1 Return on “Investing in Quality” Problem – Data and evidence are available that using the Baldrige Criteria and investing in Quality improves the performance of organizations, but apparently these data are not compelling! Objective – To develop compelling “Return on Investment” evidence that demonstrate that investment in “Quality” and using the Malcolm Baldrige Criteria is worthwhile

2 Pearl River

3 Pearl River School District School Reform Mission More Effective Schools NYS Governor’s Excelsior Award Excelsior Award Winner Palisades Institute Award Winner Baldrige Education Pilot USA Today/RIT Quality Cup Baldrige Applicant 2000Baldrige Applicant

4 Pearl River School District Student Achievement, Market Share, Stakeholder Satisfaction 42% 90% 71% 93% 55% 63% 35% 45% 55% 65% 75% 85% 95% Regents Diploma RateMarket ShareBudget Vote Plurality

5 Pearl River School District Cost Efficiency RESULTS Annual Per Pupil Expenditure vs. Consumer Price Index

6 Chugach

7 ** * Benchmark High School Graduation Qualifying Exam 2000 Chugach vs Comparable Districts 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% ChugachWrangellHainesLower Yukon Yupiit Sophomores Who Passed Reading WritingMath

8 Consolidated District 15 Fast Facts Our 20 schools: –15 elementary, 4 junior high, 1 alternative school Our enrollment: –12,956 students 37.5% minority 24.0% low-income 32.0% limited English proficiency

9 Lessons Learned 100% target  Good State Top 3%

10 Results  Good 90% target

11 Measurement/Results Market Performance Operating Cost Per Student Overall ISAT Student Performance Cost Per Percentage Point Performance D15$9, $ District A$9, $ District B$9, $ District C$8, $ State$8, $ Market Performance Operating Cost Per Student Overall ISAT Student Performance Cost Per Percentage Point Performance D15$9, $ District A$9, $ District B$9, $ District C$8, $ State$8, $ Market Performance Operating Cost Per Student Overall ISAT Student Performance Cost Per Percentage Point Performance D15$9, $ District A$9, $ District B$9, $ District C$8, $ State$8, $130.70

12 Pal’s Fast Food

13 Higher is Better Pal’s Fast Food - Customer Counts Customers Pals Best Competitor

14 Pal’s Fast Food Complaints per 1000 Customers Lower is Better Pal's Best Competitor

15 Boeing

16 Before Baldrige After Baldrige $ in Millions PLANACTUALS C-17 Earnings Performance

17 WHAT’S THE CORRELATION? Assessment Score RONA Cost Of Quality ($M/unit) It appears to correlate! ROS

18 Boeing Aerospace Support’s Revenue Performance PLANACTUALSAVG GROWTH Started Baldrige

19 Boeing Aerospace Support’s Earnings Performance PLANACTUALS Started Baldrige

20 50% EI ESI Started Baldrige Boeing Aerospace Support’s employees are more motivated

21 Baldrige Stock Index

22 THE BALDRIGE STOCK INDEX Percent Return On Shareholder Investment Whole Company Recipients Sites Visited Award Recipients S&P 500 Baldrige Index Outperforms S&P 500 by 2.94 to 1 for the Same Period All Recipients

23 Georgia Tech Study

24 Performance Measures Percentage Change GEORGIA TECH STUDY ON USE OF MB

25 So let’s Brainstorm on what else we can try!