So You Want to Use the Baldrige Criteria?
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Transcript of So You Want to Use the Baldrige Criteria?
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So You Want to Use the Baldrige Criteria?
Prepared for TNCPE Customersby Dan Jordan
2009/2010 Criteria
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Using the Baldrige Criteria
• Organizational Profile (Level 1 Application)
• Core Values
• Categories (Level 2 Application)
• Items and Areas to Address (Level 3 and Level 4 Applications)
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Organizational Profile
Purpose• Provides an overview of your organization• Helps to better understand
– The context in which your organization operates
– Key requirements for current and future business success and sustainability
– The needs, opportunities and constraints placed on your organization’s performance management system
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Organizational Profile
P.1 Organizational Description
• Key organizational characteristics
• Key Relationships
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Organizational Profile
P.1 Organizational Description• P.1a Organizational Environment
– What do you do?• Product offerings – goods and services offered
– Who are you? Why do you exist? • Culture – shared set of attitudes, values• Core competencies – areas of greatest expertise
– Workforce• Distinguishing traits• Requirements
– Facilities and equipment– Regulatory environment – health, safety, accreditation,
certification, and/or registration
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Organizational Profile
P.1 Organizational Description• P.1b Organizational Relationships
– Stockholders (Governance)– Customers / stakeholders
• Grouping or differentiation • Requirements
– Supply chain• Suppliers, partners, collaborators• Means of communication• Role in innovation• Supply chain requirements
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Organizational Profile
P.2 Organizational Challenges• P.2a Competitive Environment
– How do you know how you stack up? (Competitors)
– What factors differentiate you from your competitors?
– Where do you get comparative and competitive data?
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Organizational Profile
P.2 Organizational Challenges• P.2b Strategic Context
– Strategic challenges– Strategic advantages
• P.2c Performance Improvement System– Linked to Organizational Learning– How do you systematically improve?
(Should be data based)– Linked to assessment of maturity
(Look at Scoring Guidelines)
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Strategic Advantages
• Marketplace benefits exerting a decisive influence on an organization’s likelihood of success
• Sources of current and future competitive success
• Can come from:– Core competencies– Strategically important external
resources
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Force Field Examples
Obje
ctives
Benefits
Strategic Advantages
Benefits
Benefits
Pressures
Pressures
Strategic Challenges
Help you achieve
your objectives
Hinder your efforts to
achieve your objectives
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Governance
• System of management and controls exercised in the stewardship of your organization
• Ensures: – accountability to stakeholders, – transparency of operations, – fair treatment of all stakeholders
• Includes the performance evaluation of senior leaders and members of the governance board
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Core Values
• Visionary Leadership• Customer-Driven Excell
ence• Organizational & Perso
nal Learning• Valuing Workforce Mem
bers and Partners• Agility
• Focus on the Future• Managing for Innovation• Management by Fact• Societal Responsibility• Focus on Results and C
reating Value• Systems Perspective
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Visionary Leadership
• Set directions• Create customer value• Create clear and visible values• Create high expectations• Personal involvement with workforce
– Inspire, Motivate, Encourage– To contribute, develop and learn, be
innovative
• Serve as role models
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Customer-Driven Excellence
• Know what contributes value to customers– Product & service features and characteristics– Modes of customer access
• Look at current and future components– How? Market surveys, focus groups, periodicals, customers
of customers
• Understand factors that may influence customer overall experience (face of the organization)
• Recovering from defects• Features and characteristics that differentiate from
competitors• Directed toward customer retention, loyalty, market
share gain, and growth
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Value
• Perceived worth of a product, service, process, asset, or function relative to cost and to possible alternatives
• Relative worth, utility, or importance
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Organizational & Personal Learning
• Well-executed approach – includes sharing knowledge via systematic processes
• Includes continuous improvement and significant change
• Embedded– Regular part of daily work– Practiced at all levels– Results in solving root cause– Build and share knowledge– Driven by opportunities to effect significant
meaningful change
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Organizational & Personal Learning
• Depends on having opportunities for personal learning and developing and practicing new skills
• Directed toward– Better products and services– Being a more responsive organization– Being more adaptive– Being more innovative– Being more efficient
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Valuing Workforce Members & Partners
• Valuing people means– Committing to engagement– Satisfaction– Development– Well-being
• Partners (Internal and External)– Established to better accomplish overall goals– Blending of core competencies or leadership capabilities– Develop longer term objectives– Address key requirements for success
• Regular communication• Approach to evaluate progress• Means for adapting to change
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Engagement
• Commitment, both emotional and intellectual, to accomplishing the work, mission, and vision of the organization
• Engaged workforce find personal meaning and motivation in their work and receive positive interpersonal and workplace support
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Agility
• Capacity for rapid change and flexibility
• Cycles for introduction of new / improved products and services
• Vital asset: cross-trained and empowered workforce
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Empowered
Giving people the knowledge, authority and responsibility to make decisions and take actions to create desired results
Accountability
Knowledge
Resp
on
sib
ilit
y
Results
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Focus on the Future
• Understanding of short- and longer-term factors that affect organization and marketplace
• Requires strong future orientation
• Requires willingness to make long-term commitments to key stakeholders
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Focus on the Future
• Included in planning – anticipate customer expectations, new business opportunities, workforce needs, technological development, new business models
• Strategic objectives and resource allocations needed to allow for future influences
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Focus on the Future
• Includes– Developing leaders, workforce, and
suppliers– Accomplishing effective succession
planning– Creating opportunities for innovation– Anticipating public responsibilities and
concerns
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Managing for Innovation
• Meaningful change to improve– Products,
– Services,
– Programs,
– Processes,
– Operations, and
– Business model to create new value for stakeholders
• Part of learning culture
• Integrated into daily work
• Supported by performance improvement system
• Builds on accumulated knowledge of organization and its people
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Innovation
• Making meaningful change to improve products, programs, services, processes or organizational effectiveness and to create new value for stakeholders
• Involves the adoption of an idea, process, technology, or product that is either new or new to its proposed application
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Management by Fact (1)
• Measurements– Derived from business need and
strategy– Provide critical data and information
about key processes, outputs and results
– Needed for performance management– Data should be segmented to facilitate
analysis
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Management by Fact (2)
• Analysis– Extract larger meaning from data and
information– Uses data to determine trends, projections,
and cause and effect– Supports
• Planning• Review of overall performance• Improving operations• Accomplishing change management• Comparing performance with competitors’
or “best practice” benchmarks
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Management by Fact (3)
• Measures– Best represent factors that lead to
improved customer, operational, financial, and critical performance
– Comprehensive set tied to customer and organizational performance requirements
• Provides clear basis for aligning all processes with goals
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Performance Management
• Involves consolidation of data from various sources; asking questions about, and analysis of the data; and putting the results into practice
• Continuous and real-time reviews help to identify and eliminate problems before they grow.
Definition of BPM from Wikipedia
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Societal Responsibility (1)
• Stresses– Responsibilities to public – Ethical behavior– The need to practice good citizenship
• Leaders are role models• Protection of health, safety and
environment. Includes:– Operations– Life cycle of products and services
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Societal Responsibility (2)
• Stresses conservation of resources
• Planning should anticipate adverse impacts from products, distribution, transportation, use and disposal
• Local, state, and federal laws and regulations treated as opportunities for improvement beyond mere compliance
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Societal Responsibility (3)
• Good citizenship– Leadership and support of publicly important
purposes
– Examples:• Improve education and healthcare in community
• Pursue environmental excellence
• Practice resource conservation
• Perform community service
• Improve business and industry practices
• Share nonproprietary information
– Influences other organizations to partner for these purposes
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Ethical Behavior
• How an organization ensures that all decisions, actions, and stakeholder interactions conform to moral and professional principles
• Principles distinguish right from wrong
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Focus on Results and Creating Value
• Results used to create and balance value for key stakeholders
• Builds loyalty• Contributes to growing the economy• Strategy explicitly should include key
stakeholder requirements• Use a balanced composite of
leading and lagging performance measures
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What is Valued and Measured
Process
8
4
Product
Undesired Desired
7
3
6 5
2 1
How What Why
Priorities
For Customer
For Producer
Outcome
Balance Your Balanced ScorecardRobin Lawton, Quality Progress,
March, 2002. pp.66 - 71
Customer Desired
OutcomesValue add (Loyalty, Referrals)Cust Satisfaction
Customer Undesired Outcomes
ComplaintsLost orders
Product/Service Attributes
Product performanceCustomer specsProcess
Characteristics Customer
Perspective
Delivery reliabilityAccessibility
Producer Desired
OutcomesEFOMarket shareSales
Producer Undesired Outcomes to Avoid
WasteLoss of customersFinancial lossHigh turnover
Product Attributes Producer Perspective
Cost to produceMeets Technical specificationsEase of distribution
Process Characteristics
Producers Perspective
VariabilityProductivity% First PassNPV New products
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Systems Perspective (1)
• Successful management of overall performance requires synthesis, alignment, and integration
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Systems Perspective (2)
• Synthesis– Looking at the organization as a
whole, building on key business requirements including core competencies, strategic objectives, actions plans, and work systems
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Systems Perspective (3)
• Alignment– Key linkages between key
processes• Leadership• Planning• Customer Focus• Information Management• Workforce Focus• Process Management• Results
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Systems Perspective (4)
• Integration– Individual components of
performance management system operate in a fully interconnected manner and deliver anticipated results
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Categories
1 - Leadership
2 - Strategic Planning
3 - Customer Focus
4 - Information and Knowledge Management
5 - Human Resource Focus
6 - Process Management
7 - Results
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Items (1)1.1 Senior Leadership
1.2 Governance and Societal Responsibility
2.1 Strategy Development
2.2 Strategy Deployment
3.1 Customer Engagement
3.2 Voice of the Customer
4.1 Measurement, Analysis, and Improvement of Organizational Performance
4.2 Management of Information, Knowledge and Information Technology
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Items (2)
5.1 Workforce Engagement
5.2 Workforce Environment
6.1 Work Systems
6.2 Work Processes
7.1 Product and Service Outcomes
7.2 Customer-Focused Outcomes
7.3 Financial and Market Outcomes
7.4 Workforce-Focused Outcomes
7.5 Process Effectiveness Outcomes
7.6 Leadership Outcomes
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1 - Leadership
• Senior leaders personal action guide and sustain the organization
• Organization’s governance
• Organization addresses ethical, legal, and societal responsibilities
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1.1 – Senior Leadership
• For the organization– Guide– Sustain
• Communication with workforce– What are you communicating?– How are you communicating?
• Encourage high performance
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High-performance Work - 1
• Work processes used to– Systematically pursue ever-higher
levels of overall performance (organizational and personal)
– Includes quality, productivity, innovation rate, cycle time performance
• Focuses on workforce engagement
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High-performance Work - 2
• May include empowerment of people (self-directed responsibility)– Individual and organizational skill building and
learning– Learning from other organizations– Flexibility in job design and work assignments– Seeks to align or integrate organization
structure, core competencies, work, jobs, workforce development and performance management.
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1.2 - Governance and Societal Responsibility
• Governance System
• Responsibilities to public
• Ensure ethical behavior
• Practice good citizenship
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Guide
• What does guide mean?– Direct, or influence usually to a
particular end
• What do you have to have in order to guide?– Vision, Road map– Share it– Make it real.
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Sustain• Ability to address business needs• Agility and strategic management to prepare for the
future• Considers:
– Workforce capability (knowledge, skills, abilities and competencies)
– Workforce capacity (Ability to ensure sufficient staffing levels)– Core competencies (areas of greatest expertise)– Work systems (how work of the organization is accomplished) – Resource availability – Facilities– Technology – Equipment– Knowledge
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Governance
• Stewardship of the organization
• Ensures:– Accountability to
owners/shareholders
– Transparency of operations
– Fair treatment of all stakeholders
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Responsibilities to the Public
• Stress conservation of resources
• Planning should anticipate adverse impacts from products, distribution, transportation, use and disposal
• Local, state, and federal laws and regulations treated as opportunities for improvement beyond mere compliance
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Good Citizenship
• Leadership and support of publicly important purposes
• Examples:– Improve education and healthcare in community– Pursue environmental excellence– Practice resource conservation– Perform community service– Improve business and industry practices– Share nonproprietary information– Influences other organizations to
partner for these purposes
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Legal Responsibility
• Compliance to all local, state, and federal laws and regulatory requirements
• Treat requirements as opportunities for improvement beyond compliance
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Societal Responsibility
• Planning should anticipate adverse impacts from products, distribution, transportation, use and disposal
• Leadership and support of publicly important purposes, e.g.:– Improve education and healthcare in community
– Pursue environmental excellence
– Practice resource conservation
– Perform community service
– Improve business and industry practices
– Share nonproprietary information
• Influences other organizations to partner for these purposes.
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2 – Strategic Planning
• Three key aspects of organizational excellence important to strategic planning– Customer-driven quality is a strategic view of
quality– Operational performance improvements and
innovation – short- and longer-term productivity
– Organizational and personal learning – alignment of work processes and learning initiatives
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2 – Strategic Planning
• A well crafted strategic plan provides a roadmap for success and the framework for clear communication of what is important
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2 – Strategic Planning
• How the organization develops strategic objectives and action plans (Does not imply the need for formal planning systems or specific planning cycles)
• How strategic objectives and action plans are deployed
• How strategic objectives and action plans are changed
• How progress is measured.
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2.1 – Strategy Development
• Process for developing strategic plan• Determine core competencies,
strategic challenges and strategic advantages
• Establish strategy and strategic objectives
• Summary of key strategic objectives and related goals
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Core Competencies
• Areas of greatest expertise
• Strategically important capabilities that provide an advantage in market-place or service environment
• Frequently challenging for competitors or suppliers to imitate
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Strategic Challenges
• Pressures that are an unmistakable influence on an organization’s likelihood of future success
• External– Customer or market needs or expectations
– Product, service, or technological changes
– Financial, societal, and other risks or needs
• Internal– Organizational capabilities
– Human and other resources
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Strategic Advantages
• Marketplace benefits exerting an unmistakable influence on an organization’s likelihood of success
• Sources of current and future competitive success
• Can come from:– Core competencies– Strategically important external resources
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Force Field Examples
Obje
ctives
Benefits
Strategic Advantages
Benefits
Benefits
Pressures
Pressures
Strategic Challenges
Help you achieve
your objectives
Hinder your efforts to
achieve your objectives
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Goals
• Performance level
• Short- and longer-term
• Ends that guide actions
• Quantitative are called targets
• Stretch goals refer to major or breakthrough improvements
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Strategic Objectives
• Responses to address major change or improvement, competitiveness and business advantages
• Focused on– External and internal issues, – Significant customer, market, product, service,
or technological opportunities and challenges
• Broadly – what an organization must achieve to remain or become competitive and ensure long-term sustainability.
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2.2 – Strategy Deployment
• Convert strategic objectives into action plans
• Summarize action plans and key related performance measures or indicators
• Project organization’s future performance relative to comparisons
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Action Plan
• Include details of resource commitments and time horizons for accomplishment
• Used in deploying strategic objectives and creating organization-wide understanding
• Includes creating aligned measures for all departments and units
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Summarize Action Plans and Key Performance Measures
• What do you have to have in place to respond to this?– Project Management Plan– Steps to achieve (activities)– Means of measuring progress
• On activities• On results
– Goals
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Projections and Comparisons
• Intended to improve organization’s ability to– Understand and track changing,
competitive performance factors
• Enable organization to compare rate of improvement and change relative to competitors
• Key diagnostic management tool
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Considerations
• What must you consider when defining key performance measures for action plans in order to make key comparisons?– They are related to goals– They are related to measures of
importance to customers and other key stakeholders
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3 – Customer Focus
• How organization engages customers
• How you build a customer-focused culture
• How you listen to the voice of the customer
• How you use information to improve and identify opportunities for innovation
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Voice of the Customer
• Process for capturing customer-related information– Requirements
– Expectations
– Desires
• Includes gathering and integrating customer data (affecting purchasing decisions)– Surveys
– Focus groups
– Warranty data
– Complaints
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Innovation
Making meaningful change to improve products, programs, services, processes or organizational effectiveness and to create new value for stakeholders
Involves the adoption of an idea, process, technology, or product that is either new or new to its proposed application
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3.1 – Customer Engagement
• Identify and design products to meet customer and market– Requirements– Expectations
• Define processes to support use of your products and provide access the organization
• Create a customer-focused culture
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Customer Engagement
• Customers’ commitment to your brand and product offerings
• Based on your ability to serve customers’ needs and build relationships
• Includes customers’– Loyalty– Retention– Willingness to do business– Willingness to refer others to you
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3.2 – Voice of the Customer
• Get information you can use (Listen)– Help manage key product, service and
business processes– Help determine cost and revenue implications
for setting improvement goals and priorities for change
• Obtain customer satisfaction and dissatisfaction data
• Determine for customers and markets– Requirements– Expectations
Define process
requirements
What’s it worth?
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Customer Satisfaction and Dissatisfaction
• Satisfaction– Requirements– Needs– Expectations– Preferences
• Dissatisfaction– Complaints– Win/loss analysis
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4 – Measurement, Analysis, and Knowledge Management
• Measurement– Numerical information that quantifies
outcomes
• Analysis– Examination of facts and data to provide a
basis for effective decisions
• Knowledge– Accumulated intellectual resources of the
organization (what you know and what you have learned)
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4 – Measurement, Analysis, and Knowledge Management
• Data, information and knowledge assets– Select– Gather– Analyze– Manage– Improve
• Review performance• Use the review to improve performance• Manage information technology.
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4.1 – Measurement, Analysis, and Improvement of Organizational Performance
• Measure performance– Are you measuring the right things?
• Aligned with mission, strategy, values, and behavior
– Are you measuring the right things right?
• Demonstrate improvement
– So what?• Numerically define the meaning of success
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4.1 – Measurement, Analysis, and Improvement of Organizational Performance
• Examine facts and data to provide a basis for effective decisions
• Involves gaining a deeper understanding of data and information
• Used to support– Evaluation– Decision making– Improvement– Innovation
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Types of Analyses (Examples)
• Correlate product and service improvements with key customer indicators (satisfaction, retention, market share)
• Financial benefits derived from improvements in workforce safety, absenteeism and turnover
• Relationships among product and service performance indicators and financial indicators such as operating costs, revenues, asset utilization, and value added per employee.
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4.1 – Measurement, Analysis, and Improvement of Organizational Performance
• Regular review of organizational performance against an objective or objectives– Internal– Comparative data– “Best practices” and performance from benchmarking
• Translate review findings into priorities for continuous and breakthrough improvement– Using a systematic, fact-based evaluation and improvement
process (Plan, Do, Check, Act or similar)
• Involves sharing opportunities with– Workforce– Suppliers– Collaborators– Partners.
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4.2 – Management of Information, Knowledge, and Information Technology
• Right information or is it just data?• Quality of information
– Accurate– Integrity– Timely– Security and Confidentiality
• Availability/accessible to the right resources– Workforce– Suppliers– Partners– Collaborators– Customers
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4.2 – Management of Information, Knowledge, and Information Technology
• Organizational knowledge – that is needed to– Do the work– Improve processes, products, services– Keep current with changing business needs
and directions– Develop innovative solutions
• Collection of what you know and what you have learned as an organization
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4.2 – Management of Information, Knowledge, and Information Technology
• Collection and transfer of knowledge between– Workforce– Customers– Suppliers– Partners– Collaborators
• Identification and sharing of best practices
• Information for strategic planning.
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4.2 – Management of Information, Knowledge, and Information Technology
• Software– Value add– Ease of use– Integration
• Infrastructure– Hardware
• Reliability• Security• Ease of use
– Connectivity• Availability• Reliability• Security
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5 – Workforce Focus
• Addresses key workforce practices• Objective is to utilize workforce potential
aligned with:– Overall mission– Strategy– Action plans
• How do you– Engage the workforce– Manage the workforce (work/job design) – Develop the workforce (training, education,
experience)
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5 – Workforce Focus
• How do you assess – Workforce capability– Workforce capacity
• How do you build workforce environment conducive to high performance.
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High-performance Work - 1
• Work processes used to– Systematically pursue ever-higher
levels of overall performance (organizational and personal)
– Includes quality, productivity, innovation rate, cycle time performance
• Focuses on workforce engagement
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High-performance Work - 2
• May include empowerment of people (self-directed responsibility)– Individual and organizational skill building and
learning– Learning from other organizations– Flexibility in job design and work assignments– Seeks to align or integrate organization
structure, core competencies, work, jobs, workforce development and performance management.
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5.1–Workforce Engagement (1)
• How do you achieve high performance by– Engaging your workforce– Compensating your workforce– Rewarding your workforce
• How do you develop your workforce, including leaders, to achieve high performance
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5.1 - Workforce Engagement (2)
• How do you assess to what extent the workforce is committed to the organization (engaged)
• How do you use the results of the assessment to achieve higher performance – Relationship of assessment findings to
key business results
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5.2 – Workforce Environment
• Management of workforce capability
• Management of workforce capacity
• How organization maintains a safe, secure and supportive work climate.
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Workforce Engagement
• Commitment of the workforce (emotional and intellectual) to accomplishing the work, mission and vision
• Engaged workers – Find personal meaning and motivation in the work– Receive positive interpersonal and workplace
support
• Key Factors– Training and career development– Effective recognition and reward systems– Family friendliness.
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Workforce Capability
• Ability to accomplish work processes through– Knowledge– Skills– Abilities– Competencies
• Capability may include ability to – Build and sustain relationships with customers– Innovate and transition to new technologies– Develop new products, services and work
processes– Meet changing business, market and regulatory
demands.
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Workforce Capacity
• Ability to ensure sufficient staffing levels to execute work processes and successfully deliver products and services
• Includes ability to meet seasonal and varying demand levels
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High-performance Work - 1
• Work processes used to– Systematically pursue ever-higher
levels of overall performance (organizational and personal)
– Includes quality, productivity, innovation rate, cycle time performance
• Focuses on workforce engagement
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High-performance Work - 2
• May include empowerment of people (self-directed responsibility)– Individual and organizational skill building and
learning– Learning from other organizations– Flexibility in job design and work assignments– Seeks to align or integrate organization
structure, core competencies, work, jobs, workforce development and performance management.
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Empowered
Giving people the knowledge, authority and responsibility to make decisions and take actions to create desired results
Accountability
Knowledge
Resp
on
sib
ilit
y
Results
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6 – Process Management
• Work systems design and implementation
• Key process design, management and improvement
• Readiness for emergencies.For work systems to deliver customer value and achieve organizational success and
sustainability
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6.1 – Work Systems
• How you design work systems
• How you determine key processes
• For what end?– Deliver customer value– Prepare for potential emergencies– Achieve organizational success– Achieve organizational sustainability.
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6.2 – Work Processes
• For work processes, how you– Design key work processes– Implement or put into place key work processes to
meet design requirements– Manage or operate day-to-day to ensure
requirements are met• Incorporation of input from customers, suppliers, partners,
and collaborators• Key measures used
– Improve key work processes• Better performance• Reduced variability• Share learnings
Includes support processes
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Work Systems
• How the work of organization is accomplished
• Involves (Supply Chain)– Workforce– Key suppliers and partners– Contractors– Collaborators
• Blend the internal work processes of the organization with those resources outside the organization to develop, produce, and deliver products
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7 – Results (1)
• Results indicators can be leading and/or lagging– Lagging indicators focus on the past. (Financial
measures are most familiar)– Leading indicators can predict the outcome of lagging
indicators• Example: Process performance measures (Temperature,
throughput, cycle time) can predict the product outcome (specification, characteristics, etc.)
• Knowing which indicators are leading and which are lagging can help an organization analyze cause and effect relationships– Example: Relating your workforce engagement
findings to key business results (cause and effect)
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7 – Results (2)
• Performance and improvement in all key areas– Product and service outcomes– Customer-focused outcomes– Financial and market outcomes– Workforce-focused outcomes – Process-effectiveness outcomes – Leadership outcomes
• Examined relative to competitors and/or other organizations providing similar products or services
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7.1 – Product and Service Outcomes
• Key product, program and service features• Information gathered from customers using
processes defined in Item 3.1 and 3.2• Measures address factors that affect customer
preference usually noted in Organizational Profile (P.1)
• Segmentation by– Product and service types and groups– Customer groups– Market segments
• Appropriate comparative data.
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7.2 – Customer-Focused Outcomes (1)
• Customer Satisfaction and Dissatisfaction• Information gathered from customers using
processes defined in Item 3.2• Data could include:
– Retention, gains, and customer losses– Complaints and complaint management– Warranty claims– Customer-perceived value based on quality and price– Customer assessment of access and ease of use– Awards and ratings– Recognition from customers
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7.2 – Customer-Focused Outcomes (2)
• Segmentation by– Product and service types and groups– Customer groups– Market segments
• Appropriate comparative data
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7.3 – Financial and Market Outcomes (1)
• Aim is to understand your financial sustainability and marketplace challenges and opportunities
• Measures are those usually tracked by senior leaders and reported in 4.1 and financial management approaches described in 2.2
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7.3 – Financial and Market Outcomes (2)
• Aggregate measures on financial return might include:– Return on investment– Operating margins– Profitability
• Measures of financial viability might include:– Liquidity– Debt-to-equity ratio– Days cash on hand– Asset utilization– Cash flow
• Segmentation by customer or market segments
• Appropriate comparative data.
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7.4 – Workforce-Focused Outcomes (1)
• Aim is to demonstrate how well you have been creating and maintaining a productive, engaging, and caring work environment
• Results address:– Processes described in Category 5– Key work process needs described in
Category 6– Human resource plans described in Item 2.2
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7.4 – Workforce-Focused Outcomes (2)
• Measures for workforce engagement and satisfaction might include:– Improvement in local decision making– Organizational culture (e.g. extent and success of self-
direction)– Workforce and leader development (effectiveness, not
just extent)
• Outcome measures might be:– Increased workforce retention resulting from
establishing a peer recognition program, or– The number of promotions resulting from leadership
development program– Both reflect cause and effect
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7.4 – Workforce-Focused Outcomes (3)
• Generic factors might include:– Safety– Absenteeism– Turnover– Satisfaction– Complaints (grievances)
• Local or regional comparisons appropriate
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7.4 – Workforce-Focused Outcomes (4)
• Organization-specific factors– Extent of training, re-training, or cross-
training to meet capability and capacity needs
– Extent of self-direction– Extent of volunteer involvement in
process activities
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7.5 – Process Effectiveness Outcomes (1)
• Aim is to achieve work system and work process effectiveness and efficiency
• Results address key operational requirements presented in Item 6.1 and 6.2
• Measures track key processes and operational improvement
• Results should provide:– Key information for analysis and review of organizational
performance (Item 4.1)– Explanation for product and service outcomes (Item 7.1),
customer-focused outcomes (Item 7.2), and financial and market outcomes (Item 7.3) (cause and effect – process outcomes should influence outcomes in 7.1, 7.2, and 7.3)
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7.5 – Process Effectiveness Outcomes (2)
• Measures for work system performance might include:– Just-in-time delivery– Acceptance results for externally provided
products, services, processes– Supplier and partner performance– Product, service, and work system innovation
rates and results– Response times for emergency drills or
exercises– Results for contingency exercises
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7.5 – Process Effectiveness Outcomes (3)
• Measures for process effectiveness and efficiency might include:– Performance that demonstrates improved cost savings
or higher productivity (Could be linked to Six Sigma initiative results)
– Internal responsiveness indicators (cycle times, production flexibility, lead times, set-up times, time to market)
– Improvements in support processes– Reduced emission levels,– Waste stream reductions– Recycling
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7.6 – Leadership Outcomes (1)
• Aim is to maintain a fiscally sound, ethical organization that is a good citizen in its community
• Results related to accomplishment of strategy and action plans linked to:– Strategic objectives and goals - Item 2.1b(1)– Key action plan performance measures – Item
2.2a(6) – Performance projections or key action plan
performance measures – Item 2.2b
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7.6 – Leadership Outcomes (2)
• Measures for ethical behavior (Item 1.2 Note 4) might include:– Percentage of independent board
members– Instances of ethical conduct breaches and
responses– Survey results on workforce perceptions
of organization ethics– Ethics hotline use– Results of ethics reviews and audits
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7.6 – Leadership Outcomes (3)
• Measures of fiscal accountability might include:– Financial statement issues and risks– Internal and external auditor recommendations and
responses
• Measures of regulatory and legal compliance related to Item 1.2b (1)
• Measures of organizational citizenship should support key communities discussed in Item 1.2c and might include:– Efforts to strengthen local community services– Performing community service– Improving industry and business practices