Introduction
Business management models have emerged as a response to the intense and complex competition faced by companies in various economic sectors at the global level. In recent years, several countries have promoted quality, competitiveness and business excellence by developing models that recognize and reward the best business practices.
The objective of the article is to provide a clear and concise overview of the models of excellence in quality management, highlighting their main characteristics and highlighting the benefits of each model, with a practical approach that allows organizations to identify the most appropriate for their needs and strategic objectives.
What are the models of excellence in quality management?
Let us begin by defining what we mean by “model”. According to Kanji (2002), a model is an abstract representation of reality that captures the most relevant elements of a system, with the objective of facilitating its understanding. In the context of quality management, these models seek to represent and guide the key processes within an organization to achieve continuous improvement.
In this sense, Pastor Tejedor (2013) points out that excellence is understood as a management philosophy or strategy based on outstanding practices, whose purpose is to satisfy in a balanced way the expectations of customers, employees, shareholders and society. This is where excellence models come in, as strategic frameworks aimed at guiding organizations in their search for the optimization of processes and sustainable results.
Membrado (2002) adds that a model of excellence consists of a set of criteria organized in specific areas, which serve as a reference to develop a plan to guide a company towards continuous improvement of its management and performance. These models are structured around the principles of excellence, ensuring that all key areas of the organization are covered.
Excellence models focus on several key aspects that contribute to total quality and organizational success. These aspects include:
- Leadership: Management must provide vision, strategy and direction, and foster a culture that values quality and continuous improvement.
- Customer focus: Organizations should focus on understanding and satisfying customer expectations and needs, always seeking to improve the customer experience.
- Continuous improvement: Excellence models promote continuous improvement through iterative cycles that allow organizations to learn and adapt.
- Data-driven results: Decision-making must be based on accurate data and rigorous analysis, which allows us to identify areas for improvement and measure the impact of implemented actions.
- Process management: Organizational processes must be clearly defined, optimized and aligned with strategic objectives to maximize efficiency and effectiveness.
Benefits of quality management excellence models
As stated by Bertrán, et al. (2002), although the popularity of excellence models continues to grow, it is important to highlight the benefits they can bring to organizations. These models are based on solid methodologies that apply well-structured criteria and rigorous approaches. Their effectiveness has been proven by companies of various sizes and sectors, both in production and services, operating in global markets.
One of the great values of excellence models is that they allow organizations to be evaluated based on objective and measurable evidence, providing a quantifiable basis for their performance. By implementing these models, companies can align the attitude of their members and their processes with the strategic objectives of the organization at all levels.
In addition, these models help to identify internal strengths and weaknesses, and ensure that the progress achieved is sustainable over the long term. This is achieved through the discipline of continuous improvement, which is established as a key principle. Finally, the models provide a comprehensive and quantifiable view of the state of the organization, which facilitates decision-making and planning for future progress.
Comparison of excellence models in quality management
There are different models that have been designed to help organizations achieve their objectives of continuous improvement and organizational success. Each of these models has its own characteristics, principles and criteria.
Below is a comparative table of the main aspects of three of the best known and most widely used models: EFQM, Malcolm Baldrige and ISO 9001.
Model | EFQM (European Foundation for Quality Management) | Baldridge Performance Excellence Program Model | ISO 9001 |
Main focus | Continuous improvement and organizational excellence | Improving competitiveness and performance | Quality management |
Key categories | 9 criteria: Leadership, Strategy, People, Processes, Results, Customers, Society, Resources, Innovation. | 7 criteria: Leadership, Strategic Approach, Customer Focus, Measurement, Analysis and Knowledge Management, People Focus, Process Management, Results. | 7 principles: Customer focus, Leadership, Staff commitment, Process approach, Continuous improvement, Fact-based decision making, Mutually beneficial relationships with suppliers. |
Certification | It does not grant certification, but recognizes organizations that implement its criteria. | Provides public recognition for high-performing organizations. | Yes, it offers formal certification of compliance with ISO quality standards. |
Geographic scope | Mainly in Europe, but used globally. | United States, but used globally. | International. |
Implementation requirements | Flexible, based on the context and size of the organization. | Flexible, context- and size-based Rigorous approach with emphasis on measuring results and organizational performance of the organization. | Requires compliance with specific requirements related to the quality processes. |
Focus on results | Yes, it promotes the measurement of results in different areas (customers, people, processes). | Yes, it focuses on results and performance improvement through measurement. | Yes, focused on the quality of processes, products and services. |
External evaluation | Optional, based on an impact assessment model. | Awards and recognitions are given to the most outstanding organizations. | Requires periodic external audits to verify compliance with requirements. |
Application in sectors | Suitable for all sectors, especially large and medium-sized companies. | Originally for manufacturing companies, but now applicable to any sector. | Adaptable to any type of organization, especially in sectors with high quality requirements (manufacturing, services, etc.). |
Quality models share several characteristics that make them effective in quality management and continuous improvement. Among these, customer orientation stands out, which places customer satisfaction and needs at the center of business strategies, which implies meeting customer expectations and anticipating their future requirements.
Continuous improvement is another common pillar, driving organizations to constantly review and optimize their processes, always seeking efficiency and waste reduction. In addition, these models encourage process management, which implies a holistic view of the company and its operations, promoting management based on data, evidence and measurements.
Although the excellence models have common principles, each has particular approaches tailored to different organizational contexts. For example, the EFQM and the Malcolm Baldrige share many criteria, but the former focuses more on sustainability and future orientation, while the latter emphasizes tangible results and improvement of operational processes.
ISO 9001, on the other hand, focuses mainly on quality control and improvement in terms of compliance. Despite these differences, all models promote strategic alignment, measurement of results and active involvement of employees in the improvement process.
If you want to learn more about excellence models you can review the following videos: EFQM Business Excellence Model Animated PowerPoint Slides by SketchbBubble and What is ISO 9001? Quick Guide to ISO 9001:2015 ISO Quality Management System.
The evolution of EFQM 2025
As described by the European Foundation for Quality Management (2024), the latest update of its EFQM model to the 2025 version responds to recent global challenges, such as pandemic, supply chain crisis and inflation, and seeks to help organizations overcome key difficulties in continuous improvement, stakeholder relationship management and adaptation to changing environments through best practices and proven approaches.
The EFQM 2025 model introduces several important updates to its approach to business excellence. Unlike previous versions, EFQM 2025 places greater emphasis on sustainability and innovation, aligning with global trends toward ecological transition and climate change adaptation. It also incorporates a stronger focus on long-term sustainable performance and risk management.
The new update also introduces a more inclusive vision, recognizing the importance of diversity and equal opportunities within organizations. In addition, it stresses the importance of leadership in the implementation of strategies and the commitment to continuous improvement, not only at the level of internal processes, but also in terms of the relationship with stakeholders and social impact.
In its approach, EFQM 2025 follows a structure of three major dimensions: Management, Execution and Results. This structure facilitates a comprehensive assessment of organizations based on their key processes, results and sustainability. Below, we explain a little more about each of these dimensions:
Management
This dimension focuses on the organization’s vision, purpose, strategy and leadership, addressing how these elements align with the organizational culture to guide decision making and resource management. It is essential for the organization to have a clear vision and a defined purpose, which allows all levels of the company to align towards the same strategic objectives. In addition, leadership plays a vital role in fostering a culture of innovation, social responsibility and continuous improvement.
Key subdimensions:
- Purpose and strategy: Define the future direction of the organization.
- Organizational culture and leadership: Develop a culture that supports the successful execution of the strategy, favors innovation and is based on ethical principles.
Execution
Execution refers to how the organization manages its operations and projects to effectively implement its strategy. This includes the ability to manage the day-to-day running of processes, as well as the organizational transformation necessary to remain competitive in the marketplace. A key aspect here is the creation of sustainable value, both for shareholders and stakeholders, as well as the ability to involve and engage these groups in the achievement of organizational objectives.
Key subdimensions:
- Manage operation and transformation: Optimize current processes and adapt the organization to the necessary changes.
- Create sustainable value: Ensure that business decisions and activities generate value not only in the short term, but also in the long term, considering sustainability.
- Engage stakeholders: Maintain a proactive relationship with all stakeholders (customers, employees, suppliers, the community), ensuring that their expectations are aligned with the organizational strategy.
Results
The results dimension focuses on the measurement and analysis of the results achieved by the organization, both in terms of strategic and operational performance. This dimension also pays special attention to stakeholder perceptions, as their opinions of the organization directly influence reputation and long-term success.
Key subdimensions:
- Strategic and operational performance: Measure the success of the organization in terms of its ability to achieve the strategic and operational objectives established.
- Stakeholder perception: Evaluate how different stakeholders (customers, employees, shareholders, etc.) perceive the organization’s performance, which is crucial for maintaining competitiveness and sustainability.
This 2025 update seeks to help organizations become more agile, resilient and accountable in their approach to business excellence, taking into account not only financial performance, but also social and environmental sustainability.
It is worth noting that the presence of artificial intelligence (AI) in this update plays a relevant role, especially in the execution dimension and in the way processes are managed, sustainable value is created and stakeholders are involved. AI is a technological tool, and an engine of organizational transformation that drives efficiency, innovation and agility in models of excellence.
The EFQM 2025 model proposes:
- The use of innovation and technology, such as artificial intelligence and data analysis, where appropriate, to identify new opportunities and enhance value creation.
- The use of artificial intelligence tools, advanced analytics and predictive models to extract value from data, obtain useful information and make informed decisions.
This approach fosters greater transparency and collaboration, encouraging companies to act ethically and remain aligned with stakeholder expectations as they face rapid changes in the global environment.
Conclusions
From the first systematic approach to total quality to contemporary models such as EFQM, Malcolm Baldrige and ISO 9001, the central idea has always been continuous improvement and the integration of quality at all levels of the organization. These models offer a structured framework for achieving high standards of performance, and provide a solid foundation for building a culture of business excellence.
Through the comparison of models in this article, we have highlighted their characteristics, advantages and areas of application, allowing organizations to choose the most appropriate model for their specific needs. Whether to achieve ISO 9001 certification, improve operational efficiency through benchmarking, or gain competitiveness through EFQM or Malcolm Baldrige leadership and innovation, each offers different but equally effective ways to improve quality management.
Models of excellence are more than a set of standards or procedures; they are a vehicle for transforming organizations, propelling them to compete globally, achieve levels of operational excellence and, ultimately, ensure their long-term sustainability.
References
- Bertrán R., A. H. (2002). Modelos de excelencia en la gestión. Un análisis comparativo. Buenos Aires: Consejo Argentino para las Relaciones Internacionales.
- EFQM – European Foundation for Quality Management. (2024). EFQM 2025. Disponible en: https://efqm.org/es/the-efqm-model/
- Gómez, J; Martínez, M; Martínez, A. (2014). Los modelos de excelencia como herramientas de gestión. Revista de Contabilidad y Dirección. 19 (2014), 29-49. https://accid.org/wp-content/uploads/2018/11/Los_modelos_de_excelencia_como.pdf
- KanjI, G.K. (2002). Measuring Business Excellence, Routledge. London.
- Membrado, J. (2002). Innovación y mejora continua según el Modelo EFQM de Excelencia, Ed. Díaz de Santos, Madrid.
- Pastor Tejedor, J; Calcedo Ascoz, J. M; Royo Pérez, M. (2013). Comparación de los Modelos de Evaluación de la Excelencia Empresarial. Tourism & Management Studies, 1058-1072.