Using the EFQM Excellence Model to Improve Organisational Performance at the Squire Hotel Group

Background of the EFQM model

You are a member of the Executive Management Team for the Squire Hotel Group, The Chief Executive of this Group of hotels has recently attended an Executive Seminar on the EFQM Excellence Model and was impressed with the holistic approach that the model takes to managing, measuring and improving organisational performance.  

In view of this, the CEO has asked you to research, critically evaluate and make recommendations in a report to her on whether this EFQM Model can provide a framework for improving organisational performance at the Squire Hotel Group.  As part of this report, the CEO is interested to learn whether other service organisations are using this approach and how successful the approach has been in driving organisational improvement.   

·Background of the EFQM model

·Principles of total Quality Management

·Diagnosis of the case study

·Each box of the EFQM model should be talked about

·Balance scorecard model should be included

·Talk about if other organisations are using the EFQM model

·Potential benefits of implementing the model.

·The report will be marked according to the following main criteria:

·the extent to which managerial solutions to the business issues raised are well argued

·the use of appropriate sources of information (e.g. reputable business journals, research reports and academic journals)

·the degree to which the information put forward in the report is synthesised, critically evaluated and analysed

·the degree to which appropriate conclusions are derived from a critical evaluation of the main issues raised in the report

Other considerations include:

·clarity and structure of the arguments (formal report writing format with appropriate executive summary, introduction and conclusions)

·overall presentation, including spelling, grammar and punctuation.

The Squire Hotel Group (SHG) runs a chain of 20 hotels, with between 40 and 120 bedrooms, in locations that include Oxford, Warwick and Southport. SHG sees itself in the three-star market, with hotels that have their own personality and style, providing high quality food and service at an affordable price. The majority of mid-week guests are commercial clients. The normal mid-week occupancy rate is about 80 per cent.

I do not like the traditional counter arrangement, I like a simple, open and friendly situation with a clear desk to demonstrate our uncluttered and caring attitude. Even our computers are kept in a small room just off the lobby, out of sight. I want my guests to feel that they are important and not just one of the 70 that we are going to deal with that evening.

SHG’s hotel managers are totally responsible for their own operations. They set staff levels and wages within clear guidelines set by head of?ce. Although pricing policy is determined centrally, there is scope for adjustment, and they can negotiate with local ? rms or groups in consultation with head of?ce. Charles Harper  added:  

Every year, each hotel manager agrees the ?nancial targets for his own operation with head of?ce, and if the manager does not reach his target without good reason, he may well ? nd himself out of a job. I believe that it is my job to be constantly improving and developing this business. This is naturally re?ected in the yearly pro?t expectations.

The hotel managers report performance to the group monthly on four criteria: occupancy, pro? t, staff costs and food costs. The information provided allows senior managers to drill down to the costs of individual people and meals. Charles Harper explained:

We get very few complaints. Usually these are about the food, things like the temperature of the vegeta-bles, though recently we had a complaint from two elderly ladies about the juke-box in the bar. We don’t have any formal means of collecting information about quality. Head of? ce may come and check the hotel once or twice a year. We always know when they are coming and try to look after them. We don’t use com-plaints or suggestion forms in the bedrooms because I think it tends to get people to complain or question  the service. However, I do try to collect some information myself in order to get an indication from guests about how they feel about the quality or the price. I don’t document the results, but we know what is going on. Our aim is to prevent complaints by asking and acting during the service.