Building and Marketing High Performing Organizations: Applying the EFQM Model of Excellence on Boeing

Introduction

Introducing continuous improvement that is aimed at enabling and sustaining business excellence has become a challenge for organizations. While every company wants to perform better in the market, there is a clear indication that quality management is the way to go for many businesses. Organizations have been faced with a different tool that can be used to provide a crucial decision in the process of improving performances or the organization at large. For most of the tools, they lack an application of the flexible tools, which include social benefits, public feedback, and organization culture. The introduction of a link between the technical and social dimension is one of the main issues that make EFQM be a prime tool in the assessment and evaluation of a company regarding the aspect of quality. An outstanding feature of the EFQM model is the holistic perspective used to introduce corporate performance and the structural management framework, which concentrates on continuous improvement in an organization. The EFQM model presents a management framework for the organization and has continued to be used around the globe. The paper will concentrate on the use of the EFQM model of excellence in Boeing.

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EFQM model

EFQM is paramount in mapping the path for excellence in business. It helps achieve the best performances that exceed the expectation of the stakeholders. FQM Excellence model has been known to assist the organization in integrating planned and existing initiatives while at the same time removing gaps (Al-Tabbaa, Gadd, & Ankrah, 2013). The model provides a critical structure that is to be used by the management system in an organization. The model has also been known to facilitate the communication of ideas effectively within the external and internal environments of business. The main advantage is the assessment of an organization path to excellence, which introduces an understanding of the key strengths and weaknesses (Andjelkovic & Dahlgaard, 2013).

EFQM model has been founded to recognize and perpetuate approaches that bring sustainable excellence as well as guidance to business on achieving success. There are three integrated components in the model and comprise of: The Fundamental Concept of Excellence, The EFQM Excellence Model, and The Model Criteria (EFQM organization 2013). The concepts and theories that are used by the model agree that the management of quality presents a way of managing activities, which will help in the improvement of efficiency, competitive advantage, and effectiveness. Nine criteria are used to realize the aim of business excellence in EFQM. Five of them have been classified as enablers while the other four are indicated to be results (Dahlgaard et al., 2013).

Applying EFQM at Boeing

Boeing is one of the leading companies in the aircraft manufacturing industry. The company has maintained a leading position in the industry through effective coordination and business excellence in the departments. Founded by William Boeing, the company has been ranked as one of the best globally (Blake & Eash, 2003). Applying the EFQM model in Boeing will help in maintaining excellence for a long-term approach in an industry where competition is not that tough. The company has five divisions, which work, towards a common goal in helping the company retain its leading presence in the aircraft industry. Application of the EFQM model to the company will illuminate on the strengths and the gaps the company will have to improve to achieve sustainable business excellence in the market. As a leading company, Boeing possesses the power of succeeding through the talent in their workforce (Boeing History, 2019). The company promotes the creation of an organizational culture that supports empowerment and achievement of organization goals. They can attract the best engineers as they embrace diversity and define the competencies required to be aligned in the company mission, strategic goals, and vision.

Boeing has also been excellent in harnessing innovation and creativity. As the EFQM model indicates, leading organizations pride themselves in their ability to increase the performance levels and value because of system innovation and continuous improvement. Boeing is not left behind and is at the forefront in harnessing the creativity of their stakeholders. The company has continued to manage innovations in its products and processes, which sets clear goals and objectives and helps them to take opportunities that are available in the market. Another strength for the company comes from customer satisfaction, which is set at a higher level (Boeing History, 2019). Boeing quality management concentrates on customer satisfaction, which has helped the company in attaining business excellence. Boeing ensures that they can manufacture products that will add value to the customers and at the same time, the company employs measures to monitor their experiences. The company has instituted the benchmarking practices, which help them in identifying practices that will promote business excellence (Escrig & de Menezes, 2015). The benchmarking proves to be a strength as Boeing can identify the management practices and leadership strategies that are to be used to ensure quality management will result in excellence.

EFQM has succeeded in highlighting the strengths possesses by Boeing towards quality management for business excellence. However, the model pinpoints few weaknesses, which need to be addressed to ensure continued improvement for Boeing (Metaxas & Koulouriotis, 2014). First, the company's investment in the research and development sector is at a low capacity. In terms of innovation, the industry players have left behind the quality of their products. Boeing has to adopt strategies that will help in the quality management when it comes to research and development. Another weakness is that the company has been left behind when it comes to management of change. EFQM calls for an enhanced capability in an organization if a company is to achieve business excellence through quality management. When it comes to organization capability, Boeing lacks an efficient and effective value chain that can ensure they can meet the target value. Financial planning is also abysmal as the day-to-day inventories are higher as the company lacks effective demand forecasting systems.

Criterion 4 - Partnerships & Resources

EFQM is clear that for an organization to attain excellence, they have to manage and plan the external partnerships, internal resources, and suppliers to support policies and strategies and effectiveness. Companies will have to employ supplier relationship management (SRM) to ensure a smooth relationship with the external environment (Ruiz-Carrillo & Fernandez-Ortiz, 2005). SRM introduces strategic planning and the management of all interactions with organizations on third party level involved in the supply of services and goods to the company. Boeing has created an enabling environment to carry out SRM with a view of maximizing the value included in the partnerships and suppliers (Gomez, Costa, & Martinez, 2015). The management of the partnership by Boeing necessitates a consistent approach that sets out defined behaviors, which are meant to foster trust in the end. The effectiveness of the supplier and partnership management has always required the institutionalization of new ways of collaboration while at the same time dismantling the practices and policies that seem to impede and inhibit collaboration. The inhibitors work against Boing development by limiting the value potential that can be achieved from the existing relationships. Boeing has collaborated with different governments for the development of products that suit their security systems (Porter & Tanner, 2012). The partnerships have given the company a global reach, which makes them the best in the aerospace industry.

The management of suppliers entails a reciprocal innovation in the policies and processes at the suppliers. The world seems to be changing rapidly, and Boeing embraces the change to ensure they have a healthy relationship with their partners. The interdependency existing between Boeing and communities, economies, countries and organizations around the globe continues to become complex and increase in strength (Escrig & de Menezes, 2016). For Boeing to ensure they have the best relationship and gain a competitive edge, they are faced with the challenge of continuous improvement and innovation. Boeing will have to manage effectively, understand and balance the expectations and needs of the stakeholders and partners.

Boeing is very efficient when it comes to the management of resources. They have always adhered to sustainable development when it comes to the management of resources. The company has a presence in over 60 countries and embraces diversity in its workforce. Talent has become a crucial resource for the company. Boeing can harness the ideas and expertise from the key partners and suppliers and translate it into service and product offering to their customers. All the efforts of partnership and resource management are directed towards achieving a competitive advantage in the industry (Evans, Ford, Masterson & Hertz, 2012). Boeing is consistent in monitoring and identification of areas of improvement in performance and resource management. They have introduced a mixture of qualitative and quantitative methods to indicate the perception of their relationship quality with their partners. The key performance indicators (KPI) implemented are shared and reviewed jointly with supplier and customers stating Boeing values a positive collaboration with their partners (EFQM organization, 2013). The KPI offer insight into the areas of improvements in the management of the sustainable relationship with the partners of Boeing.

Boeing is known to segment their suppliers and partners concerning their strategy and adopt the right processes and policies to build a sustainable relationship. The strategy also aims at maintaining effectiveness in working together and enhancing mutual trust, openness, and respect. Boeing continues to use financial processes,...