Richard McLaughlin Consulting

Intellectual Capital and the EFQM Business Excellence Model

Intellectual Capital has been recognised in the Business Excellence Model of the European Foundation for Quality Management, the development of which has been driven by leading European business organisations.

Over the last couple of years, the Excellence Model has undergone a major review, following eight years of significant use throughout Europe in business and the public and voluntary sectors. The improved model was approved in 1999, and now includes significant references to the concept of Intellectual Capital.

As before, the model is divided into a number of criterion parts, themselves grouped as either 'enablers' (of excellence) or results. The section dealing with enablers now includes a criterion for the management of information and knowledge, suggesting that organisations should cultivate, develop and protect unique intellectual assets in order to maximise customer and shareholder value.

A more significant reference is included in the business performance results area. The new model suggests that the value of Intellectual Capital should be one of the key performance indicators used in scoring an organisation.

Go to www.efqm.org for more information on the Excellence Model.