Comparing the Balanced Scorecard and EFQM Business Excellence Model


Dive deep into comparing the Balanced Scorecard and EFQM Business Excellence Model. Understand their origins, design, usage processes, and how their fundamental differences can influence strategic decisions within your organization. Perfect for IT leaders navigating performance improvement and change management.


This paper compares the balanced scorecard with the business excellence model and shows that their superficial similarities mask critical differences in their fundamental design and application.

The Balanced Scorecard (BSC) and the European Foundation for Quality Management (EFQM) Business Excellence Model stand out in business performance improvement and management tools. Both have been widely adopted and supported by an influential network of users, consultants, and software providers. However, despite their popularity and superficial similarities, choosing the right tool for your organization is not straightforward. This stems from the fact that these two models originate from different backgrounds and are designed to be used in different processes.

The problem for IT professionals and leaders is to discern the core differences between these two models and identify the right tool that aligns with their organization's unique needs and strategies. While both models aim to drive organizational improvement by spotlighting areas of performance that need attention, their approach to accomplishing this goal diverges significantly.

This illuminating paper compares the Balanced Scorecard and the EFQM Business Excellence Model. It delves into the fundamental design and application differences between the two models, thus shedding light on their distinct epistemological bases.

In essence, the solution proposed by this paper is to offer a contingency-based decision-making guide for IT leaders. It provides insights into both models' origins, design processes, and practical applications. By understanding each model's underlying principles and characteristics, IT leaders can make more informed decisions about which approach suits their organization's strategic aims and performance improvement needs.

This comparison is invaluable for IT professionals seeking to optimize their performance management strategies. By acknowledging the unique strengths and applications of the Balanced Scorecard and the EFQM Business Excellence Model, leaders can ensure that their chosen tool aligns with their organization's goals, thereby effectively driving continuous improvement and business excellence.

The insights gleaned from this comparison of the Balanced Scorecard (BSC) and the EFQM Business Excellence Model can equip CIOs and other IT leaders with the knowledge to address multiple real-world challenges they face in their roles.

  1. Strategic Decision-Making: Understanding the fundamental differences between these two models can inform strategic decision-making. For instance, if a CIO is grappling with implementing a performance improvement tool, they can leverage this comparison to determine which model aligns more with their organization's culture, needs, and objectives.
  2. Performance Management: CIOs often have to monitor and improve the performance of various IT processes. With its focus on key performance indicators (KPIs) across different perspectives, the BSC may provide a more structured approach to performance management in specific functional areas.
  3. Organizational Improvement: Conversely, if the CIO's goal is holistic quality management and broader organizational improvement, the EFQM model, with its comprehensive and non-prescriptive approach, may be more suitable.
  4. Change Management: CIOs often have to spearhead change management initiatives. Understanding the differing processes of implementing the BSC and EFQM models can guide the CIO in managing change, including stakeholder communication, training needs, and resistance management.
  5. Continuous Learning and Improvement: Continuous learning and improvement is a significant part of a CIO’s role. The EFQM model’s focus on learning, creativity, and innovation could be a valuable tool for driving these initiatives.
  6. Resource Allocation: CIOs are often tasked with making decisions about resource allocation. With its focus on strategic objectives, the BSC may offer insights into prioritizing investments aligned with the organization's strategic goals.

In conclusion, the learning from this comparison serves as a practical guide for CIOs. It helps them select the appropriate tool that aligns with their role and their organization's strategic objectives, enabling them to drive performance improvement and manage change effectively.




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