The European model of Excellence (EFQM) uses in Self-Assessment of Finance
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Abstract 6
Introduction 7
Chapter One 10
Theoretical Framework 10
1.1 Introduction 10
1.1.1 Excellence 10
1.1.2 EFQM Excellence Model 11
1.1.3 Previous Studies: 14
1.2 The Fundamental Concepts Of (EFQM) Excellence Model 22
1.2.1 Understanding The EFQM Excellence Model 24
1.2.2 Conceptual Framework: 26
1.3 Excellence Model for higher education 27
1.3.1 The Enablers for higher education 28
1.3.2 The Results for higher education 29
1.3.4 Partnership & Resources 30
1.4 Finances and managed 33
1.4.1 Supporting the Three Pillars of Good Institutions through Finance: 35
1.4.2 Sub-criteria and Factors that Support Excellence in Finance 36
1.4.3 Sub-criterion 1: Planning 37
1.4.3 Sub-criterion 2: Implementation 39
1.4.4 Sub-criterion 3: Financial Assessment 42
1.4.5 Interrelationships between Finance and Other Criteria 44
1.4.5 Key Sources of Finance Information 45
1.5 What is a Budget 46
1.5.1 Defining a Budget 46
1.5.2 Why Budget 46
1.5.3 RECOGNIZING YOUR RESPONSIBILITIES 46
1.5.4 The Role Of Budgeting 46
1.5.5 Budgeting in Business 47
1.5.6 Budgeting and Business Strategy 47
1.5.7 Managing the Budgeting Process 47
1.5.8 Understanding Capital Budgets 47
Chapter two 48
Methodology 48
2.1 Establishment of University of Baghdad: 48
2.1.1 Vision of University of Baghdad 50
2.1.2 Mission of University of Baghdad 50
2.1.3 The strategic objectives of University of Baghdad: 51
2.1.4 SWOT analysis of University of Baghdad: 52
2.2 The practical side and actions 54
2.2.1 Method of collecting data and drawing conclusions: 54
2.2.2 Methodology for the calendar: 55
2.2.3 Distribute calendar grades: 55
2.2.4 Evaluation methodologies: 58
2.3 Apply institutional performance evaluation model for University of Baghdad 59
2.3.1 Financial standard calendar 60
2.3.2 Financial criteria and indicators questionnaire answers 67
2.3.3 Average proportions of financial criteria 71
2.3.4 Result of analyses Finance criteria 71
2.3.5 Scores of financial criteria: evaluating criteria scale 73
2.4 Abstract of financial criteria sub-criterion grades 74
Chapter Three 75
Conclusions and recommendations 75
3.1 The Foundations of Government (state) Universities Excellence 75
3.2 Data Analysis and Discussion 76
3.2.1 Strengths of financial criteria: 76
3.2.2 Weaknesses of financial criteria: 76
3.2.3 Opportunities of financial criteria: 77
3.2.4 Threats of financial criteria: 78
3.3 Conclusions and Recommendations: 78
3.3.1 Conclusions 78
3.3.2 Recommendations: 79
Introduction 7
Chapter One 10
Theoretical Framework 10
1.1 Introduction 10
1.1.1 Excellence 10
1.1.2 EFQM Excellence Model 11
1.1.3 Previous Studies: 14
1.2 The Fundamental Concepts Of (EFQM) Excellence Model 22
1.2.1 Understanding The EFQM Excellence Model 24
1.2.2 Conceptual Framework: 26
1.3 Excellence Model for higher education 27
1.3.1 The Enablers for higher education 28
1.3.2 The Results for higher education 29
1.3.4 Partnership & Resources 30
1.4 Finances and managed 33
1.4.1 Supporting the Three Pillars of Good Institutions through Finance: 35
1.4.2 Sub-criteria and Factors that Support Excellence in Finance 36
1.4.3 Sub-criterion 1: Planning 37
1.4.3 Sub-criterion 2: Implementation 39
1.4.4 Sub-criterion 3: Financial Assessment 42
1.4.5 Interrelationships between Finance and Other Criteria 44
1.4.5 Key Sources of Finance Information 45
1.5 What is a Budget 46
1.5.1 Defining a Budget 46
1.5.2 Why Budget 46
1.5.3 RECOGNIZING YOUR RESPONSIBILITIES 46
1.5.4 The Role Of Budgeting 46
1.5.5 Budgeting in Business 47
1.5.6 Budgeting and Business Strategy 47
1.5.7 Managing the Budgeting Process 47
1.5.8 Understanding Capital Budgets 47
Chapter two 48
Methodology 48
2.1 Establishment of University of Baghdad: 48
2.1.1 Vision of University of Baghdad 50
2.1.2 Mission of University of Baghdad 50
2.1.3 The strategic objectives of University of Baghdad: 51
2.1.4 SWOT analysis of University of Baghdad: 52
2.2 The practical side and actions 54
2.2.1 Method of collecting data and drawing conclusions: 54
2.2.2 Methodology for the calendar: 55
2.2.3 Distribute calendar grades: 55
2.2.4 Evaluation methodologies: 58
2.3 Apply institutional performance evaluation model for University of Baghdad 59
2.3.1 Financial standard calendar 60
2.3.2 Financial criteria and indicators questionnaire answers 67
2.3.3 Average proportions of financial criteria 71
2.3.4 Result of analyses Finance criteria 71
2.3.5 Scores of financial criteria: evaluating criteria scale 73
2.4 Abstract of financial criteria sub-criterion grades 74
Chapter Three 75
Conclusions and recommendations 75
3.1 The Foundations of Government (state) Universities Excellence 75
3.2 Data Analysis and Discussion 76
3.2.1 Strengths of financial criteria: 76
3.2.2 Weaknesses of financial criteria: 76
3.2.3 Opportunities of financial criteria: 77
3.2.4 Threats of financial criteria: 78
3.3 Conclusions and Recommendations: 78
3.3.1 Conclusions 78
3.3.2 Recommendations: 79
Organizations endeavour to attain success and achieve excellence in their professional lifetime. This means there is a real need to develop more effective and efficient institutional management practices (Steed et al., 2005). In order to reach this goal, many organizations are turning to total quality management models such as the "Excellence model" of The European Foundation for Quality management (EFQM), as an effective and practical tool to attain improvement opportunities.
Steed et al., (2003) pointed out that EFQM Excellence Model recognizes that stakeholder needs are met through the process that describes the working of the organization, hence the improvement of the process is at the heart of any organizational development and it is through processes that the talent of people can be released, which in turn produces better performance. It also follows that improvement in performance can be achieved only by involving the people in the continuous improvement of the processes they work in. It recognizes that senior managers are too detached from these processes to effect long term sustainable improvement, because they simply do not have the „requisite variety". Therefore, the maintenance and improvement of the quality of higher education institutions must be the responsibility and full commitment of institutional leadership (Anyamele 2007).
When you start a road trip, before starting your engine and deciding the route to be taken, you first need to know your current position. When you consider starting a journey towards excellence, it is exactly the same: before selecting and implementing improvement actions, you first need to have a structured picture of your organization in order to comprehend your current level of excellence (EFQM, 2013). Regardless of sector, size, structure or maturity, organizations need to establish an appropriate management framework to be successful. Although there are many quality and excellence models such as "European Foundation for Quality Management (EFQM) excellence model, American Malcolm Baldrige National Quality (MBNQ), Japanese TQM model (Deming), Dubai model for Excellence in Government Performance, Singapore Total Quality Model (STQM), New Zealand Total Quality Model (NZTQ)", the researcher chooses the EFQM excellence model as its now considered the most widely used organizational framework which is applied by thousands of institutions and has become the basis for the majority of national and regional Quality Awards. EFQM Excellence Model is a practical, non-prescriptive framework that enables organizations to: (http://www.efqm.org) Assess where they are on the path to excellence; helping them to understand their key strengths and potential gaps in relation to their stated vision and mission. Provide a common vocabulary and way of thinking about the organization that facilitates the effective communication of ideas, both within and outside the organization. Integrate existing and planned initiatives, removing duplication and identifying gaps. Provide a basic structure for the organization's management system. The business environment demands organizations to be sufficiently agile to respond to both new opportunities and emerging threats with appropriate speed. The EFQM model (2013) version expects organizations to remain sensitive to changes in the internal and external business environment and to respond and adapt quickly. This may require organizations to adapt organization structures, processes, new technologies, review strategic partnerships and implementing them in a timely and effective manner. Building agility is easier said than done and the task can certainly be quite challenging (Thawani, 2013). Higher education is viewed by many as central to the creation of opportunities and prosperity in all modern economies. The pace of global change requires a continued evolution of teaching, Learning and research with the emergence of more responsive and focused activities to meet the demands of tomorrow’s marketplace. For this reason it is vital to continuously improve institutions, moving further towards ‘Excellence’ by recognizing, anticipating and understanding the needs of students and enhancing their whole student experience (Sheffield Hallam University, 2003). The EFQM Excellence Model is an effective and practical tool to support the analysis and prioritization of improvement opportunities within higher education organizations, Higher Education Version of the EFQM Excellence Model, which was created by Carol Steed, Assistant Director at the Centre for Integral Excellence (Sheffield Hallam University) in 2003, gives an interpretation for the criteria and fundamental concepts for Higher Education (Maslow & others, 2006).
The EFQM Excellence Model is based on 9 criteria. Five of these are “Enablers” and four are “Results”. The “Enabler” criteria cover what an organization does. The “Results” criteria cover what an organization achieves (Michalska, 2008). The 5 enablers are: leadership, strategy, people, partnerships & resources and processes, Products & Services. The 4 result areas are: customer results, people results, society results and business results.
Scholar researching financial criterion at Baghdad University being one of the most important educational organizations in Iraq and always seeking for excellence and get Arab and international awards, where the researcher seeks here to apply excellence model on this sample to diagnose the strengths and opportunities that help the organization grow and excellence and provide the best service as well as the vulnerabilities and threats that hinders their prosperity, growth and excellence.
There is no doubt that at the beginning of the educational year, Universities face an increase in the intensity of competition. Instability of the financial resources which will negatively affect the implementation of activities and programs. And weak integration in quality assurance processes and development at the university.
This study tries to show how to apply financial management at UB with financial criteria in accordance with the EFQM model of excellence and can summarize the problem in question is: "Does the University financial standard applied in accordance with the European EFQM Excellence Model?"
Steed et al., (2003) pointed out that EFQM Excellence Model recognizes that stakeholder needs are met through the process that describes the working of the organization, hence the improvement of the process is at the heart of any organizational development and it is through processes that the talent of people can be released, which in turn produces better performance. It also follows that improvement in performance can be achieved only by involving the people in the continuous improvement of the processes they work in. It recognizes that senior managers are too detached from these processes to effect long term sustainable improvement, because they simply do not have the „requisite variety". Therefore, the maintenance and improvement of the quality of higher education institutions must be the responsibility and full commitment of institutional leadership (Anyamele 2007).
When you start a road trip, before starting your engine and deciding the route to be taken, you first need to know your current position. When you consider starting a journey towards excellence, it is exactly the same: before selecting and implementing improvement actions, you first need to have a structured picture of your organization in order to comprehend your current level of excellence (EFQM, 2013). Regardless of sector, size, structure or maturity, organizations need to establish an appropriate management framework to be successful. Although there are many quality and excellence models such as "European Foundation for Quality Management (EFQM) excellence model, American Malcolm Baldrige National Quality (MBNQ), Japanese TQM model (Deming), Dubai model for Excellence in Government Performance, Singapore Total Quality Model (STQM), New Zealand Total Quality Model (NZTQ)", the researcher chooses the EFQM excellence model as its now considered the most widely used organizational framework which is applied by thousands of institutions and has become the basis for the majority of national and regional Quality Awards. EFQM Excellence Model is a practical, non-prescriptive framework that enables organizations to: (http://www.efqm.org) Assess where they are on the path to excellence; helping them to understand their key strengths and potential gaps in relation to their stated vision and mission. Provide a common vocabulary and way of thinking about the organization that facilitates the effective communication of ideas, both within and outside the organization. Integrate existing and planned initiatives, removing duplication and identifying gaps. Provide a basic structure for the organization's management system. The business environment demands organizations to be sufficiently agile to respond to both new opportunities and emerging threats with appropriate speed. The EFQM model (2013) version expects organizations to remain sensitive to changes in the internal and external business environment and to respond and adapt quickly. This may require organizations to adapt organization structures, processes, new technologies, review strategic partnerships and implementing them in a timely and effective manner. Building agility is easier said than done and the task can certainly be quite challenging (Thawani, 2013). Higher education is viewed by many as central to the creation of opportunities and prosperity in all modern economies. The pace of global change requires a continued evolution of teaching, Learning and research with the emergence of more responsive and focused activities to meet the demands of tomorrow’s marketplace. For this reason it is vital to continuously improve institutions, moving further towards ‘Excellence’ by recognizing, anticipating and understanding the needs of students and enhancing their whole student experience (Sheffield Hallam University, 2003). The EFQM Excellence Model is an effective and practical tool to support the analysis and prioritization of improvement opportunities within higher education organizations, Higher Education Version of the EFQM Excellence Model, which was created by Carol Steed, Assistant Director at the Centre for Integral Excellence (Sheffield Hallam University) in 2003, gives an interpretation for the criteria and fundamental concepts for Higher Education (Maslow & others, 2006).
The EFQM Excellence Model is based on 9 criteria. Five of these are “Enablers” and four are “Results”. The “Enabler” criteria cover what an organization does. The “Results” criteria cover what an organization achieves (Michalska, 2008). The 5 enablers are: leadership, strategy, people, partnerships & resources and processes, Products & Services. The 4 result areas are: customer results, people results, society results and business results.
Scholar researching financial criterion at Baghdad University being one of the most important educational organizations in Iraq and always seeking for excellence and get Arab and international awards, where the researcher seeks here to apply excellence model on this sample to diagnose the strengths and opportunities that help the organization grow and excellence and provide the best service as well as the vulnerabilities and threats that hinders their prosperity, growth and excellence.
There is no doubt that at the beginning of the educational year, Universities face an increase in the intensity of competition. Instability of the financial resources which will negatively affect the implementation of activities and programs. And weak integration in quality assurance processes and development at the university.
This study tries to show how to apply financial management at UB with financial criteria in accordance with the EFQM model of excellence and can summarize the problem in question is: "Does the University financial standard applied in accordance with the European EFQM Excellence Model?"
1. Success in managing performance in a set of goals that is most important:
A. Clear organization objectives.
B. Select the Chairperson and subsidiary operations.
C. Develop measurements of performance and achievement of objectives.
D. The existence of a mechanism for continuous monitoring and evaluation in the outstanding performance in the light of results target.
2. The study showed the lack of static model includes all the main and subsidiary standards for achieving excellence in the performance of all services organizations, highlighting the importance of applying the model to be compatible with the nature of the work of the Ministry in light of the global template.
3. Prepare a model European Foundation for quality management framework for performance management through standards and activities as well as it provides an effective tool for self-assessment.
4. A harmony between the European standards of enterprise quality management model and the basic elements of effective quality control system established by the financial standard.
5. Although there is variation in the rates of application and document levels divide the main criteria and European enterprise model sub for quality management in the financial Department of Baghdad University relative to different actual realized each, which was reflected in the result on the respective ratios.
6. To restrict financial and human League, balancing the State budget a key obstacle in front of him to expand and diversify its activities and functions.
7. Unclear competences and powers of financial departments, the concentration of powers in the hands of officials in those departments.
8. The need to develop equipment and means and methods of work in financial departments to keep pace with the evolution of computerized information systems in other countries.
A. Clear organization objectives.
B. Select the Chairperson and subsidiary operations.
C. Develop measurements of performance and achievement of objectives.
D. The existence of a mechanism for continuous monitoring and evaluation in the outstanding performance in the light of results target.
2. The study showed the lack of static model includes all the main and subsidiary standards for achieving excellence in the performance of all services organizations, highlighting the importance of applying the model to be compatible with the nature of the work of the Ministry in light of the global template.
3. Prepare a model European Foundation for quality management framework for performance management through standards and activities as well as it provides an effective tool for self-assessment.
4. A harmony between the European standards of enterprise quality management model and the basic elements of effective quality control system established by the financial standard.
5. Although there is variation in the rates of application and document levels divide the main criteria and European enterprise model sub for quality management in the financial Department of Baghdad University relative to different actual realized each, which was reflected in the result on the respective ratios.
6. To restrict financial and human League, balancing the State budget a key obstacle in front of him to expand and diversify its activities and functions.
7. Unclear competences and powers of financial departments, the concentration of powers in the hands of officials in those departments.
8. The need to develop equipment and means and methods of work in financial departments to keep pace with the evolution of computerized information systems in other countries.