Baldrige Performance Baldrige Performance Excellence ProgramExcellence Program

By: MBA, Sajad NazariBy: MBA, Sajad Nazari

Janus Aries SimbilloJanus Aries Simbillo

nazary_sajjad@yahoo.comnazary_sajjad@yahoo.com

What is the Baldrige What is the Baldrige Program?Program?

► Operates as a unique public-private Operates as a unique public-private partnershippartnership

► Educates organizations on performance Educates organizations on performance excellence managementexcellence management

► Manages the Malcolm Baldrige National Manages the Malcolm Baldrige National Quality AwardQuality Award

Baldrige is Performance Excellence: Baldrige is Performance Excellence:

Organizations Achieve and the U.S. Organizations Achieve and the U.S.

SucceedsSucceeds

PurposePurpose

► It enhances the competitiveness, quality, and It enhances the competitiveness, quality, and productivity of U.S. organizations for the productivity of U.S. organizations for the benefit of all citizens.benefit of all citizens.

► It develops and disseminates evaluation It develops and disseminates evaluation criteria and manages the Malcolm Baldrige criteria and manages the Malcolm Baldrige National Quality Award in close cooperation National Quality Award in close cooperation with the private sector. with the private sector.

► It also provides global leadership in It also provides global leadership in promoting performance excellence and in the promoting performance excellence and in the learning and sharing of successful learning and sharing of successful performance practices, principles, and performance practices, principles, and strategies. strategies.

HistoryHistory

The Malcolm Baldrige National Quality The Malcolm Baldrige National Quality Improvement Act of 1987, Public Law 100-107Improvement Act of 1987, Public Law 100-107

► Created Award Program toCreated Award Program to identify/recognize role-model businessesidentify/recognize role-model businesses establish criteria for evaluating improvement effortsestablish criteria for evaluating improvement efforts disseminate/share best practices disseminate/share best practices

► Expanded to health care and education (1998)Expanded to health care and education (1998)► Expanded to nonprofit (+ Government) sector – Expanded to nonprofit (+ Government) sector –

(2005)(2005)

The Man BehindThe Man Behind

► Howard Malcolm Baldrige, Jr. (October 4, 1922 – July 25, 1987) Howard Malcolm Baldrige, Jr. (October 4, 1922 – July 25, 1987) was the 26th United States Secretary of Commerce.was the 26th United States Secretary of Commerce.

► During his tenure, Baldrige played a major role in developing and During his tenure, Baldrige played a major role in developing and carrying out Administration trade policy. carrying out Administration trade policy.

► He took the lead in resolving difficulties in technology transfers He took the lead in resolving difficulties in technology transfers with China and India.with China and India.

► He held the first Cabinet-level talks with the Soviet Union in He held the first Cabinet-level talks with the Soviet Union in seven years which paved the way for increased access for U.S. seven years which paved the way for increased access for U.S. firms to the Soviet market.firms to the Soviet market.

► Leading the Administration's effort to pass the Export Trading Leading the Administration's effort to pass the Export Trading Company Act of 1982, Baldrige was named by the President to Company Act of 1982, Baldrige was named by the President to chair a Cabinet-level Trade Strike Force to search out unfair chair a Cabinet-level Trade Strike Force to search out unfair trading practices and recommend ways to end those practices. trading practices and recommend ways to end those practices.

► Baldrige's award-winning managerial excellence contributed to Baldrige's award-winning managerial excellence contributed to long-term improvement in economy, efficiency, and effectiveness long-term improvement in economy, efficiency, and effectiveness in government. Within the Commerce Department, Baldrige in government. Within the Commerce Department, Baldrige reduced the budget by more than 30% and administrative reduced the budget by more than 30% and administrative personnel by 25%. personnel by 25%.

► Baldrige died July 25, 1987, in John Muir Hospital, Walnut Creek, Baldrige died July 25, 1987, in John Muir Hospital, Walnut Creek, California, after a rodeo accident in Brentwood, Contra Costa California, after a rodeo accident in Brentwood, Contra Costa County, in Northern California. County, in Northern California.

Performance ExcellencePerformance Excellence

An integrated An integrated approachapproach to organizational to organizational performance management that performance management that resultsresults inin delivery of ever-improving value to delivery of ever-improving value to

customers and stakeholders, contributing to customers and stakeholders, contributing to organizational sustainability organizational sustainability

improvement of overall organizational improvement of overall organizational effectiveness and capabilitieseffectiveness and capabilities

organizational and personal learningorganizational and personal learning

Program ParticipantsProgram Participants

►86 Award recipients (91 Awards)86 Award recipients (91 Awards)►1,458 Baldrige Award applications1,458 Baldrige Award applications►More than 5,800 trained ExaminersMore than 5,800 trained Examiners►Widespread participationWidespread participation►Private-sector contributions provide Private-sector contributions provide

over 90 percent of Program supportover 90 percent of Program support

Award Recipients’ Award Recipients’ ContributionsContributions

► Increase competitiveness of U.S. Increase competitiveness of U.S. organizationsorganizations

►Give presentations to all sectors Give presentations to all sectors ►Give presentations at The Quest for Give presentations at The Quest for

Excellence® and the regional Excellence® and the regional conferencesconferences

► Influence customers/suppliersInfluence customers/suppliers►Host seminars and workshopsHost seminars and workshops►Write articlesWrite articles

Applying for the Baldrige Applying for the Baldrige AwardAward

►ManufacturingManufacturing►ServiceService►Small business (manufacturing or Small business (manufacturing or

service)service)►Education (for-profit and nonprofit)Education (for-profit and nonprofit)►Health care (for-profit and nonprofit)Health care (for-profit and nonprofit)►Nonprofit, including charities and Nonprofit, including charities and

government agenciesgovernment agencies

The Baldrige CriteriaThe Baldrige Criteria

► Are considered a validated organizational performance Are considered a validated organizational performance

assessment tool assessment tool

► Define performance excellenceDefine performance excellence

► Are used to identify Award recipientsAre used to identify Award recipients

► Are used by diverse organizations in all sectors of the U.S. Are used by diverse organizations in all sectors of the U.S.

economyeconomy

► Comprise an Organizational Profile and seven Categories—an Comprise an Organizational Profile and seven Categories—an

integrated management framework integrated management framework ► Are updated regularly (currently every two years)Are updated regularly (currently every two years)

Seven Categories of the Seven Categories of the Business/Nonprofit CriteriaBusiness/Nonprofit Criteria

►LeadershipLeadership►Strategic PlanningStrategic Planning►Customer FocusCustomer Focus►Measurement, Analysis, and Measurement, Analysis, and

Knowledge ManagementKnowledge Management►Workforce FocusWorkforce Focus►Process ManagementProcess Management►ResultsResults

Core Values and ConceptsCore Values and Concepts

► Visionary LeadershipVisionary Leadership An organization’s senior leaders have a central An organization’s senior leaders have a central

role in setting directions and creating a customer role in setting directions and creating a customer focus. They must convey clear and visible values focus. They must convey clear and visible values and high expectations.and high expectations.

► Customer-Driven ExcellenceCustomer-Driven Excellence Performance and quality are judged by an Performance and quality are judged by an

organization’s customers.organization’s customers.► Organizational and Personal LearningOrganizational and Personal Learning

Organizational learning refers to continuous Organizational learning refers to continuous improvement of existing approaches and improvement of existing approaches and significant change or innovation, leading to new significant change or innovation, leading to new goals and approaches.goals and approaches.

Core Values and ConceptsCore Values and Concepts► Valuing Workforce Members and PartnersValuing Workforce Members and Partners

An organization’s success depends increasingly on an engaged An organization’s success depends increasingly on an engaged workforce and on the diverse backgrounds, knowledge, skills, workforce and on the diverse backgrounds, knowledge, skills, creativity, and motivation of its workforce and partners.creativity, and motivation of its workforce and partners.

► AgilityAgility Success in today’s ever-changing, globally competitive Success in today’s ever-changing, globally competitive

environment demands agility—a capacity for rapid change and environment demands agility—a capacity for rapid change and flexibility.flexibility.

► Focus on the FutureFocus on the Future The pursuit of sustainable growth and sustained performance The pursuit of sustainable growth and sustained performance

leadership requires a strong future orientation and a willingness leadership requires a strong future orientation and a willingness to make long-term commitments to key stakeholdersto make long-term commitments to key stakeholders

► Managing for InnovationManaging for Innovation Innovation is no longer strictly the purview of research and Innovation is no longer strictly the purview of research and

development departments.development departments.

Core Values and ConceptsCore Values and Concepts► Management by FactManagement by Fact

Performance improvement requires measurement and analysis.Performance improvement requires measurement and analysis.► Societal ResponsibilitySocietal Responsibility

Leaders should stress responsibilities to the public, ethical Leaders should stress responsibilities to the public, ethical behavior, and the need to consider societal well-being and behavior, and the need to consider societal well-being and benefit, which refers to leadership and support—within the limits benefit, which refers to leadership and support—within the limits of an organization’s resources—of publicly important purposes.of an organization’s resources—of publicly important purposes.

► Focus on Results and Creating ValueFocus on Results and Creating Value Results should be used to create and balance value for your key Results should be used to create and balance value for your key

stakeholders.stakeholders.► Systems PerspectiveSystems Perspective

A systems perspective means managing the whole organization, A systems perspective means managing the whole organization, as well as its key processes, to achieve results—and strive for as well as its key processes, to achieve results—and strive for performance excellence.performance excellence.

Baldrige Criteria Framework: Baldrige Criteria Framework:

A Systems PerspectiveA Systems Perspective

Steps Toward Mature Steps Toward Mature ProcessesProcesses

Organizational ProfileOrganizational Profile

P.1 Organizational DescriptionP.1 Organizational Description

P.2 Organizational SituationP.2 Organizational Situation

►Starting point for self-assessment and Starting point for self-assessment and application preparationapplication preparation

►Basis for early action planningBasis for early action planning

Category Point ValuesCategory Point Values11 LeadershipLeadership

120120

22 Strategic PlanningStrategic Planning 85 85

33 Customer FocusCustomer Focus 8585

44 Measurement, Analysis, and Measurement, Analysis, and

Knowledge ManagementKnowledge Management 90 90

55 Workforce FocusWorkforce Focus 85 85

66 Process ManagementProcess Management 8585

77 ResultsResults 450450

TOTAL POINTSTOTAL POINTS 1,000 1,000

1. Leadership (120 pts.) 1. Leadership (120 pts.)

Addresses Senior Leaders’ Actions, Governance, and Addresses Senior Leaders’ Actions, Governance, and Societal ResponsibilitiesSocietal Responsibilities

► 1.1 Senior Leadership (70 pts.)1.1 Senior Leadership (70 pts.) Asks “How do your senior leaders lead?”Asks “How do your senior leaders lead?” ItIt focuses on how senior leaders set organizational vision and focuses on how senior leaders set organizational vision and

values; create an environment that fosters, requires, and results values; create an environment that fosters, requires, and results in legal and ethical behavior; create a sustainable organization; in legal and ethical behavior; create a sustainable organization; and create an environment for organizational improvement.and create an environment for organizational improvement.

► 1.2 Governance and Societal Responsibilities 1.2 Governance and Societal Responsibilities (50 pts.) (50 pts.) Asks “How do you govern and fulfill your societal Asks “How do you govern and fulfill your societal

responsibilities?”responsibilities?” It examines several key aspects of your organization’s It examines several key aspects of your organization’s

governance system and approach to leadership.governance system and approach to leadership.

2. Strategic Planning (85 2. Strategic Planning (85 pts.)pts.)

Addresses Strategic and Action Planning and Addresses Strategic and Action Planning and Deployment of PlansDeployment of Plans

► 2.1 Strategy Development (40 pts.)2.1 Strategy Development (40 pts.) Asks “How do you develop your strategy?”Asks “How do you develop your strategy?” It examines how your organization establishes its strategy It examines how your organization establishes its strategy

to address its strategic objectives and leverage its to address its strategic objectives and leverage its strategic advantages.strategic advantages.

► 2.2 Strategy Implementation (45 pts.)2.2 Strategy Implementation (45 pts.) Asks “How do you deploy your strategy?”Asks “How do you deploy your strategy?” It examines how your organization converts its strategic It examines how your organization converts its strategic

objectives into action plans to accomplish these objectives objectives into action plans to accomplish these objectives and how it deploys and assesses progress on its action and how it deploys and assesses progress on its action plans.plans.

3.Customer Focus (85 3.Customer Focus (85 pts.)pts.)

Addresses How an Organization Engages Addresses How an Organization Engages its Customers and Listens to the its Customers and Listens to the Voice of the Customer Voice of the Customer

► 3.1 Voice of the Customer (45 pts.)3.1 Voice of the Customer (45 pts.) Asks “How do you engage customers to serve their needs Asks “How do you engage customers to serve their needs

and build relationships?”and build relationships?” It asks how your organization determines product It asks how your organization determines product

offerings and mechanisms to support customers’ use of offerings and mechanisms to support customers’ use of your products.your products.

► 3.2 Customer Engagement (40 pts.)3.2 Customer Engagement (40 pts.) Asks “How do you obtain and use information from your Asks “How do you obtain and use information from your

customers?”customers?” It examines how your organization listens to its It examines how your organization listens to its

customers, acquires satisfaction and dissatisfaction customers, acquires satisfaction and dissatisfaction information, and uses customer information to improve its information, and uses customer information to improve its marketplace success.marketplace success.

4. Measurement, Analysis, and 4. Measurement, Analysis, and Knowledge Management (90 Knowledge Management (90

pts.)pts.)Addresses Analysis, Review, and Improvement of Addresses Analysis, Review, and Improvement of

Organizational Performance and Management of Organizational Performance and Management of Data, Knowledge, and Information ResourcesData, Knowledge, and Information Resources

► 4.1 Measurement, Analysis, and Improvement of 4.1 Measurement, Analysis, and Improvement of Organizational Performance (45 pts.) Organizational Performance (45 pts.)

Asks “How do you measure, analyze, and then improve Asks “How do you measure, analyze, and then improve organizational performance?”organizational performance?”

It covers your performance data and information at all levels It covers your performance data and information at all levels and in all parts of the organization.and in all parts of the organization.

► 4.2 Management of Information, Knowledge, and4.2 Management of Information, Knowledge, and Information Technology (45 pts.) Information Technology (45 pts.) Asks “How do you manage your information, organizational Asks “How do you manage your information, organizational

knowledge, and information technology?”knowledge, and information technology?” It addresses the availability and quality of needed data, It addresses the availability and quality of needed data,

information, hardware, and software for your workforce, information, hardware, and software for your workforce, suppliers, partners, collaborators, and customers.suppliers, partners, collaborators, and customers.

5. Workforce Focus (85 5. Workforce Focus (85 pts.) pts.)

Addresses How an Organization Engages, Addresses How an Organization Engages, Develops, and Manages Its Workforce and Develops, and Manages Its Workforce and Builds an Effective Workforce EnvironmentBuilds an Effective Workforce Environment

► 5.1 Workforce Environment (40 pts.)5.1 Workforce Environment (40 pts.) Asks “How do you engage your workforce to achieve Asks “How do you engage your workforce to achieve

organizational and personal success?”organizational and personal success?” It examines how your organization engages, compensates, It examines how your organization engages, compensates,

and rewards your workforce to achieve high performance.and rewards your workforce to achieve high performance.► 5.2 Workforce Engagement (45 pts.)5.2 Workforce Engagement (45 pts.)

Asks “How do you build an effective and supportive Asks “How do you build an effective and supportive workforce environment?”workforce environment?”

It addresses how your organization manages workforce It addresses how your organization manages workforce capability and capacity to accomplish its work and how it capability and capacity to accomplish its work and how it maintains a safe, secure, and supportive work climate.maintains a safe, secure, and supportive work climate.

6. Process Management (85 6. Process Management (85 pts.)pts.)

Addresses How an Organization Designs Its Work Addresses How an Organization Designs Its Work Systems; Prepares for Emergencies; and Designs, Systems; Prepares for Emergencies; and Designs, Manages, and Improves Its Work Processes Manages, and Improves Its Work Processes

► 6.1 Work Systems (45 pts.)6.1 Work Systems (45 pts.) Asks “How do you design your work systems?”Asks “How do you design your work systems?” It addresses how your organization designs its work systems It addresses how your organization designs its work systems

and determines its key processes to deliver customer value, and determines its key processes to deliver customer value, prepare for potential emergencies, and achieve organizational prepare for potential emergencies, and achieve organizational success and sustainability. success and sustainability.

► 6.2 Work Processes (40 pts.)6.2 Work Processes (40 pts.) Asks “How do you design, manage, and improve your key Asks “How do you design, manage, and improve your key

organizational work processes?”organizational work processes?” It examines how your organization designs, implements, It examines how your organization designs, implements,

manages, and improves its key work processes to deliver manages, and improves its key work processes to deliver customer value and achieve organizational success and customer value and achieve organizational success and sustainability.sustainability.

7. Results (450 pts.)7. Results (450 pts.)

Addresses an Organization’s Performance Addresses an Organization’s Performance and Improvement in Key Areas and and Improvement in Key Areas and Includes Includes Current Performance Levels, Trends, and Current Performance Levels, Trends, and Comparative DataComparative Data

► 7.1 Product and Process Outcomes (100 pts.) 7.1 Product and Process Outcomes (100 pts.) Asks “What are your product performance results?”Asks “What are your product performance results?” It also asks for segmented results and appropriate It also asks for segmented results and appropriate

comparative data.comparative data.► 7.2 Customer-Focused Outcomes (90 pts.)7.2 Customer-Focused Outcomes (90 pts.)

asks “What are your customer-focused performance asks “What are your customer-focused performance results?”results?”

It examines results for customer satisfaction, It examines results for customer satisfaction, dissatisfaction, and engagement.dissatisfaction, and engagement.

7. Results (450 pts.)7. Results (450 pts.)

► 7.3 Financial and Market Outcomes (80 pts.)7.3 Financial and Market Outcomes (80 pts.) Asks “What are your financial and marketplace Asks “What are your financial and marketplace

performance results?”performance results?” These results might include aggregate measures of These results might include aggregate measures of

financial return, measures of financial viability or financial return, measures of financial viability or budgetary performance, and measures of marketplace budgetary performance, and measures of marketplace performance, such as market share or position, market or performance, such as market share or position, market or market share growth, and new markets entered.market share growth, and new markets entered.

► 7.4 Workforce-Focused Outcomes (80 pts.) 7.4 Workforce-Focused Outcomes (80 pts.) Asks “What are your workforce-focused performance Asks “What are your workforce-focused performance

results?”results?” It examines results relating to workforce engagement and It examines results relating to workforce engagement and

satisfaction, workforce and leader development, workforce satisfaction, workforce and leader development, workforce capability and capacity, and the workforce climate.capability and capacity, and the workforce climate.

7. Results (450 pts.)7. Results (450 pts.)

► 7.5 Process Effectiveness Outcomes (20 pts.)7.5 Process Effectiveness Outcomes (20 pts.) Asks “What are your process effectiveness results?”Asks “What are your process effectiveness results?” It examines your key operational performance results that It examines your key operational performance results that

contribute to the achievement of organizational contribute to the achievement of organizational effectiveness, including your organization’s readiness for effectiveness, including your organization’s readiness for emergencies.emergencies.

► 7.6 Leadership and Governance Outcomes (80 pts.)7.6 Leadership and Governance Outcomes (80 pts.) Asks “What are your leadership results?”Asks “What are your leadership results?” It examines your organization’s key governance and senior It examines your organization’s key governance and senior

leadership results, including evidence of strategic plan leadership results, including evidence of strategic plan accomplishments, fiscal accountability, legal compliance, accomplishments, fiscal accountability, legal compliance, ethical behavior, societal responsibility, and support of key ethical behavior, societal responsibility, and support of key communities.communities.

Program AchievementsProgram Achievements

►Created a national and international Created a national and international standard for performance excellencestandard for performance excellence

►Produced role modelsProduced role models

►Shared best management practicesShared best management practices

►Generated award programsGenerated award programs

►Raised U.S. competitiveness Raised U.S. competitiveness

►Established outreach and education Established outreach and education systemssystems

2012 Baldrige Award Recipients2012 Baldrige Award Recipients

►Lockheed Martin Missiles and Fire Lockheed Martin Missiles and Fire ControlControl, Grand Prairie, Texas , Grand Prairie, Texas (manufacturing)(manufacturing)

►MESA Products Inc.MESA Products Inc., Tulsa, Okla. , Tulsa, Okla. (small business)(small business)

►North Mississippi Health ServicesNorth Mississippi Health Services, , Tupelo, Miss. (health care)Tupelo, Miss. (health care)

►City of IrvingCity of Irving, Irving, Texas (nonprofit), Irving, Texas (nonprofit)

Improvement ToolsImprovement Tools

►These improvement tools are These improvement tools are complementary, not mutually complementary, not mutually exclusive. For example, Baldrige, exclusive. For example, Baldrige, Lean, and Six Sigma allLean, and Six Sigma all focus on resultsfocus on results use a team approachuse a team approach require management by factrequire management by fact are customer- and market-focusedare customer- and market-focused require strong leadership for  long-term require strong leadership for  long-term

effectivenesseffectiveness

DifferencesDifferences

► the Baldrige Criteria serve as a the Baldrige Criteria serve as a comprehensive framework for performance comprehensive framework for performance excellence. They focus on business results excellence. They focus on business results as well as organizational improvement and as well as organizational improvement and innovation innovation systemssystems. .

► Lean and Six Sigma methodologies drive Lean and Six Sigma methodologies drive waste and inefficiencies out of waste and inefficiencies out of processes.processes.

► ISO 9000 is a series of ISO 9000 is a series of standardsstandards for an  for an efficient quality conformance system. efficient quality conformance system.

► Overall, ISO 9000 registration covers less Overall, ISO 9000 registration covers less than 10 percent of the Baldrige Criteria. than 10 percent of the Baldrige Criteria.

Integration of the Baldrige Integration of the Baldrige Criteria and Other Improvement Criteria and Other Improvement

ToolsTools►use Baldrige to develop an overall use Baldrige to develop an overall

performance map, identify areas for performance map, identify areas for improvement, and track resultsimprovement, and track results

►use Six Sigma, Lean, or other tools to use Six Sigma, Lean, or other tools to design operations or improve design operations or improve processesprocesses

“Don't lower your expectations to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.”Ralph Marston