Strategic Transformation and Sustainability: Unveiling the EFQM Model 2025

Abstract

The EFQM Model (European Foundation for Quality Management), established in 1991, serves as a framework for organizational excellence, helping achieve sustainable success through an integrated management system. The Model’s evolution is driven by the need to adapt to global trends, threats, and technological innovations such as digital transformation, employee engagement and well-being, remote work, agile performance management, diversity, equity and inclusion (DEI), sustainability, AI (Artificial Intelligence), and big data. The new EFQM Model 2025, presented in Istanbul in June 2024, introduces significant changes, emphasizing sustainability, innovation, and technology. These changes are analyzed based on the logic of three questions: Why, How, and What. Why: There is a necessity for better alignment of organizations with contemporary challenges through flexibility, risk resilience, and innovation capabilities in a dynamic business environment, including alignment with the Unated Nations Sustainable Development Goals (SDGs). How: The Model introduces an integrated approach to performance management and transformation, incorporating advanced technologies such as AI and data analytics. What: Implementing the EFQM Model 2025 enhances organizational adaptability, innovation, and flexibility, improving financial, operational, and strategic outcomes. Better alignment with sustainability goals leads to long-term value and social responsibility. Improved stakeholder engagement methods enhance understanding and satisfaction. The use of advanced technologies supports innovation and operational efficiency, while better strategic and operational performance and risk management ensure greater stability and the ability to anticipate future challenges.