ARE THE BALANCED SCORECARD AND THE EFQM EXCELLENCE MODEL MUTUALLY EXCLUSIVE OR DO THEY WORK TOGETHER TO BRING ADDED VALUE TO A COMPANY

Are the Balanced Scorecard and the EFQM Excellence Model mutually exclusive? Both approaches are often quoted as being two alternative ways of measuring performance, and organisations frequently ask whether use of one of these tools precludes the use of the other. If a choice has to be made between the two models, how can a company choose what is right for them? Are they mutually exclusive, or are they interchangeable or neither? To be able to answer those questions with some insight and to distinguish the unique and complementary values of each model, we need a more in-depth account of how the models differ in approach, process and benefits. In doing so, we hope to provide organisations with a more comprehensive basis to make an informed decision to adopt either, both or neither of the two models. With this paper we intend not only to help the novice organisations appreciate better the benefits of each model, but also to allow those organisations currently using one of the tools to see where there may be added value in investing in the other. The paper is organised as follows: First we introduce the concepts and benefits sought in using each of the models. We then illustrate in further depth the characteristics of each of the models, pointing out their key points of difference. Once we’ve established and illustrated the distinct value of each of the Balanced Scorecard and Excellence Models, we suggest how the two can come together in a powerful combination. We feel this combination is of value because, on the one hand, both approaches share a common philosophy about management, and on the other, each addresses measuring and managing an organisation’s performance in different ways. Illustrations are provided to describe the models individually and together.