Baldrige Performance

Excellence Program
By: MBA, Sajad Nazari
Janus Aries Simbillo

nazary_sajjad@yahoo.com
 What is the Baldrige Program?
► Operates as a unique public-private partnership
► Educates organizations on performance
excellence management
► Manages the Malcolm Baldrige National Quality
Award

Baldrige is Performance Excellence: Organizations

Achieve and the U.S. Succeeds
 Purpose
► It enhances the competitiveness, quality, and
productivity of U.S. organizations for the benefit of
all citizens.
► It develops and disseminates evaluation criteria
and manages the Malcolm Baldrige National
Quality Award in close cooperation with the private
sector.
► It also provides global leadership in
promoting performance excellence and in the
learning and sharing of successful performance
practices, principles, and strategies.
 History
The Malcolm Baldrige National Quality Improvement
Act of 1987, Public Law 100-107
► Created Award Program to
 identify/recognize role-model businesses
 establish criteria for evaluating improvement efforts
 disseminate/share best practices
► Expanded to health care and education (1998)
► Expanded to nonprofit (+ Government) sector –
(2005)
 The Man Behind
► Howard Malcolm Baldrige, Jr. (October 4, 1922 – July 25, 1987) was the
26th United States Secretary of Commerce.
► During his tenure, Baldrige played a major role in developing and carrying out
Administration trade policy.
► He took the lead in resolving difficulties in technology transfers
with China and India.
► He held the first Cabinet-level talks with the Soviet Union in seven years which
paved the way for increased access for U.S. firms to the Soviet market.
► Leading the Administration's effort to pass the Export Trading Company Act of
1982, Baldrige was named by the President to chair a Cabinet-level Trade Strike
Force to search out unfair trading practices and recommend ways to end those
practices.
► Baldrige's award-winning managerial excellence contributed to long-term
improvement in economy, efficiency, and effectiveness in government. Within
the Commerce Department, Baldrige reduced the budget by more than 30% and
administrative personnel by 25%.
► Baldrige died July 25, 1987, in John Muir Hospital, Walnut Creek, California,
after a rodeo accident in Brentwood, Contra Costa County, in Northern
California.
 Performance Excellence
An integrated approach to organizational
performance management that results in
delivery of ever-improving value to customers
and stakeholders, contributing to organizational
sustainability
improvement of overall organizational
effectiveness and capabilities
organizational and personal learning
 Program Participants
► 86 Award recipients (91 Awards)
► 1,458 Baldrige Award applications
► More than 5,800 trained Examiners
► Widespread participation
► Private-sector contributions provide
over 90 percent of Program support
 Award Recipients’ Contributions
► Increase competitiveness of U.S.
organizations
► Give presentations to all sectors
► Give presentations at The Quest for
Excellence® and the regional conferences
► Influence customers/suppliers
► Host seminars and workshops
► Write articles
 Applying for the Baldrige Award
► Manufacturing
► Service
► Small business (manufacturing or service)
► Education (for-profit and nonprofit)
► Health care (for-profit and nonprofit)
► Nonprofit, including charities and
government agencies
 The Baldrige Criteria
► Are considered a validated organizational performance assessment

tool
► Define performance excellence
► Are used to identify Award recipients
► Are used by diverse organizations in all sectors of the U.S. economy
► Comprise an Organizational Profile and seven Categories—an

integrated management framework

► Are updated regularly (currently every two years)
 Seven Categories of the
Business/Nonprofit Criteria
► Leadership
► Strategic Planning
► Customer Focus
► Measurement, Analysis, and Knowledge
Management
► Workforce Focus
► Process Management
► Results
 Core Values and Concepts
► Visionary Leadership
 An organization’s senior leaders have a central role in
setting directions and creating a customer focus. They
must convey clear and visible values and high
expectations.
► Customer-Driven Excellence
 Performance and quality are judged by an
organization’s customers.
► Organizational and Personal Learning
 Organizational learning refers to continuous
improvement of existing approaches and significant
change or innovation, leading to new goals and
approaches.
 Core Values and Concepts
► Valuing Workforce Members and Partners
 An organization’s success depends increasingly on an engaged workforce
and on the diverse backgrounds, knowledge, skills, creativity, and
motivation of its workforce and partners.
► Agility
 Success in today’s ever-changing, globally competitive environment
demands agility—a capacity for rapid change and flexibility.
► Focus on the Future
 The pursuit of sustainable growth and sustained performance leadership
requires a strong future orientation and a willingness to make long-term
commitments to key stakeholders
► Managing for Innovation
 Innovation is no longer strictly the purview of research and development
departments.
 Core Values and Concepts
► Management by Fact
 Performance improvement requires measurement and analysis.
► Societal Responsibility
 Leaders should stress responsibilities to the public, ethical behavior, and
the need to consider societal well-being and benefit, which refers to
leadership and support—within the limits of an organization’s resources—
of publicly important purposes.
► Focus on Results and Creating Value
 Results should be used to create and balance value for your key
stakeholders.
► Systems Perspective
 A systems perspective means managing the whole organization, as well as
its key processes, to achieve results—and strive for performance
excellence.
Baldrige Criteria Framework:
A Systems Perspective
Steps Toward Mature
Processes
 Organizational Profile
P.1 Organizational Description
P.2 Organizational Situation

► Starting point for self-assessment and

application preparation
► Basis for early action planning
 Category Point Values
1 Leadership 120
2 Strategic Planning 85
3 Customer Focus 85
4 Measurement, Analysis, and
Knowledge Management 90
5 Workforce Focus 85
6 Process Management 85
7 Results 450
TOTAL POINTS 1,000
 1. Leadership (120 pts.)
Addresses Senior Leaders’ Actions, Governance, and Societal
Responsibilities
► 1.1 Senior Leadership (70 pts.)
 Asks “How do your senior leaders lead?”
 It focuses on how senior leaders set organizational vision and values;
create an environment that fosters, requires, and results in legal and ethical
behavior; create a sustainable organization; and create an environment for
organizational improvement.
► 1.2 Governance and Societal Responsibilities
(50 pts.)
 Asks “How do you govern and fulfill your societal responsibilities?”
 It examines several key aspects of your organization’s governance system
and approach to leadership.
 2. Strategic Planning (85 pts.)
Addresses Strategic and Action Planning and
Deployment of Plans
► 2.1 Strategy Development (40 pts.)
 Asks “How do you develop your strategy?”
 It examines how your organization establishes its strategy to
address its strategic objectives and leverage its strategic
advantages.
► 2.2 Strategy Implementation (45 pts.)
 Asks “How do you deploy your strategy?”
 It examines how your organization converts its strategic objectives
into action plans to accomplish these objectives and how it deploys
and assesses progress on its action plans.
3.Customer Focus (85 pts.)
Addresses How an Organization Engages
its Customers and Listens to the
Voice of the Customer
► 3.1 Voice of the Customer (45 pts.)
 Asks “How do you engage customers to serve their needs
and build relationships?”
 It asks how your organization determines product offerings
and mechanisms to support customers’ use of your products.
► 3.2 Customer Engagement (40 pts.)
 Asks “How do you obtain and use information from your
customers?”
 It examines how your organization listens to its customers,
acquires satisfaction and dissatisfaction information, and
uses customer information to improve its marketplace
success.
 4. Measurement, Analysis, and
Knowledge Management (90
pts.)
Addresses Analysis, Review, and Improvement of
Organizational Performance and Management of Data,
Knowledge, and Information Resources

► 4.1 Measurement, Analysis, and Improvement of

Organizational Performance (45 pts.)
 Asks “How do you measure, analyze, and then improve organizational
performance?”
 It covers your performance data and information at all levels and in all
parts of the organization.

► 4.2 Management of Information, Knowledge, and

Information Technology (45 pts.)
 Asks “How do you manage your information, organizational knowledge,
and information technology?”
 It addresses the availability and quality of needed data, information,
hardware, and software for your workforce, suppliers, partners,
collaborators, and customers.
 5. Workforce Focus (85
pts.)
Addresses How an Organization Engages,
Develops, and Manages Its Workforce and Builds
an Effective Workforce Environment
► 5.1 Workforce Environment (40 pts.)
 Asks “How do you engage your workforce to achieve organizational
and personal success?”
 It examines how your organization engages, compensates, and
rewards your workforce to achieve high performance.
► 5.2 Workforce Engagement (45 pts.)
 Asks “How do you build an effective and supportive workforce
environment?”
 It addresses how your organization manages workforce capability
and capacity to accomplish its work and how it maintains a safe,
secure, and supportive work climate.
 6. Process Management (85
pts.)
Addresses How an Organization Designs Its Work Systems;
Prepares for Emergencies; and Designs, Manages, and
Improves Its Work Processes
► 6.1 Work Systems (45 pts.)
 Asks “How do you design your work systems?”
 It addresses how your organization designs its work systems and
determines its key processes to deliver customer value, prepare for
potential emergencies, and achieve organizational success and
sustainability.
► 6.2 Work Processes (40 pts.)
 Asks “How do you design, manage, and improve your key
organizational work processes?”
 It examines how your organization designs, implements, manages, and
improves its key work processes to deliver customer value and achieve
organizational success and sustainability.
 7. Results (450 pts.)
Addresses an Organization’s Performance
and Improvement in Key Areas and Includes
Current Performance Levels, Trends, and
Comparative Data
► 7.1 Product and Process Outcomes (100 pts.)
 Asks “What are your product performance results?”
 It also asks for segmented results and appropriate comparative
data.
► 7.2 Customer-Focused Outcomes (90 pts.)
 asks “What are your customer-focused performance results?”
 It examines results for customer satisfaction, dissatisfaction, and
engagement.
 7. Results (450 pts.)
► 7.3 Financial and Market Outcomes (80 pts.)
 Asks “What are your financial and marketplace performance
results?”
 These results might include aggregate measures of financial return,
measures of financial viability or budgetary performance, and
measures of marketplace performance, such as market share or
position, market or market share growth, and new markets entered.
► 7.4 Workforce-Focused Outcomes (80 pts.)
 Asks “What are your workforce-focused performance results?”
 It examines results relating to workforce engagement and
satisfaction, workforce and leader development, workforce
capability and capacity, and the workforce climate.
 7. Results (450 pts.)
► 7.5 Process Effectiveness Outcomes (20 pts.)
 Asks “What are your process effectiveness results?”
 It examines your key operational performance results that
contribute to the achievement of organizational effectiveness,
including your organization’s readiness for emergencies.
► 7.6 Leadership and Governance Outcomes (80 pts.)
 Asks “What are your leadership results?”
 It examines your organization’s key governance and senior
leadership results, including evidence of strategic plan
accomplishments, fiscal accountability, legal compliance, ethical
behavior, societal responsibility, and support of key communities.
 Program Achievements
► Created a national and international
standard for performance excellence
► Produced role models

► Shared best management practices

► Generated award programs

► Raised U.S. competitiveness

► Established outreach and education

systems
 2012 Baldrige Award Recipients
► Lockheed Martin Missiles and Fire
Control , Grand Prairie, Texas
(manufacturing)
► MESA Products Inc. , Tulsa, Okla. (small
business)
► North Mississippi Health Services ,
Tupelo, Miss. (health care)
► City of Irving , Irving, Texas (nonprofit)
 Improvement Tools
► These improvement tools are
complementary, not mutually exclusive. For
example, Baldrige, Lean, and Six Sigma all
 focus on results
 use a team approach
 require management by fact
 are customer- and market-focused
 require strong leadership for  long-term
effectiveness
 Differences
► the Baldrige Criteria serve as a comprehensive
framework for performance excellence. They focus
on business results as well as organizational
improvement and innovation systems.
► Lean and Six Sigma methodologies drive waste
and inefficiencies out of processes.
► ISO 9000 is a series of standards for an efficient
quality conformance system.
► Overall, ISO 9000 registration covers less than 10
percent of the Baldrige Criteria.
 Integration of the Baldrige Criteria
and Other Improvement Tools
► use Baldrige to develop an overall
performance map, identify areas for
improvement, and track results
► use Six Sigma, Lean, or other tools to
design operations or improve processes
“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