The Malcolm Baldrige Framework

Performance Excellence Model

The Malcolm Baldrige Framework

A continuous improvement framework that is focused on the customer, led by management, based on facts and data, and directed toward results.

The framework:
1. Defines what constitutes quality and performance excellence. 2. Projects clear values. 3. Measures both qualitative and quantitative aspects of performance and quality management systems. 4. Is compatible with different approaches and systems. 5. Applies to any organization of any size and kind that provides a product or service to a customer or user. 6. Together with the scoring guidelines, forms a diagnostic assessment system comprising three basic elements

KEY FACTORS CONSIDERED ESSENTIAL FOR PERFORMANCE EXCELLENCE

Customer-driven Quality Leadership Continuous Improvement and Learning Employee Participation and Development Fast Response Design Quality and Prevention Long-range View of the Future Management by Facts Partnership Development Company Responsibility and Citizenship Results Focus

Why to Choose Malcolm Baldrige Model?

Organizations looking for an approach to performance management and improvement have many options, but a few aspects set Baldrige apart: The Criteria for Performance Excellence provide a framework for improvement without being prescriptive.

The Criteria are inclusive, describing an integrated management framework that addresses all the factors that define the organization, its operations, and its results.

The Criteria focus on common requirements, rather than procedures, tools, or techniques.
The Criteria are adaptable to all manner of organizations. The Criteria are at the leading edge of validated management practices of strategy-driven performance, address the needs of all stakeholders, and accommodate important organizational needs and practices

How Malcolm Baldrige Model Works

Preserves what already works well Interactively examines your existing management system and its key processes versus a best practice management system Upgrades or replaces the core engine of mediocre capability processes with proven core best practice processes custom tailored to your organization's needs Integrates all key processes and their performance metrics with your mission, vision, values, strategic objectives, and action plans Defines and establishes process owner and participants responsibilities and gains their acceptance Provides training, implementation, process control, and continuous improvement approaches for each key process All key processes are fully integrated into a total management system that can be easily linked to all existing processes, policies, instructions via your Intranet.

Proven effective implementation for over 25 years

Core Values and Concepts

Visionary leadership Learning-centered education Organizational and personal learning Valuing faculty, staff, and partners Agility Focus on the future Managing for innovation Management by fact Social responsibility Focus on results and creating value Systems perspective

Visionary Leadership

Set direction and create a customer focus Provides clear and visible values Balance the needs of all stakeholders Create strategies, systems, and methods for achieving performance excellence Stimulates innovation Builds knowledge and capabilities

Visionary Leadership (Cont.)

Ensures organizational sustainability Inspires and encourages entire workforce to contribute Serves as role models through their ethical behavior

Personal involvement in planning, communicating, coaching the workforce, developing future leaders, reviewing organizational performance, and recognizing performance of members of workforce

Organizational & Personal Learning

Develop organizational and personal learning by sharing knowledge via systematic processes Learning needs to be embedded in the way your organization operates. Ensure that Learning:

(1) is a regular part of daily work; (2) is practiced at personal, work unit, and organizational levels; (3) results in solving problems at their source (root cause); (4) is focused on building and sharing knowledge throughout your organization; (5) is driven by opportunities to effect significant, meaningful change and to innovate.

Organizational & Personal Learning (Cont.)

Organizational learning will result in: 1. Enhancing value to customers through new and improved products and customer services; 2. Developing new business opportunities;

3. Developing new and improved processes or business models

4. Increasing productivity and effectiveness in the use of all your resources 5. Enhancing your organizations performance in fulfilling its societal responsibilities. 6. Reducing errors, defects, wastes and related costs 7. Improving responsiveness and cycle time

Organizational & Personal Learning(Cont.)

Personal learning can result in 1. More engaged, satisfied and versatile workforce that stays with your organization, 2. Organizational cross-functional learning, 3. Building of your organizations knowledge assets, 4. an improved environment for innovation.

Focus on the Future

The pursuit of sustainable growth and sustained performance requires:

A strong future orientation

willingness to make long-term commitments to key stakeholdersyour customers, workforce, suppliers, partners, and stockholders; the public; and your community

Focus on the Future

Organizations planning should anticipate many factors, such as: 1. 2. customers expectations, new business and partnering opportunities,

3.
4. 5. 6.

workforce development and hiring needs,

the increasingly global marketplace, technological developments, changes in customer and market segments,

7.
8. 9.

new business models,

evolving regulatory requirements, changes in community and societal expectations and needs,

10. and strategic moves by competitors

Focus on the Future

A focus on the future includes developing :

1. 2. 3. 4. 5. 6. Leaders, Workforce Suppliers; Accomplishing effective succession planning, Creating opportunities for innovation, Anticipating societal responsibilities and concerns

Valuing the Workforce and Partnership

An organizations success depends increasingly on :
1. 2. An engaged workforce that benefits from meaningful work, clear organizational direction, etc Performance accountability that has a safe, trusting, and cooperative environment

Valuing the Workforce and Partnership

Valuing members of your workforce include: 1. 2. 3. 4. Demonstrating your leaders commitment to their success, Providing recognition that goes beyond the regular compensation system, Offering development and progression within your organization, Sharing your organizations knowledge so your workforce can better serve your customers and contribute to achieving your strategic objectives, Creating an environment that encourages risk taking and innovation, Creating a supportive environment for a diverse workforce

5. 6.

Valuing the Workforce and Partnership

Internal partnerships might include 1. 2. 3. Labor-management cooperation. Partnerships with members of your workforce Entail development opportunities, cross-training, or new work organizations, such as high-performance work teams. Creating network relationships among your work units or between employees Volunteers to improve flexibility, responsiveness, and knowledge sharing.

4. 5.

Valuing the Workforce and Partnership

External partnerships might be with customers, suppliers, and education or community organization Strategic partnerships or alliances for new markets or a basis for new products or customer support services Develop core competencies or leadership capabilities with the complementary strengths and capabilities of partners to address common issue

Managing Innovation

Meaningful and managed innovations help to:

1. Improve an organizations products, services, programs, processes, operations, and business model to create new value for the organizations stakeholders Lead your organization to new dimensions of performance. Cover all aspects of your operations and all work systems and work processes

2. 3.

Managing Innovation
Organizations should be led and managed so that:
Innovation becomes part of the learning culture

Innovation should be integrated into daily work

It should be supported by your performance improvement system Systematic processes for innovation should reach across your entire organization. Innovation builds on the accumulated knowledge. Ensure organizations ability to rapidly disseminate and capitalize on this knowledge as it is critical to driving organizational innovation.

Management by Facts
Organizations depend on the measurement and its analysis for evaluation of their performance Measurements should be derived from business needs and strategy, and they should provide critical data and information about key processes, outputs, and results Performance measurement should include:
Customer, product, and process performance

Comparisons of operational, market, and competitive performance

Supplier, workforce, partner, cost, and financial performance governance and compliance outcomes

Management by Facts

Analysis entails using data to a. b. Determine trends, projections, and cause and effect that might not otherwise be evident. Analysis supports a variety of purposes, such as planning, reviewing your overall performance, improving operations, accomplishing change management, and comparing your performance with competitors or with best practices benchmarks

Management by Facts

The measures or indicators should best represent the factors that lead to improved customer, operational, financial, and societal performance Indicators should provides a clear basis for aligning all processes with your organizations goals Measures and indicators should support decision making in a rapidly changing environment

Focus on Results and Creating Value

Organizations performance measurements should focus on key results Results should be used to create and balance value for key stakeholders customers, workforce, stockholders, suppliers and partners; the public; and the community

Creating value for your key stakeholders, organization builds loyalty and contributes to growing the economy, and contributes to society
Plans and actions meet differing stakeholders needs and avoid adverse impacts on any stakeholders

Agility
Globally competitive environments demand agilitya capacity for rapid change and flexibility Ever-shorter cycles for the introduction of new/improved products Major improvements in response times often require:
New work systems Simplification of work units and processes Ability for rapid changeover from one process to another Cross-trained and empowered workforce

Societal Responsibility
Organization's leaders should stress:
Responsibilities towards public
Ethical behavior Societal well-being and benefit Focusing on ethics and protection of public health, safety, and the environment : Protection of health, safety, and the environment includes organizations operations, as well as the life cycles of your products Effective planning to prevent problems, provide for a forthright response if problems occur, and make available information and support needed to maintain public awareness, safety, and confidence

Societal Responsibility
Effective design strategies should anticipate growing environmental concerns and responsibilities Societal well-being and benefit: Refers to leadership and supportwithin the limits of an organizations resourcesof publicly important purposes.
Improving education and health care in your community Pursuing environmental excellence

Being a role model for socially important issues

Practicing resource conservation Performing community service, Improving industry and business practices

Sharing nonproprietary information

Systems Perspective
Systems Perspective means managing your whole organization, as well as its components, to achieve success
Systems Perspective manages organization and its key processes to achieve resultsand to strive for performance excellence Successful management of overall performance requires:
Alignment of Processes, plans, etc. Integration of Processes, plans, etc.

Systems Perspective

Alignment means using the key linkages among requirements to ensure consistency of plans, processes, measures, and actions Integration builds on alignment so that the individual components of your performance management system operate in a fully interconnected manner and deliver anticipated results

Systems Perspective
Systems Perspective also includes measures, indicators, core competencies, and organizational knowledge to build key strategies and Linking these strategies to:
work systems Key processes Aligning resources to improve overall performance Focus on customers and stakeholders

Customer-Driven Excellence

Performance and quality are judged by an organizations customers Organization must take into account all product features and characteristics and all modes of customer access and support that contribute value to your customers Creating value for customer results in customers satisfaction, preference, and loyalty; to positive referrals; and ultimately to business expansion

Customer-Driven Excellence

Value and satisfaction may be influenced by many factors:

Organizations and customer relationships Building Customers trust Developing Customers confidence in your Organization Developing Customers loyalty

Customer-Driven Excellence
Customer-driven Excellence means much more than reducing defects and errors, merely meeting specifications, or reducing complaints
Organization must excel by:
Recovering from defects, service errors, and mistakes is crucial to retaining customers and engaging customers for the long term innovative offerings, combinations of product and service offerings, customization of offerings, multiple access mechanisms, rapid response, or special relationships. close attention to the voice of the customer Being sensitive to changing and emerging customer and market requirements Organizational agility

Malcolm Baldrige Scoring System

Two evaluation dimensions:
Process :The four factors used to evaluate process are Approach, Deployment, Learning, and Integration
Results: The four factors used to evaluate results are Levels, Trends, Comparisons, and Integration (LeTCI).

Scoring System: Process Factors

Approach refers to:

The methods used to accomplish the process The appropriateness of the methods to the Item requirements and the organizations Operating environment The effectiveness of your use of the methods The degree to which the approach is repeatable and based on reliable data and information (i.e., systematic)

Scoring System: Process Factors

Deployment refers to the extent to which :

Your approach is applied in addressing Item requirements relevant and important to your organization Your approach is applied consistently Your approach is used (executed) by all appropriate work units

Scoring System: Process Factors

Learning refers to:
Refining your approach through cycles of evaluation and improvement Encouraging breakthrough change to your approach through innovation Sharing refinements and innovations with other relevant work units and processes in your organization

Scoring System: Process Factors

Integration refers to the extent to which:
Your approach is aligned with your organizational needs identified in the Organizational Profile and other Process Items Your measures, information, and improvement systems are complementary across processes and work units Your plans, processes, results, analyses, learning, and actions are harmonized across processes and work units to support organization-wide goals

Scoring System: Result Factors

Levels refers to your current level of performance Trends refers to:
The rate of your performance improvements or the sustainability of good performance (i.e., the slope of trend data) The breadth (i.e. the extent of deployment) of your performance results

Scoring System: Result Factors

Comparisons refers to:

Your performance relative to appropriate comparisons, such as competitors or Organizations similar to yours

Your performance relative to benchmarks or industry leaders

Scoring System: Result Factors

Integration refers to the extent to which
Your results measures (often through segmentation) address important customer, Product, market, process, and action plan performance requirements identified in your Organizational Profile and in Process Items

Your results include valid indicators of future performance

Your results are harmonized across processes and work units to support organization-wide goals

Malcolm Baldrige National Quality Award

MBNQA is given by United States National Institute of Standards and Technology Original stated purpose of the award were
promote quality awareness recognise quality achievements of the US companies publicise successful quality strategies

Objects of Current award criteria are stated

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

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Total Quality Management - Spring 2010

Malcolm Baldrige National Quality Award: Total 1000 points

1.0 Leadership (120 points) 2.0 Strategic Planning (85 points)

3.0 Customer and Market Focus

points)

(85

4.0 Information and Analysis

(90 points)

5.0 Human Resource Focus (85 points) 6.0 Process Management (85 points)
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7.0 Business Results

(450 points)
Total Quality Management - Spring 2010

How to Get Started

Questionnaires (10 minutes) Are we making progress? Are we making progress as leaders? 40 questions

Online Assessment
Easy Insight Online assessment
How much information do you have? How much have you thought about strategy and operations and your customer? Help you figure out where to start digging

Self-Analysis

Categories
Manufacturing Service Small Business Education (added 1999) Health Care (added 1999) Nonprofit (2005)

Application Process
Questionnaires for company and management

Online assessment

Application process
Self-Assessment, Application turned in Consensus Review: Initial screen by independent Board of Examiners (8) Site Visit Review by teams of examiners
Verify information, get questions answered Written summary of strengths, areas for improvement

300 volunteer examiners U.S.-Based companies only Winners agree to spread the word about quality

Preparing the Application

Organizational profile describes org. and challenges
Maybe need more information, identified problems, work on those first

Category teams: info & data on area

Action plan for improvement

Senior leaders, champions, teams evaluate how to improve process for future

10-step Process 1. Boundaries of org. to be assessed

2. Champions for each area 3. Decide format & scope for self-assessment 4. Senior leaders, champions prepare Org. Profile
Organizational profile describes org. and challenges & environment Common understanding of what is important System for improvement, strategic challenges Go directly to 9 develop & implement improvement plan

10-step process
5. Practice self-assessment with champions
Use Item 1.1 Criteria for Performance Excellence See if meeting goals, on track

6.

Champions select category teams

3-5 enthusiastic team members, different levels Maybe outside organization being studied Read the criteria, gather data, write an analysis Explain how approaches used throughout org.

10-step process
7. Share findings among teams, stengths & weaknesses 8. Prioritize key strengths and areas to improve 9. Develop and implement action plan for improvement
Who will lead each step, what is to be accomplished, progress dates, how progress will be measured

10. Evaluate and improve your self-assessment and action process

Six Sigma, ISO, BNQA

Six Sigma
concentrates on measuring product quality and improving process engineering. drives process improvement and cost savings.

ISO 9001:2000 Registration

is a product/service conformity model for guaranteeing equity in the marketplace. concentrates on fixing quality system defects and product/service nonconformities.

Baldrige Criteria for Performance Excellence

focus on performance excellence for the entire organization in an overall management framework. identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness.

Benefits of Baldrige Competition

A primary goal of the Program is to encourage many organizations to improve on their own by equipping them with a standard template for measuring their performance and their progress toward performance excellence. Financial success Winners share their knowledge

The process motivates employees

The process provides a well-designed quality system

The process requires obtaining data

The process provides feedback
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Total Quality Management - Spring 2010

Who Can Apply for the Baldrige Award?

Manufacturing Service Small business (manufacturing or service) Education Health care

What Should You Know About the Baldrige Criteria?

Used as an assessment tool

Used to identify Award recipients Basis for giving feedback to applicants Three versions: health care, education, and business Organizational Profile and Seven Categories compose an integrated framework Updated regularly

Category 1 (Leadership)

Examines how senior leaders address organizational values, directions, and performance expectations, as well as a focus on customers and stakeholders, empowerment, innovation, and learning. Also examined are your organizations governance and how public and community responsibilities are addressed.

Category 2 (Strategic Planning)

Addresses how your organization develops strategic objectives and action plans. Also examine as to how the chosen strategic objectives and action plans are deployed and how progress is measured

Category 3: Focus on Customers, and Markets Addresses how an Organization Determines Requirements, Expectations, and Preferences of Customers and Markets

Category 4: Measurement, Analysis, and Knowledge Management

Examines how your organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets.

Category 5: Staff Focus Addresses how your organizations work systems and staff learning and motivation enable all staff to develop and utilize their full potential in alignment with the organizations overall objectives and action plans. Also examined are your organizations efforts to build and maintain a work environment and staff support climate conducive to performance excellence and to personal and organizational growth.

Category 6: Process Management

Process Management is the focal point within the Criteria for examining all key aspects of process management, including key health care, business, and other support processes for creating value for customers and the organization.

Category 7: Organizational Performance Results

Addresses your organizations performance and improvement in six key areas. Also examined are performance levels relative to those of competitors and other organizations providing similar Products and services.

What makes the Baldrige Criteria different?

Key Characteristics focus on results are non-prescriptive

are adaptable
support a systems perspective support goal-based diagnosis

Benefits of Self-Assessment and Applying for the Award

Identify successes and opportunities for improvement Jump-start a change initiative Focus your organization on common goals Gain an outside perspective Learn from feedback Enhance organizational learning

The Feedback Report: Your Greatest Benefit

Written assessment of strengths and opportunities for improvement Compiled by a team of expert Examiners The report includes
Key Themes Summary
Comments Individual Scoring Range Scoring Distribution