Purpose – Virtual Organization would be any organization with non-co-located organizational entities and resources, using virtual space for interactions between staff to achieve organizational objectives. The purpose of this thesis is to develop an Excellence model for Virtual Organizations. We chose “European foundation for productivity management model (EFQM)” as the latest expression of TQM which is the dominant approach of Excellence. To create a complete model we first designed a conceptual model in the same culture of EFQM. In the second step we determined factors, their weights and sub-criteria. We developed the Virtual Organization Excellence model as a roadmap for Virtual Organizations to move toward excellence and also being an aid for contractors in measuring and improving their business performance. This model also could be a tool for assessor to analyze this new generation of organizations. Last step was determining the fundamental values and RADAR measuring framework. Design/methodology – This study adopted a pluralist approach including, Extensive literature review, Field experiment, in depth interviews and Survey questionnaire to develop the Virtual Organization excellence model. Findings – The criteria and sub-criteria of the Virtual Organization excellence model were confirmed using empirical data, and the fundamental values and criterion weights were suggested. Value of study – As VOs are the future of firms, main benefit of the Virtual Organization excellence model (VOEM) is that it provides a productivity roadmap for a Virtual firms that developed and evaluated by Virtual Organization experts.