The strategy formation process in the EFQM Excellence Model: a critical review and new perspectives

Abstract

The adoption of an integrative strategy formation process becomes a way of developing a strategic capability that contributes to generating positive results and sustainable competitive advantages. In today's environments, many companies are also using the EFQM Excellence Model (EEM) to try to develop such a strategic capability. This paper presents an exhaustive review of the literature on the strategic process debate and on the strategic capability of the EEM. As a result, we offer to practitioners a conceptual framework which shows the EEM as a useful driver to facilitate the development of an integrative strategy formation process, and we propose a set of dimensions and variables (the levers) through which such a development may take place. In addition, we present to academicians a detailed research agenda by establishing some exploratory questions, theoretical implications and new challenges to go into the knowledge of this area in greater depth.

Keywords:

• integrative strategic process
• strategy formation process
• business excellence
• EFQM model

Acknowledgements

This manuscript has been developed in the framework of the research project GVPRE/2008/385, funded by the Education Department of the Valencian Government. We also want to acknowledge the effort and comments of Professor Oswald Jones who acted as a peer reviewer, at the University of Liverpool Management School. His feedback has strongly contributed to improve the quality and accuracy of this paper.

Notes

As an illustration, Ericsson España S.A. modified not only the periodicity of self-assessment exercises but also the way they used this technique (Balbastre, 2006). Due to the appearance of a highly turbulent environment, this firm reduced the time frame for self-assessment from 1 year to 6 months and modified the self-assessment approach to the application of a simple questionnaire. As a result, Ericsson was able to rapidly adapt to environmental changes, modify strategic goals and actions, and achieve positive results in the short term.