So, what are the benefits of Business Excellence? In this blog we show the key findings from research into the impact of Business Excellence in Europe.
  • 68 Spanish firms were asked to indicate why they were using the EFQM Model. Figure 2 shows that the two main reasons given were to improve the external image of the company (4.06 mean score) and increase the efficiency of internal processes (3.93). In addition, internal communication (3.79) and administrative procedures (3.69) that improve the quality of products and services (3.56) were seen as being important. Finally, the workforce was better trained and more motivated (3.5), and the employees were involved in projects and improvement groups within the company (3.53).
Figure 1 – The EFQM Model

Figure 2 – Reasons for Using the EFQM Model as Reported by 68 Spanish Organisations.
Source: Gómez-López, R., Serrano-Bedia, A.M. and López-Fernández, M.C., 2019. An exploratory study of the results of the implementation of EFQM in private Spanish firms, International Journal of Quality & Reliability Management, Vol. 36, No. 3, pp. 331-346.

  • 120 EFQM Award winning organisations were compared with organisations that had not participated in the EFQM Awards or followed the EFQM Framework. This study, spanning over a period of 11 years, revealed that the organisations that had participated outperformed those that had not. The award-winning companies outperformed the non‐award-winning companies for a period of three years after they had won their first award in terms of the primary measure for this study, i.e., share price performance.
    Furthermore, in terms of sales within a short period of time, one year after having won their first award, the award-winning companies outperformed the non‐award-winning companies by 8%. This increased to 17% three years after having won the first award and was sustained five years after having won a first award, with the award-winning companies outperforming the comparison companies by an impressive 77%, refer to Figure 3. Additionally, during the post-implementation periods, the award-winning companies experienced higher growth in capital expenditure over sales, which is an indication that the award-winning companies were making long-term improvements and continuing to invest. This was accompanied by a growth in assets experienced by the award-winning companies and which was sustained five years after having received their first award. Further evidence that a TQM approach lends itself to improved financial performance can be put forward in terms of operating income. Five years after having received a first award, the award-winning companies were outperforming the comparison companies in operating income measures, including operating income; operating income over sales; and operating income over assets.

Figure 3 – Mean difference of percent change in various key accounting measures between the award-winning companies and comparison companies one year before to five years after winning the first known award
Source: Boulter, L., Bendell, T. and Dahlgaard, J., 2013. Total quality beyond North America: A comparative analysis of the performance of European Excellence Award winners, International Journal of Operations & Production Management, Vol. 33, No. 2, pp. 197-215

This blog is part of a larger report titled ‘Best Practice Brief, Issue 2: International Research Evidence on the Benefits of Business Excellence.’ The report compiles findings from studies conducted over the last 35 years, shedding light on how Business Excellence delivers economic and societal benefits for organizations and countries worldwide. The full report is available from the member’s area of Membership of is available at

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Author:by Dr Robin Mann, Centre for Organisational Excellence Research, New Zealand, 7 January, 2024
Source :-
BPIR Category : 14.3.4 Conduct a business excellence assessment.
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