum presence of some other brands (Gomez, Martinez Costa & Martinez Lorente,
2017). This is helping in having positive relationship between them due to the reason that from

5BUILDING HIGH PERFORMANCE ORGANIZATIONS
the initial stage of operation, relying on a single manufacturer helped in developing the
relationship and in the current time, this is helping in having inventories in accordance to the
specific needs of Lothian bus.
On the other hand, the major advantage that is being gained by Lothian bus is having
lower maintenance cost for managing single type of inventories. However, it should also be
noted that even though EFQM model is promoting this positive factor for Lothian bus but
absence of various suppliers in the supply chain is also creating gap. This is due to the fact that
depending only on one supplier will reduce the variations in the products and supply chain
process will more limited and restricted (Vukomanovic, Radujkovic & Nahod, 2014). Another
major strategy being initiated by Lothian bus in managing the relationship with the partners is
co-branding. It is reported that Lothian bus is having their strategic relationships with Edinburg
Zoo for two years deal under which, the buses are being given animal themed livery. This is
helping in having value for the both the entities along with having more effective relationships.
Sustainable development of the assets
Some of the major assets for Lothian bus are the buses, service centers and office
premises. It is identified that Lothian bus is initiated a number of strategies to reduce their carbon
footprint from their business operation. One of the major initiatives is the induction of the
electric buses in the fleet. In addition, the depots are being given makeover in terms of more
sustainable consumption (Favaretti et al., 2015). Maintenance of their fleet is more sustainable
due to the reason that single type of inventory is present. Thus, the wastage of resources is less
for Lothian bus. It is also reported that preservation strategy is also being followed by Lothian

6BUILDING HIGH PERFORMANCE ORGANIZATIONS
bus for sustainable disposal system. Many of their buses were preserved in different manner after
the completion of their life term. This is helping in managing the disposal system responsively.
Information and knowledge management
From the information available, it is identified that knowledge management and he flow
of information is effective in the internal process of Lothian bus. This is due to the reason that
employees especially the drivers are being used only for the transportation purposes but also for
garnering feedback from the customers. This is beneficial in the decision making process
because, drivers are major touch points with the passengers and they will have the most authentic
feedback about the trend of the market and preferences of the customers (Dahlgaard et al., 2013).
The major evidence of effective process of knowledge and information management is the
evolution of the service approach and quality with time. Introduction of the night bus is also
being done based on the feedback of the passengers. However, it is also being recommended that
Lothian bus should benchmark the market leader in terms of knowledge management. This is
due to the reason that Lothian bus is not the front runner in the sector and some of their major
competitors are utilizing the knowledge and information in more effective manner (Zarraga-
Rodriguez & Alvarez, 2013).
Processes, products and services
In the current business scenario, it is important for the business organizations to have the
distinctiveness in their product strategy in order to stay ahead in the competition. This is not
limited to the product strategy only but also the service delivery quality. According to the EFQM
model, this criterion is dedicated to the determination of the effectiveness of service processes in
achieving the desired outcome (Doeleman, Ten Have & Ahaus, 2014). This includes effective

7BUILDING HIGH PERFORMANCE ORGANIZATIONS
process, product development and customer relationships. The following sections will further
analysis these factors from the perspective of Lothian bus.
Delivering processes
Delivering process of Lothian bus is having different mediums, which is further helping
in catering customers from different perspectives. The core service of Lothian bus is offering
transportation mediums for the passengers in different routes. The tickets for the routes can be
availed from travel sites, apps and directly from the bus drivers. It is reported in the official
website of Lothian bus that passengers can have urgent tickets directly from the bus drivers as
well. In addition, the core service of Lothian bus is being further classified based on different
utilities such as night travel bus and airport services (Cierna & Sujova, 2015). Each of the
delivering processes is being designed in accordance to the specific preferences. In addition, it is
also being identified that all the internal stakeholders are being involved in delivery process in
order to have the maximum alignment with the customer trend and preference patterns.
Product and service developments
Product and service development is another major factor in gaining competitiveness in
the current business state of affairs. This is due to the reason that customer taste and preference
pattern is changing rapidly and it is important for the businesses to cope up with this change. In
the case of Lothian bus, development of the products and services is effective (Bolboli & Reiche,
2015). It is identified that in terms of inventories, buses are being changed periodically such as
majority of the existing buses are being changed by Volvo B5TLs and Wright StreetAirs. This
can be termed as innovative development due to the reason that electric power trains are the
future of transportation and this will also help Lothian bus in reducing their carbon footprint. In

8BUILDING HIGH PERFORMANCE ORGANIZATIONS
addition, it is also being reported that livery of the buses of Lothian bus is being changed after
every certain period. This helped them to stay updated and fresh among the customers.
In terms of the service also, development is evident. For instance, some of the existing
Plaxton President Dennis Trident 2s buses are being converted in open top in order to provide
better experience to the passengers especially the tourists. In the recent time, all of their buses are
being fitted with CCTV cameras and GPS tracking system. Low floor buses are also being
introduced for better customer convenience for the disable passengers. This is done for ensuring
the safety of the passengers. They are also having the provision for live tracking of the buses at
any point of time (Akyuz, 2015). It is being aimed by Lothian bus that by 2020, all of their buses
will be completely electrified and will have zero emission. However, on the other hand, it is also
identified that the service of Lothian bus is still limited in the Edinburg location and not beyond
that. This should be further expanded to have larger customer base and revenue.
Customer relationships
It is identified that Lothian bus is having dedicated customer management and grievance
system in place. Customers are having the provision of mailing, chatting and calling the
representatives for their queries. It helps in effective resolution of the issues with the customers.
In addition, after the completion of each ride, passengers are encouraged for feedback, which
further helps in identifying the gap areas. It can be concluded that the customer relationship
management system of Lothian bus is effective due to the reason that retention ratio of
passengers for them is high, which denotes the higher level of satisfaction among the customers
(Estampe et al., 2013). Lothian bus is also present in the social media platforms, which is further

9BUILDING HIGH PERFORMANCE ORGANIZATIONS
helping them in communicating with the customers along with identifying the major trends in the
market.
Recommended supply chain management strategy
It is recommended that fast supply chain process should be followed by Lothian bus for
gaining business excellence. This is due to the reason that with the help of the fast supply chain
strategy, Lothian bus will be able to offer services in accordance to the current trends in the
market and time consumption between initiating idea and service delivery will be less (Turker &
Altuntas, 2014). This is recommended due to the fact that trend and pattern of public
transportation is changing rapidly and with the help of the fast supply chain strategy, Lothian bus
will be able to properly and accurately forecast the market trend and offer the services
accordingly in minimum cost. Thus, service process for Lothian bus will be well ahead of the
competition and excellence can be achieved.
This strategy will involve all the internal stakeholders in the process in order to have the
maximum effectiveness. The forecasted trend should be passed on to the suppliers to have the
products accordingly. For instance, popularity of the buses running on alternate fuels or the buses
with having noise cancellation interiors should be transferred to the manufacturers in order to
have the exact inventories (Estampe et al., 2013). These inventories will help Lothian bus to be
the early mover in the market. However, it should also be noted that there are few steps that
should be considered by Lothian bus in order to have the proper delivery approach of the
recommended strategy. Lothian bus should have proper channel of flow of information from the
drivers to the suppliers. This is due to the reason that feedback gained by the drivers will help in
identifying the expectations of the customers and future products should be made accordingly. In

10BUILDING HIGH PERFORMANCE ORGANIZATIONS
addition, Lothian bus should also have representation of the suppliers in the decision making
process in order to have different complementary elements aligned with the new inventories.
Training and development programs should also be updated to complement the new inventories
and match the current expectations of the customers.
It is also recommended that Lothian bus should follow continuous process of generating
feedback from the passengers in order to have the update about their new approaches. It should
also be noted that if the revenue is getting increased along with more retention of the existing
customers (Blome, Schoenherr & Rexhausen, 2013). This will prove the effectiveness of the new
supply chain strategy. In addition, pilot project should be initiated prior to the commercialization
of the strategy. Pilot project will help to identify the gaps and areas of improvement, which can
be mitigated. Moreover, it should also be noted that the forecasting process is effective and
accurate (Shen, 2014).
Recommended marketing strategy
From the perspective of Quality Scotland, it is recommended that they should initiate
relationship marketing strategy in promoting the concept of EFQM to the tourism sector. This is
due to the reason that it is considered that the solution should be low cost and relationship
marketing does not involve any expensive mediums, which will help Quality Scotland in having
a cost effective solution (Shahin Sharifi & Rahim Esfidani, 2014). With the help of the
relationship marketing, Quality Scotland will be able to have the proper connection with the
entities in the sector and can be able to determine the specific situations for each one of them.
This will enable Quality Scotland to suggest the exact form of the model to them. Thus, the
promotion will be more effective and in accordance to the different needs of the entities in the

11BUILDING HIGH PERFORMANCE ORGANIZATIONS
sector. The strategy for Quality Scotland will be to assist the firms in overcoming their business
issues and determine the areas where EFQM model will be effective. On the basis of these gap
areas, this model should be pitched to them.
It is also recommended that in order to implement this strategy, Quality Scotland should
have dedicated client cell, which will assist the firms in their issues. In addition, the internal
stakeholders of Quality Scotland should be trained enough regarding the concept of EFQM,
which will enable them to promote properly to the firms (Sarmento, Simoes & Farhangmehr,
2015). Inclusion rate of the new firms in this concept should be determined to identify the
success of the strategy. In addition, they should initiate changes and improvement in the EFQM
concept to cope up with the change in the business scenario.
Conclusion
Thus it can be concluded that in terms of EFQM model, Lothian Bus is having a few
negative as well as positive points. These factors are being identified in this report from the
perspective of two criterion of EFQM model. In addition, it is also identified that Lothian Bus is
effective in terms of new service development. This report recommended that they should have
fast supply chain strategy to achieve business excellence and Quality Scotland should follow
relationship marketing for promoting this model.

12BUILDING HIGH PERFORMANCE ORGANIZATIONS
Reference
Akyuz, G. A. (2015). Quality excellence in complex supply networks: EFQM excellence model
reconsidered. Total Quality Management & Business Excellence, 26(11-12), 1282-1297.
Blome, C., Schoenherr, T., & Rexhausen, D. (2013). Antecedents and enablers of supply chain
agility and its effect on performance: a dynamic capabilities perspective. International
Journal of Production Research, 51(4), 1295-1318.
Bolboli, S. A., & Reiche, M. (2015). Introducing a concept for efficient design of EFQM
excellence model. The TQM Journal, 27(4), 382-396.
Calvo-Mora, A., Navarro-García, A., & Periañez-Cristobal, R. (2015). Project to improve
knowledge management and key business results through the EFQM excellence model.
International Journal of Project Management, 33(8), 1638-1651.
Calvo-Mora, A., Picón-Berjoyo, A., Ruiz-Moreno, C., & Cauzo-Bottala, L. (2015). Contextual
and mediation analysis between TQM critical factors and organisational results in the
EFQM Excellence Model framework. International Journal of Production Research,
53(7), 2186-2201.
Cierna, H. E. L. E. N. A., & Sujova, E. R. I. K. A. (2015). Parallels between corporate social
responsibility and the EFQM excellence model. MM Science Journal, 10(2015), 670-676.
Dahlgaard, J. J., Chen, C. K., Jang, J. Y., Banegas, L. A., & Dahlgaard-Park, S. M. (2013).
Business excellence models: Limitations, reflections and further development. Total
Quality Management & Business Excellence, 24(5-6), 519-538.

13BUILDING HIGH PERFORMANCE ORGANIZATIONS
Doeleman, H. J., Ten Have, S., & Ahaus, C. T. B. (2014). Empirical evidence on applying the
European Foundation for Quality Management Excellence Model, a literature review.
Total Quality Management & Business Excellence, 25(5-6), 439-460.
Estampe, D., Lamouri, S., Paris, J. L., & Brahim-Djelloul, S. (2013). A framework for analysing
supply chain performance evaluation models. International Journal of Production
Economics, 142(2), 247-258.
Favaretti, C., De Pieri, P., Torri, E., Guarrera, G., Fontana, F., Debiasi, F., & Flor, L. (2015). An
EFQM excellence model for integrated healthcare governance. International journal of
health care quality assurance, 28(2), 156-172.
Gómez, J. G., Martínez Costa, M., & Martínez Lorente, Á. R. (2017). EFQM Excellence Model
and TQM: an empirical comparison. Total Quality Management & Business Excellence,
28(1-2), 88-103.
Lothianbuses.com. (2018). About us – Lothian Buses. Retrieved from
https://www.lothianbuses.com/about-us/
Sarmento, M., Simões, C., & Farhangmehr, M. (2015). Applying a relationship marketing
perspective to B2B trade fairs: The role of socialization episodes. Industrial marketing
management, 44, 131-141.
Shahin Sharifi, S., & Rahim Esfidani, M. (2014). The impacts of relationship marketing on
cognitive dissonance, satisfaction, and loyalty: the mediating role of trust and cognitive
dissonance. International Journal of Retail & Distribution Management, 42(6), 553-575.

14BUILDING HIGH PERFORMANCE ORGANIZATIONS
Shen, B. (2014). Sustainable fashion supply chain: Lessons from H&M. Sustainability, 6(9),
6236-6249.
Turker, D., & Altuntas, C. (2014). Sustainable supply chain management in the fast fashion
industry: An analysis of corporate reports. European Management Journal, 32(5), 837-
849.
Uygur, A., & Sümerli, S. (2013). EFQM excellence model. International Review of Management
and Business Research, 2(4), 980.
Vukomanovic, M., Radujkovic, M., & Nahod, M. M. (2014). EFQM excellence model as the
TQM model of the construction industry of southeastern Europe. Journal of Civil
Engineering and Management, 20(1), 70-81.
Zárraga-Rodríguez, M., & Alvarez, M. J. (2013). Exploring the links between information
capability and the EFQM business excellence model: the case of Basque Country Quality
award winners. Total Quality Management & Business Excellence, 24(5-6), 539-560.