Excellent organisations diversely and comprehensively measure and achieve outstanding results with respect to the key elements of their policy and strategy.
One of the key characteristics of organisational excellence in the EFQM Excellence Model is results orientation. Excellent organisations measure results, anticipate the needs and expectations of customers and key shareholders as well as changes in the operating environment, developing their operations on the basis of results. A successful and viable organisation also achieves the objectives it has set for itself.
Strategic objectives and performance
Key performance results should be related to the educational organisation’s basic role as determined in its policy and strategy and to the objectives set for it. Performance indicators are selected on the basis of each organisation’s own strategic objectives. These indicators describe results that are essential in terms of the organisation’s long- and short-term success. The results are used to evaluate the organisation’s serviceability and performance, operational development, efficiency and effectiveness. The results should cover relevant areas in terms of operations and they should be clearly linked to operations. In addition to achievement of basic tasks and strategic objectives (9a), the organisation should measure its internal performance (9b), i.e. the efficiency and effectiveness of its key processes. Performance results are divided into non-financial (those relating to key objectives) and financial results. Financial measures are used to assess financial results and economical and efficient use of resources.
Provision of education and training is regulated by national strategies and legislation. Consequently, the operations of educational institutions are largely based on objectives derived from both national and local needs. In addition to its owner’s expectations, an educational organisation should also take account of the requirements and expectations set by its operating environment. In addition, the objectives of vocational education and training are usually set on the basis of working life needs, taking specific regional characteristics into account. At an institutional level, objectives may be local, national or international (such as prevention of social exclusion).
Performance indicators and outcomes
Key performance indicators and outcomes
Key performance indicators and outcomes (9a) are related to provision of education and training in accordance with an educational organisation’s basic role and achievement of the key objectives set in the institution’s financial and operational plan and curricula. Performance may be related to the quality of service processes, cost-efficiency, the organisation’s ability to meet the needs of customers and key stakeholders, innovativeness of the organisation’s strategies, structures and processes or fulfilment of requirements such as quality standards and service commitments.
Performance indicators relating to the basic role include
- learning outcomes
- duration of education
- employment rate or further studies upon completion of a qualification
- attractiveness of education and training.
Financial performance can be measured through indicators such as
- achievement of the targeted results
- efficient use of operating funds
- levels of external funding
- investments
- the results of financial audits.
Internal performance
Indicators describing internal performance, i.e. process efficiency (9b) are used to assess, anticipate and develop the efficiency of core processes (such as learning and student counselling processes) as well as support processes. The indicators may be related to areas such as quality of the learning environment, student welfare services, functionality of information collection and feedback systems or effectiveness of co-operation with representatives of working life.
Indicators describing processes at educational institutions include
- the occupancy rate of student places
- the number of applicants per student place
- student-teacher ratio
- drop-out rate
- the number of students completing their qualifications within the standard time
- the pass rate for skills demonstrations
- post-study employment
- income generated from commercial services
- extra sources of funding.