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Quality Management

EFQM | Service Level Agreement | Supplier Audit

European Foundation for Quality Management

What is the EFQM model?

The model tells us that "customer satisfaction", "people (employee) satisfaction" and "impact on society" are achieved though "leadership" which drives the "policy and strategy", "people management", "resources" and "processes", leading to excellence in "business results". Each of the nine elements, therefore, is a criterion that can be used to assess the organisation's progress along the path to excellence. The "results" indicate what the company has achieved and is achieving; the "enablers" indicate how those results are being achieved.

The EFQM model

Click for full EFQM Model

What do the nine elements of the EFQM model mean?

Leadership - How the behaviour and actions of the executive team and all other leaders inspire, support and promote a culture of Total Quality Management.

Policy and Strategy - How the organisation formulates, deploys, reviews its policy and strategy and turns it in to plans and actions.

People Management - How the organisation releases the full potential of its people.

Resources - How the organisation manages resources effectively and efficiently.

Processes - How the organisation identifies, manages, reviews and improves its processes.

Customer Satisfaction - What the organisation is achieving in relation to the satisfaction of its external customers.

People Satisfaction - What the organisation is achieving in relation to the satisfaction of its people.

Impact on Society - What the organisation is achieving in satisfying the needs and the expectations of the local, national and international community at large (as appropriate).

Business Results - What the organisation is achieving in relation to its planned business objectives and in satisfying the needs and expectations of everyone with a financial interest or stake in the organisation.

Service Level Agreement

What is a Service Level Agreement (SLA)?

In an increasingly complex business environment, many medium and large companies suffer from a lack of organisational and/or departmental definition, due to constant change and reorganisation. Such events frequently result in unclear roles and are often the source of negative business impacting incidents. SLAs provide clarity and definition where there may previously have been confusion and excessive bureaucracy. The SLA is the key to setting the users' service expectations.

How can H.D. Management help you define SLAs?

It is essential that the formulation of SLAs has Senior Management 'buy-in' for effective use and maintenance. H.D. Management consultants recover information from all relevant parties within an organisation through a mixture of interviews and investigatory work. The SLA is then defined and documented in a fashion tailored to client requirements, tempered by the extensive experience our consultants have acquired in documenting SLAs for some of Britain's largest blue-chip organisations.

How will SLAs benefit you?

SLAs provide both the purchaser and the supplier (internal and external) with:

  • Concise definitions of roles and responsibilities
  • Clarification of organisational structure
  • Identification of weak performance areas
  • Clear definitions of service function as well as service process
  • Independent definition of purchaser and supplier requirements
  • A defined standard against which to measure supplier (and purchaser) performance

Supplier Audit

What is a Supplier Audit?

A Supplier, or 2nd Party Audit, is the audit of a supplier's service to its customer against a defined benchmark or standard (e.g. the SLA or ISO 9001). It may also include an audit of the supplier's internal management system, which would normally include an on-site audit of the supplier's premises.

What is H.D. Management's approach to Supplier Auditing?

H.D. Management can conduct a Supplier Audit on behalf of the customer, producing a comprehensive audit report against defined customer requirements. On occasion, it may be that both customer and supplier alike may require an independent audit of the service provided from supplier to customer, where H.D. Management are the 3rd Party auditors. H.D. Management consultants include a number of registered Lead Auditors who have many years experience of conducting this form of audit.

How will a Supplier Audit benefit you?

A Supplier Audit provides you with:

  • An independent (3rd Party) verification of the supplier/customer relationship
  • A precise measurement of supplier performance against an agreed standard (e.g. SLA/ISO 9001)
  • A clear indication of the level of service you receive from a supplier

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