The current material is taken from sources of EFQM: www.efqm.org
Society Results
Why are Society Results Important ?
1.1. Overview.
Nowadays, whilst financial performance continues to be a vital factor, other parameters such as a focus on Customer Value, Employee Satisfaction, StrategyDeployment, Supplier Performance and Partnership and Alliance Success Rates are also important Key Performance Indicators. Some organisations have gone much further than this, they have extended their definition of Excellence to an examination of the extent to which they conduct their business ethically and co-exist in harmony with different groups in Society.
Customers and potential customers can, and do, exercise choice. Price is not the only determinant - an organisation’s stance on social and environmental issues can carry significant weight in the mind of the consumer and can have a dramatic impact on the bottom line. Legal Responsibilities are increasing too, so the organisations need to adapt their performance in order to obey the law.
Environmental policies bring real benefit to shareholder value. Your organisation will benefit from recycling, supporting the local community, involve yourpeople in local activities, donate de-commissioned assets, create employment in the area, etc.
There are also situations where social responsibility actions have its origins in the need for an organisation to stop a crisis arising, limit the damage already caused, or protect the organisation’s reputation. No organisation is immune from potential conflict and problems with their societal responsibilities.
Excellence organisations design and manage processes and systems that enable them to understand, monitor and assess their engagement with SocietyStakeholders. Collecting and analysing Society Results is a crucial part of the way they operate.
1.2. Definition of Society.
By the term "Society", we are referring to any individual or group that is impacted on by your existence, apart from when they are in the role of customer, supplier, partner or staff member. This means that when a customer or a member of staff is in the building, the impact of your relationship with them is measured under Customer Results or People Results or Key Performance Results (Criterion 9). However, when they are at home, sitting in their favourite chair watching the television, these people become members of Society, living within communities that may, or may not, be impacted on by your organisation. “Society” is also the environmental world within which the organisation inhabits. In this sense, the definition includes the flora and fauna surrounding an organisation’s place of work. There is an “Internal Society” too, which is inside the organisation, between different employees.
1.3. Starting with the Enablers – Policy and Strategy.
Practical experience has taught us that when organisations start to use the EFQM Model, they find Society Results very challenging if they have not developed a strategy for managing their relationships with the different groups in Society. To develop that strategy, you need to follow a process following the steps suggested below:
1. Identify your “society “ Stakeholders and determine the desired relationships and policies.
2. Create approaches / processes and measures to deliver the desired relationships.
3. Ensure that “society” stakeholders management has full support of leaders.
4. Ensure that staff are appraised and recognised for supporting the strategy.
5. Measure your success from the perspective of society, customers and people.
6. Consider the results in relation to your strategy and business plan / budget.
7. Learn lesson, review and revise your “society” strategy, approaches and targets.
Making your approach to Society and the environment an explicit part of your Strategy conveys a powerful message to all of your Stakeholders. But one significant difference between Good Practice organisations and other is the degree to which Society strategies are made tangible and relevant to everyone involved.
Producing Tangible Results.
2.1. A Culture of Non-Measurement.
Experience shows that organisations undertaking Self-Assessment often find themselves with low scores in the area of Criterion 8 because even though they perceive themselves to be “environmentally friendly” and “society aware”, they have never quantified their efforts and have only a general sense and a set of assumptions about the impact they are having. Some organisations take the attitude that measurement is not important, but Good Practice organisations apply the same rigour to their relationships with Society Stakeholders that they apply to other Stakeholder groups.
2.2. Perception Measures.
The EFQM Excellence Model separates Society Results into two distinctive groups of measurements: Society’s Perception of the organisation (obtained, for example, from surveys, reports, public meetings, public representatives,governmental authorities) and Performance Indicators, such as quantity, frequency, volume or weight, measured by the organisation.
There are two main ways of collecting data in relation to Society’s Perception :
- Direct canvassing, usually via surveys commissioned (survey measures are often called laggin indicators because they happen “after event”.
- Indirect collection, benefiting from data collected by other parties.
2.3. Performance Indicators.
These measures are the internal ones used by the organisation in order to monitor, understand, predict and improve the performance of the organisation and to predict perceptions of its external customers. Performance measures are usually linked with volume, frequency, time and weight. Organisations often find that it takes little effort to install a measurement system in relation to their activities. Perception Measures and Performance Indicators quantify efforts and help organisations to understand the degree to which policies are being deployed and efforts are justified. Bringing a measurement culture to your Societal and Environmental activities will enable you to focus your improvement efforts and determine accurately if you are part of the problem or the solution !
2.4. Achieving Excellent Society Results.
The Excellence of the Result is determined by the degree to which an organisation can demonstrate trends, targets and comparisons (numerically) with clear references to causes and the presentation of a set of results that correspond to the range of activities and the size and nature of the organisations.
- Setting targets: An organisation’s performance in relation to Society Results cannot be assessed fully unless the results are matched against the targets (relevant in terms of the organisation’s declared aspirations) set by the organisation.
- Trends: Sustainability is assessed by the degree to which the organisation’s Society Results show positive trends over a period of years.
- Range of Results: An incomplete set of Society Results can have a dramatic impact on the value of the information collected for informing improvements, future strategy and business results. The Results need to be segmented to understand the experience, needs and expectations of specific stakeholders withinSociety.
How are you communicating the Results ?
Managing your communication processes as well as your content will enable you to use your Society Results as a way of building even better relationships with your Stakeholders and reinforcing the concepts of win-win.