Using Baldrige to Build

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Using Baldrige to Build a High Performance
Organization
Dr. Jim Evans College of Business University of
Cincinnati James.Evans_at_UC.edu
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What Is 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

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Baldrige History

• Decline in U.S. Competitiveness
• Presidential Commission
• Japan and the Deming Prize
• Hudiburg and Florida Legislators
• 1986 hearings
• Bill reintroduced in Spring 1987
• assigns responsibility to DoC/NBS
• Death of Malcolm Baldrige (July 25, 1987)
• MBNQA created on August 20, 1987 as Public Law
  100-107
• W. Verity named Sec., pledges first awards in 1988

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Baldrige Categories

• Manufacturing, Service, Small Business
• Education and Health Care added in 1999
• Nonprofit pilot program offered in 2006
• Nonprofit category will be available in 2007

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Program Participants Through 2005

• 64 Award recipients (68 Awards)
• 1,063 Baldrige Award applications
• Almost 3,000 trained Examiners
• Widespread participation
• Private sector contributions provide over 90 of
  Program support

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The Criteria for Performance Excellence
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Key Roles of the Criteria

• To help improve organizational performance
  practices, capabilities, and results,
• To facilitate communication and sharing of best
  practices information among organizations of all
  types, and
• To serve as a working tool for understanding and
  managing performance and for guiding
  organizational planning and opportunities for
  learning.

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The Baldrige Framework A Systems Perspective
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Summary of Categories/Items

• Human Resource Focus
• Work Systems
• Employee Learning and Motivation
• Employee Well-Being and Satisfaction
• Process Management
• Value Creation Processes
• Support Processes and Operational Planning
• Results
• Product and Service Outcomes
• Customer-Focused Outcomes
• Financial and Market Outcomes
• Human Resource Outcomes
• Organizational Effectiveness Outcomes
• Leadership and Social Responsibility Outcomes

• Leadership
• Senior Leadership
• Governance and Social Responsibilities
• Strategic Planning
• Strategy Development
• Strategy Deployment
• Customer and Market Focus
• Customer and Market Knowledge
• Customer Relationships and Satisfaction
• Measurement, Analysis, and Knowledge Management
• Measurement, Analysis and Review of
  Organizational Performance
• Information and Knowledge Management

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Core Values

• Visionary leadership
• Customer-driven excellence
• Organizational and personal learning
• Valuing employees and partners
• Agility

• Focus on the future
• Managing for innovation
• Management by fact
• Social responsibility
• Focus on results and creating value
• Systems perspective

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Award Evaluation Process
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Scoring System Category Point Values

• 1 Leadership 120
• 2 Strategic Planning 85
• 3 Customer Market Focus 85
• 4 Information Analysis 90
• 5 Human Resource Focus 85
• 6 Process Management 85
• 7 Business Results 450

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Steps Toward Mature Processes
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Results

• Current performance
• Performance relative to appropriate comparisons
  and benchmarks
• Rate, breadth, and importance of performance
  improvements
• Linkage of results measures to key customer,
  market, process, and action plan performance
  requirements

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Feedback Report

• Strengths - approaches or results that
  demonstrate effective response to the Criteria
• Opportunities for improvement - how the applicant
  can better address the purposes of the Criteria,
  or issues that require clarification

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Leveraging Baldrige

• Begin a self assessment process
• Study best practices
• Apply for the Ohio Award for Excellence
• Attend local, regional, or national conferences

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Why Self-Assess?

• Customers/competitors drive need to change
• Keep pace with changes in industry
• Maintain a leadership position
• Enhance organizational learning
• Align actions with organizations values
• Keep the organization healthy
• Improve performance

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Benefits of Self-Assessment

• Identify successes and opportunities for
  improvement
• Jump-start a change initiative
• Energize improvement initiatives
• Energize employees
• Focus your organization on common goals
• Assess performance against the competition
• Align your resources with your strategic
  objectives

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Tools and Approaches

• Are We Making Progress? and Are We Making
  Progress as Leaders? (Baldrige Web site
  www.baldrige.org)
• e-Baldrige (Web site)
• Complete the Organizational Profile
• Answer the 19 Criteria Item title questions and
  self-assess
• Use external examiners for unbiased feedback

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Are We Making Progress Questionnaires

• Are We Making Progress?
• Are We Making Progress as Leaders?
• One Questionnaire for Employees, one for the
  Leadership Team
• Seven-Category Framework
• 40 Statements, Five-Point Scale

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Benefits of Are We Making Progress?

• Determine effectiveness of your communication of
  strategies, goals, and messages
• Focus improvement and communication
• Measure trust
• Customizable
• Compare results

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e-Baldrige

• Online self-assessment tool
• Based on the Organizational Profile
• Preface to the Criteria
• A series of questions to help you identify
• The key influences on your organization
• The key challenges your organization faces

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How to Use e-Baldrige

• Examine each question in the Organizational
  Profile and determine if the question is
• Easy to Answer
• Could Answer
• Difficult to Answer
• Compare your answers to others

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Benefits of e-Baldrige

• Determine readiness for a more thorough
  self-assessment
• Reveal gaps and opportunities for improvement
• Compare your organization to others
• Assist with developing an action plan for
  improvement or preparing for a more complete
  self-assessment

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Prepare the Organizational Profile

• Purpose
• Describe what is relevant and important
• Ensure common understanding
• Guide selection of information/data
• Identify gaps/lack of deployment

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Components

• Organizational Description
• Organizational Environment
• Organizational Relationships
• Organizational Challenges
• Competitive Environment
• Strategic Challenges
• Performance Improvement System

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Study Best Practices

• Award recipient application summaries (Baldrige
  Web site)

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Example Sunny Fresh Foods Leadership System
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Excerpt Describing Leadership System

• SFF works to understand and meet customer
  requirements whether internal customers or
  external customers (Step 1). All stakeholders are
  trained in SFFs Core Ideology, and in The Four
  Absolutes of Quality (Step 2). These concepts are
  used by all levels of management to continuously
  reinforce the alignment of SFFs direction,
  expectations, and strategic goals with its
  performance measurement balanced scorecard
  approach (Steps 3 and 4). SFF leaders use the
  Performance Management Process (PMP) and ongoing
  and annual individual performance reviews to
  promote high-performance behaviors amongst SFF
  stakeholders (Steps 3 and 6). These behaviors
  align with SFFs Core Values and are linked with
  individual accountability, improvement, agility,
  learning, and innovation. The individual
  performance review process includes a skill
  development planning component for each
  stakeholder. Through formal recognition programs
  leaders encourage, reward, and sustain individual
  and organizational learning and agility, and the
  sharing of innovations and improvements (Step 6).

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Bronson Methodist Hospital Complaint Management
Process
Key characteristics Systematic and repeatable
process Focused on improvement and
prevention Capable of organizational
learning Knowledge sharing
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Satisfaction Results
Arbor Associates best practice benchmark since
2001 and Arbor Associates Award for Highest
Overall Patient Satisfaction four years in a row.
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Ohio Partnership for Excellence

• www.oae.org
• Four tier Award process
• Aligns to the maturity of your organizations
• Lower tiers focused on development and recognition

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Conferences

• Ohio Partnership for Excellence Quest for Success
  (mid September annually in Columbus)
• Baldrige national Quest for Excellence (late
  March or early April in Washington D.C.)
• Baldrige regional Quest for Excellence (1 day
  conferences) at various locations see Web site)

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Thank You!

• Feel free to contact me at
• James.Evans_at_UC.edu
• 513 556 7152
• for further assistance.
• Consider using your organization as case projects
  for mini-assessments my student MBA teams