2012 EXAMINER TRAINING 2012 EXAMINER TRAINING The Criteria for Performance Excellence Presented by The Granite State Quality Council and The Northern New England Alliance for Excellence

2 Agenda  Welcome and Overview Malcolm Baldrige: Foundation and Fundamentals Criteria for Performance Excellence –Core Values and Concepts –The Framework –Categories and Items: A Walkthrough –Linkages and Integration –Scoring What is a Baldrige Application? The Role of a Baldrige Examiner Wrap-up and Next Steps

3 Welcome & Overview Welcome Introductions –Baldrige Experience or Knowledge –Expectations of Workshop Workshop Objective and Agenda

4 Introduction:Your Facilitator Anne Warner: Dairy Farm to High Tech to Performance Excellence National Baldrige Examiner 2003 – 2007, 2009, 2010, 2012 –Senior Examiner 2007, 2009; Alumni 2010, 2012 Granite State Quality Council 1998 – Present –Examiner, Board Member, Executive Director Vermont Council for Quality: Lead Trainer State Examiner: CA, NH, MA Examiner Training: NH, MA, VT, CT

5 Introduction: Participants

6 Workshop Objective Gain a better understanding of the Malcolm Baldrige Criteria for Performance Excellence in order to –Evaluate organizations –Build expertise To help your organization To enhance your career

7 Agenda Welcome and Overview  Malcolm Baldrige: Foundation and Fundamentals Criteria for Performance Excellence –Core Values and Concepts –The Framework –Categories and Items: A Walkthrough –Linkages and Integration –Scoring What is a Baldrige Application? The Role of a Baldrige Examiner Wrap-up and Next Steps

"The economic liberty and strong competition that are indispensable to economic progress were principles that "Mac" Baldrige stressed…" Ronald Reagan

Malcolm Baldrige Award Organization A Public – Private Partnership Department of Commerce ….. Technology Administration Department of Commerce ….. Technology Administration Board of Overseers Board of Overseers National Institute of Standards & Technology BNQP Board of Examiners Judges Senior Examiners Examiners Board of Examiners Judges Senior Examiners Examiners Contractor ASQ Contractor ASQ Foundation for the Malcolm Baldrige National Quality Award Foundation for the Malcolm Baldrige National Quality Award Baldrige Award Winners Baldrige Award Winners Cooperating Organizations - Professional Societies - Trade Associations - State and Local Networks Cooperating Organizations - Professional Societies - Trade Associations - State and Local Networks

Integrated Systems A helpful analogy... (Concept by Martin Stankard, Productivity Development Group)

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12 Integrated Systems are founded on Quality and Continuous Improvement System: The Organization as a System: sustainable success : For sustainable success combine: Culture Culture of the organization Competency in Competency in what the organization does Measurement and use of Data Appropriate Measurement and use of Data

13 Integrated cycles of improvement lead to Performance Excellence Plan (1) Act (4) Do (2) Check (3) Plan Act Do Check Plan Act Do Check Plan Act Do Check Plan Act Do Check P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C P A D C A P D C Performance Excellence

14 Agenda Review Welcome and Overview Malcolm Baldrige: Foundation and Fundamentals  Criteria for Performance Excellence –Core Values and Concepts –The Framework –Categories and Items: A Walkthrough –Linkages and Integration –Scoring What is a Baldrige Application? The Role of a Baldrige Examiner Wrap-up and Next Steps

15 The Criteria for Performance Excellence A structured approach to addressing key customer requirements and key operational requirements…built around cycles of learning

16 Criteria for Performance Excellence What are the Criteria? Core Values and Concepts Baldrige Framework Categories and Items

17 The Criteria for Performance Excellence : Defines a comprehensive, integrated management system Built on Core Values and Concepts Consists of 7 Categories that define your operations and results Value & Sustainability Customers Employees Stakeholders Improvement: Effectiveness Capabilities Learning Personal Organizational Performance Excellence A framework that ANY organization can use to improve overall performance and grow its own level of excellence Uses: Guidance Assessment Tailored to Business, Health Care and Education –Business includes for profit and not-for-profit

18 What are The Criteria? Define performance excellence Made up of results-oriented requirements Non-prescriptive and adaptable Support a systems perspective and goal alignment Provide a common language and framework Based upon a set of core values

19 Core Values and Concepts Embedded beliefs and behaviors found in high performing organizations Foundation of a results-oriented framework Creates basis for action and feedback

20 Core Values Visionary Leadership Customer Driven Excellence Organizational and Personal Learning Valuing Workforce Members and Partners Agility Focus on the Future Managing for Innovation Management by Fact Societal Societal Responsibility (and Community Health) –Impact of products/ operations –Contribution to environmental, social, and economic systems Focus on Results and Creating Value Systems Perspective Page 49 – 2011/12 Criteria Page 49 - Health Care Page 49 - Education

21 Criteria – page 50

Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction (Concept by Martin Stankard, Productivity Development Group) 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information Baldrige: An Integrated System

23 The Three Criteria Versions Primary Outcomes: Product Core Values: Customer-Focused Excellence Societal Responsibility Primary Outcomes: Student Learning Core Values: Student-Centered Excellence Societal Responsibility Primary Outcomes: Health Care Core Values: Patient-Focused Excellence Societal Responsibility & Community Health

24 Three Versions - Tailor Sector Language Differences becoming smaller Business/ NonProfitEducationHealth Care Customer: Product/ Service User Customer: Student and Stakeholder Customer: Patient and Other Workforce: Workforce: Employee, Contract, Volunteer Workforce Workforce: Faculty, Staff, Volunteer Workforce Workforce: Staff, Contract, Volunteer Core Competencies: Strategically Important Capabilities Core Competencies: Student Learning Core Competencies: Health Care Services Product OutcomesStudent Learning OutcomesHealth Care Outcomes Financial and Market Outcomes Budgetary, Financial, and Market Outcomes Financial and Market Outcomes

25 Criteria Structure: Defines The Organization’s Operations and Results 1 Leadership 4 Meas, Anal & Knowl Mgmt 2 Strategic Planning 3 Customer Focus 5 Workforce Focus 6 Operations Focus 7 Results 7 Categories 17 Items 40 Areas to Address 4.1 Meas., Anal & Improvement of Org Performance 4.2 Mgmt of Info, Knowledge, & Information Technology 4.1a Performance Measurement 4.1b Performance Analysis & Review 4.1c Performance Improvement

26 Reading the Criteria Item Number and Name Areas To Address Questions Notes:

27 Agenda Review Welcome and Overview Malcolm Baldrige: Foundation and Fundamentals  Criteria for Performance Excellence Core Values and Concepts The Framework  Categories and Items: A Walkthrough –Linkages and Integration –Scoring What is a Baldrige Application? The Role of a Baldrige Examiner Wrap-up and Next Steps

28 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER & MARKET FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information P.1 Organization Description Describe your organization’s operating environment Describe your key relationships with customers, suppliers, partners, and stakeholders P.2 Organizational Situation Describe your organization’s Competitive environment Key strategic challenges and advantages System for performance improvement

29 Preface: Organizational Profile P.1 Organization Description: What are your key organizational characteristics? a. Organizational Environment Describe your organization’s operating environment: (1) Product Offerings (provided to customers in the form of products programs, services, or projects) (2) Vision and Mission: Culture, Purpose, Vision, Mission, Values, & Core Competencies (3) Workforce Profile & Factors of Engagement (4) Assets: Technologies, Equipment, and Facilities (5) Regulatory Requirements

30 Preface: Organizational Profile P.1 Organization Description (continued) b. Organizational Relationships Describe your key relationships with customers, suppliers, partners, and stakeholders: (1) Organizational Structure and Governance System (2) Key Customer and Stakeholder Groups and Market Segments (3) Suppliers, Partners, and Collaborators; their role; your requirements

31 Preface: Organizational Profile P.2 Organizational Situation: What is your organization’s strategic situation? a. Competitive Environment Describe your competitive environment: (1) Competitive Position (2) Competitiveness Changes (3) Comparative Data: Sources for Comparative and Competitive Data

32 Preface: Organizational Profile P.2 Organizational Situation (continued) b. Strategic Context (1)Key Business/Operations/Human Resource/Societal Responsibility strategic challenges and advantages c. Performance Improvement System (1) Key elements including for evaluation, learning, and innovation

33 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information Leadership Triad 3 CUSTOMER FOCUS 1.1 Senior Leadership (70 pts.) Describe how senior leaders guide and sustain your organization. Describe how senior leaders communicate with your workforce and encourage high performance 1.2 Governance and Societal Responsibilities (50 pts.) Describe your organization’s Governance system approach to leadership improvement Describe how your organization assures legal and ethical behavior fulfills societal responsibilities supports key communities

Senior Leadership How do Senior Leaders Lead? a. Vision, Values, and Mission (1) Set and deploy Vision and Values to all stakeholders (Leadership System) (2) Promote & demonstrate Legal and Ethical Behavior (3) Create a Sustainable Organization through: Organizational Performance Improvement Accomplishment of Mission, objectives, innovation. Leadership, agility A workforce culture that fosters customer engagement Organizational & workforce learning Enhancing personal leadership and developing new leaders Leadership

Senior Leadership b. Communication and Organizational Performance (1) Communication for high performance Senior leaders communicate with and engage entire workforce; take an active role in reward and recognition (2) Create a Focus on Action to Accomplish objectives Improve performance; identify needed actions Attain the vision Create & balance value for customers and stakeholders Leadership

Governance and Societal Responsibility How do you govern and fulfill your societal responsibilities? a. Organizational Governance (1) Review Governance System and achieve Management and fiscal accountability Transparency in operations Independence of audits Protection of stakeholder interests (2) Performance Evaluation: Evaluate and improve effectiveness of Senior leaders and board members Leadership and governance systems Leadership

Governance and Societal Responsibility b. Legal and Ethical Behavior (1) Legal and Regulatory Behavior: Proactively address adverse impacts of products and operations including: Anticipation of public concerns Surpassing compliance Management of risks (2) Promote and ensure Ethical Behavior Enable and monitor behavior Monitor and respond to breaches Leadership Performance Measures

Governance and Societal Responsibility c. Societal Responsibility and Support of Key Communities (1)Societal Well-Being: Benefit of environmental, social, and economic systems considered as part of strategy and operations (2)Community Support: Identification, active support and strengthening of Key communities Related to core competencies Leadership

39 Key Excellence Indicators: Leadership Personal commitment and involvement Effective communication of organization’s values, direction, & performance Role model values & behaviors Align work with organizational values & goals Use of personal and organizational review findings to set focus & actions for improvement Focus on learning at all levels of the organization Accountability to all stakeholders Role model and promote good citizenship

40 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information 2.1 Strategy Development (40 pts) Describe how your organization establishes a strategy that addresses strategic challenges and leverages advantages. Summarize your organization’s key strategic objectives and their related goals 2.2 Strategy Implementation (45 pts) Describe how your organization converts is strategic objectives into action plans Summarize action plans, deployment, and related measures/indicators Project future performance relative to key comparisons of measures/indicators Leadership Triad

Strategy Development How do you develop your strategy? a. Strategy Development Process (1) Strategic Planning Process Steps, participants, timelines Determination of blind spots, core competencies, strategic challenges/advantages Identification of and addressing time horizons (2) Strategy Considerations: Address all key elements, including data gathering and analysis SWOT & Potential shifts Sustainability & needed core competencies Ability to execute the plan Strategic Planning

Strategy Development b. Strategic Objectives (1) Develop clear Key Strategic Objectives, timetables, and goals (2) Strategic Objective Considerations: Address Strategic Challenges and Advantages & opportunities for innovation Capitalize on core competencies Balance needs –Short- and long-term –All stakeholders Adaptability to sudden shifts Strategic Planning

Strategy Implementation How do you implement your strategy? a. Action Plan Development and Deployment (1) Action Plan Development and relationship to Strategic Objectives Deploy (2) Action Plan Implementation: Deploy to appropriate stakeholders; ensure sustainable outcomes resources (3) Resource Allocation: Ensure, allocate and, manage needed resources; balance new and existing obligations; manage risks Workforce Plans (4) Establish Workforce Plans, capability and capacity Measures (5) Performance Measures to track achievement and effectiveness Action Plan Modification (6) Action Plan Modification if change is required Strategic Planning Performance Measures

Strategy Implementation b. Performance Projection –Related to Identified Action Plan measures/indicators –For short- and longer-term planning timelines –Comparisons with competitors/benchmarks/goals –Address potential gaps Strategic Planning

Planning resources results SWOT Competition Market Technology Core Competencies Strategic Challenges & Advantages Strategic Objectives & Goals Action Plan Action Plan Action Plan Action Plan Short & Long Term Resources Individual Plans Measures P e r f o r m a n c e P r o j e c t i o n s

46 Key Excellence Indicators: Strategic Planning Balance of short- and long-term view Incorporation of customer, supplier, market, workforce & partner input Systematic approach to addressing all sources of risk Strong involvement of workforce and stakeholders Refinement of the planning process Measurable, outcome-oriented, realistic strategic objectives Alignment of strategy and actions; objectives and plans Available, committed resources

47 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information 3.1 Voice of the Customer (45 pts) Describe how your organization listens to customers and gains satisfaction and dissatisfaction information 3.2 Customer Engagement (40 pts) Describe how your organization determines product offerings and communications mechanisms to support customers Describe how your organization builds a customer relationships Leadership Triad

Voice of the Customer How do you obtain and use information from your Customers? Listening a. Customer Listening (1)Listening to Current Customers to obtain actionable information How do methods vary by customer group and lifecycle Follow up on quality, support and transactions (touch points) (2) Listening to Potential Customers including former and customers of competitors to obtain actionable information and feedback Customer Focus

Voice of the Customer Satisfaction Engagement b. Determination of Customer Satisfaction and Engagement (1) Determine Customer Satisfaction and Engagement considering different groups and segments; to exceed expectations (2) Obtain and use Satisfaction Relative to Competitors (3) Determine actionable Dissatisfaction information relative to competitors Customer Focus

Customer Engagement How do you engage customers to serve their needs and build relationships? a. Product Offerings and Customer Support Identify innovate Product Offerings to (1) Identify and innovate Product Offerings to Meet and exceed customer/market requirements and expectations Attract new customers and expand existing relationships Determine Customer Support mechanisms (2) Determine Customer Support mechanisms to seek information, provide feedback, get support, and do business Differentiate between customer groups Determine customer support requirements; deploy to those who support customers (3) Use information for Customer Segmentation (4) Use Customer Data to improve marketing, customer-focus & innovation Customer Focus

Customer Engagement Customer Relationships b. Building Customer Relationships (1) Relationship Management: market, build, and manage to Acquire customers and build market share Retain customers & ensure a consistently positive customer experience Increase customer engagement Complaint Management (2) Complaint Management Resolve promptly and effectively Recover confidence; enhance satisfaction and engagement Customer Focus

52 Key Excellence Indicators: Customer Focus In-depth knowledge of customers by segment Multiple listening posts to identify customer & stakeholder requirements Prioritized needs of current and potential customers Proactive listening to and learning from customers Focus on enhancing customer relationships and loyalty Ease of customer contact Effective and prompt resolution of complaints Measurement of both satisfaction and dissatisfaction indicators

53 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information 3 CUSTOMER FOCUS 4.1 Measurement, Analysis, and Improvement of Organizational Performance (45 pts) Describe how your organization measures, analyzes, reviews, and improves its performance  through the use of data and information  at all levels and in all parts of the organization 4.2. Management of Information, Knowledge and Information Technology (45 pts) knowledge assetsDescribe how your organization builds and manages its knowledge assets Describe how your organization ensures the quality and availability of  data, information, software, and hardware  for your workforce, suppliers, partners, collaborators, and customers

Measurement, Analysis, and Improvement of Organizational Performance How do you measure, analyze, and then improve organizational performance? a. Performance Measurement (1) Performance Measures: Select, collect, align, and integrate data and information to Track daily operations and strategic performance Identify measures, frequency, and use Support decision making and innovation (2) Select and use Comparative Data and information to support decision-making and innovation (3) Voice-of-the-Customer Data to support decision making and innovation (4) Performance Measurement System Agility to respond to rapid or unexpected changes Measurement, Analysis, and Knowledge Management Performance Measures

Measurement, Analysis, and Improvement of Organizational Performance b. Performance Analysis and Review (1) Review performance and capabilities to Ensure valid conclusions Look at all aspects of organizational success (competitive, financial, etc.) Assess ability to respond to changing needs & environment c. Performance Improvement: use review findings for (1)Best Practice Sharing: lessons learned across the organization (2)Projection of Future Performance (3)Continuous Improvement and Innovation Measurement, Analysis, and Knowledge Management Performance Measures

Management of Information, Knowledge and Information Technology How do you manage your information, organizational knowledge, and information technology? a. Data, Information, and Knowledge Management (1) Properties: Ensure data, information, and knowledge is Accurate, reliable, timely, secure and confidential (2) Data and Information Availability to appropriate workforce and stakeholders (3) Knowledge Management to accomplish Collection and transfer of workforce knowledge Transfer knowledge to and from stakeholders Identify, share, and implement best practices Assemble, and transfer knowledge for innovation & strategic planning Measurement, Analysis, and Knowledge Management

57 b. Management of Information Resources and Technology (1) Hardware and Software Properties: reliable, secure, and user-friendly (2) Emergency Availability of systems to serve customer and business needs Hardware and software systems Data and information 4.2 Management of Information, Knowledge and Information Technology Measurement, Analysis, and Knowledge Management

58 How does the System Foundation connect the Leadership and Results Triads?? 4.1 Turn Data into a Strategic Advantage  Measure the right stuff  Select, collect, align, integrate  Daily & long-term  Compare  Use it to create a current picture and project the future  Review performance and capabilities  Translate performance into priorities for improvement 4.2 Get the right information to the right people at the right time  Availability  How? To Who? Format?  Emergency/contingency?  Current?  Data quality  Accuracy, reliability, timeliness, security  Organize & Manage for Transfer and Sharing  Employees, customers, suppliers, partners

59 Key Excellence Indicators: Measurement, Analysis, & Knowledge Management Use of fact-based decision making Collection of actionable data Use of multiple aligned and interlinking measures Wide deployment and accessibility of data and information Strong analysis capability Benchmarking of “best-in-class” processes and results Reliable, secure, and user-friendly systems Organizational knowledge captured and shared internally and externally

60 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information Results Triad 3 CUSTOMER FOCUS 5.1 Workforce Environment (40 pts) Describe how your organization manages workforce capability and capacity to accomplish the work of the organization Describe how your organization maintains a safe, secure, and supportive work climate 5.2Workforce Engagement (45 pts) Describe how your organization does the following to achieve high performance engages, compensates, rewards and develops your workforce assesses workforce engagement and uses the results develops the workforce, including leaders

Workforce Environment How do you build an effective and supportive workforce environment? a.Workforce Capability and Capacity Assess (1) Assess Capability and Capacity needs, skills, competencies and staffing levels Recruithireretain (2) New Workforce Members: Recruit, hire, and retain workforce; include diverse ideas and cultures in workforce Manageorganize (3) Work Accomplishment: Manage and organize workforce to achieve work and Capitalize on core competencies Reinforce customer and business focus Exceed performance expectations Address strategic challenges and action plans Preparefor changing (4) Workforce Change Management : Prepare workforce for changing capabilities and capacities Ensure continuity Prevent and minimize impact of workforce reductions Prepare for and manage growth Workforce Focus

Workforce Environment b. Workforce Climate (1) Workplace Environment: Ensure and improve workplace accessibility, health, safety, and security Consider different workplace environments (2) Workforce Policy and Benefits: Support workforce with policies, services, and benefits tailored to diverse workgroups Workforce Focus Performance Measures & Goals

Workforce Engagement How do you engage your workforce to achieve organizational and personal success? a. Workforce Performance Determine (1) Determine Elements of workforce Engagement and satisfaction Consider different workforce groups and segments Foster (2) Foster an Organizational Culture characterized by open communication, high performance work and an engaged workforce Benefit from diverse ideas, culture and thinking Support (3) Support high performance and engagement through workforce Performance Management Include reward, recognition, and incentive Reinforce customer and business focus and plans Workforce Focus

Workforce Engagement Assess b. Assessment of Workforce Engagement (1) Assessment of Engagement: Formal and informal assessment methods/measures to determine & improve workforce engagement and satisfaction Consider different workforce groups and segments Include indicators such as retention, absenteeism, safety, productivity (2) Correlation with Business Results: relate workforce assessment findings to key business results to identify improvement opportunities in both areas Workforce Focus Performance Measures

Workforce Engagement Develop c. Workforce and Leader Development (1) Learning and Development System: Workforce & Leader development and learning systems that address Core competencies, challenges, action plans; customer focus; ethical business practices Improvement and innovation; transfer & reinforcement of knowledge/skills Learning & Development needs (2) Learning and Development Effectiveness: evaluate effectiveness & efficiency of system (3) Management of Career Progression and succession planning Workforce Focus

66 Key Excellence Indicators: Workforce Focus Recognition of all people actively involved in accomplishing the work (workforce) as “internal customers” An understanding of workforce requirements Strong commitment to workforce satisfaction, motivation, well-being, and morale Commitment to workforce and leader development Links between individual and organizational learning Engagement and Empowerment of workforce Alignment between workforce and business practices

67 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information Results Triad 3 CUSTOMER FOCUS 6.1 Work Systems (45 pts) Describe how your organization designs, manages, and improves its work systems to  deliver customer value  prepare for potential emergencies  achieve organizational success and sustainability 6.2 Work Processes (40 pts) Describe how your organization designs, manages, and improves its key work processes to  deliver customer value  achieve organizational success and sustainability

Work Systems How do you design, manage, and improve your work systems? a.Work System Design work systems (1) Design Concepts: Design and innovation of work systems (how work is accomplished) Capitalize on core competencies Determination of key internal work processes and externally resourced processes (2) Determine Work System Requirements incorporating input from key stakeholders b. Work System Management (1)Work System Implementation: manage and improve to deliver Customer value, fiscal & organizational success, sustainability (2) Cost Control: control work system costs including Prevention of defects, service errors, rework, customer impact Minimize cost of inspections, tests, audits Operations Focus Requirements Work Systems

69 Work Systems Example

Work Systems c. Emergency Readiness (1) Ensure work system and workplace preparedness for disasters or emergencies Consider prevention, management, continuity of operations and recovery Operations Focus

Work Processes How do you design, manage, and improve your key work processes? a.Work Process Design Design innovation (1) Design Concepts: Design and innovation of work processes to meet key requirements incorporating Organizational knowledge, product excellence, technology, agility, efficiency, and effectiveness Factors of efficiency & effectiveness, cycle time, productivity, cost control (2) Determine Work Process Requirements Operations Focus Key work processes & requirements

Work Processes b. Work Process Management Implementation (1) Key Work Process Implementation: Related to work systems Align day to day operation with process requirements Incorporate appropriate stakeholder input Determine and use measures for control and improvement (2) Supply Chain Management: ensure suppliers are qualified and enhance performance Supplier Evaluation Dealing with poor performing suppliers Improve (3) Process Improvement to achieve better performance, reduce variability and improve products. Performance & In-Process Measures Operations Focus

73 Key Excellence Indicators: Operations Focus Well-defined product/service, business, and support processes Focus on processes that create value for all key stakeholders Quality designed into services and processes Focus on continuous improvement, cycle time reduction, and productivity Strong integration of prevention, correction, and improvement into daily operations Partnering with suppliers and stakeholders

74 Category 7 Results Measure Outcomes of Processes in Categories 1-6 If processes are important to the organization, there should be corresponding results Product Process Leadership Customer-Focused Workforce Financial and Market } Results (linkages)

75 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER & MARKET FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information The processes defined in the other Categories produce the Results Results reflect the organization’s actual performance Results serve as the basis for leaders to monitor progress against goals and make adjustments to increase performance Value-added Results Include Levels Trends Comparisons Linkages Segmentation Results Triad

76 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER & MARKET FOCUS 5 WORKFORCE FOCUS 6 PROCESS MGMT. 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information Category 7: Results 450 Points 7.1 Product and Process Outcomes (120 pts.) 7.2 Customer-Focused Outcomes (90 pts.) 7.3 Workforce Outcomes (80 pts.) 7.4 Leadership and Governance Outcomes (80 pts.) 7.5 (Budgetary) Financial and Market Outcomes (80 pts.) Results Triad

77 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information 7.1 Product and Process Outcomes (120 pts) SummarizeSummarize key product performance and process results SegmentSegment by product offerings, customer groups, and market; and by process type and location as appropriate comparative dataInclude appropriate comparative data 7.2 Customer-Focused Outcomes (90 pts) SummarizeSummarize key customer satisfaction, dissatisfaction, and engagement results SegmentSegment by product offerings, customer groups, and market segments as appropriate comparative dataInclude appropriate comparative data Results Triad

78 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information 7.3 Workforce-Focused Outcomes (80 pts) SummarizeSummarize key results for workforce engagement and environment SegmentSegment results to address the diversity of your workforce, key workforce groups and segments as appropriate comparative dataInclude appropriate comparative data 7.4 Leaderships and Governance Outcomes (80 pts) SummarizeSummarize key governance and senior leadership and Governance results including Ethical behavior Fiscal accountability Legal compliance Societal responsibility and support of key communities SegmentSegment by organizational units as appropriate comparative dataInclude appropriate comparative data Results Triad

79 Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information 7.5 Financial and Market Outcomes (80 pts) SummarizeSummarize key financial and marketplace performance results SegmentSegment by customer and market groups as appropriate comparative dataInclude appropriate comparative data

80 Linking Processes to Results Process ItemResults Item 1.1 Senior Leadership 1.2 Governance and Societal Responsibilities 7.4 Leadership /Governance Outcomes 2.1 Strategy Development 2.2 Strategy Implementation 7.5 Financial/Market Outcomes 7.1 Product/Process – Strategy Implementation Others based on Strategic Objectives 3.1 Voice of the Customer 3.2 Customer Engagement 7.2 Customer- Focused Outcomes 4.1 Measurement, Analysis, and Improvement of Organizational Performance 4.2 Management of Information, IT, and Knowledge Drives Process for All Results 5.1 Workforce Environment 5.2 Workforce Engagement 7.3 Workforce-Focused Outcomes 6.1 Work Systems 6.2 Work Processes 7.1 Product/Process Outcomes

Driver ORGANIZATIONAL PROFILE: ENVIRONMENT, RELATIONSHIPS & CHALLENGES Direction (Concept by Martin Stankard, Productivity Development Group) 2 STRATEGIC PLANNING 1 LEADERSHIP 3 CUSTOMER FOCUS 5 WORKFORCE FOCUS 6 OPERATIONS FOCUS 7 RESULTS 4 MEASUREMENT, ANALYSIS, & KNOWLEDGE MANAGEMENT Information The Baldrige Framework

The Baldrige Framework – A Systems Perspective 4 Measurement, Analysis, and Knowledge Management 5 Workforce Focus 3 Customer Focus 7 Business Results 7 Business Results 2 Strategic Planning 1 Leadership 6 Operations Focus Organizational Profile: Environment, Relationships, and Challenges Page iv in your Criteria Books

83 Agenda Review Welcome and Overview Malcolm Baldrige: Foundation and Fundamentals  Criteria for Performance Excellence Core Values and Concepts The Framework Categories and Items: A Walkthrough  Linkages and Integration –Scoring What is a Baldrige Application? The Role of a Baldrige Examiner Wrap-up and Next Steps

84 Linkages The Criteria helps you identify how high- performing organizations align every part of the framework with every other part of the framework

85 Linkages: The Added Value of Baldrige IntegratedIntegrated implies Linkages No category or item stands by itself Criteria questions point out key linkages Exposes strengths and “missing links” or gaps All based on that Organization’s Profile

86 The Criteria Drive Focus and Alignment Coral Springs Example Organization Profile (What is Important?) Process (How is it done?) As a result of the pending tax reform legislation, the City is updating the five year forecast and is analyzing its impact on workforce needs. Strategy Deployment: Available Resources (2.2a) Workforce Focus: Capability/ Capacity (5.1a) Operating Millage Rate Residents Value Rating (Taxes vs. Services ) Results (How well are you doing?) What are your Key Strategic Challenges (P2b)? State Tax Reform Legislation limiting property tax revenue What are your current levels and trends in key measures of Customer, Financial & Workforce? Coral Springs Response Coral Springs Response Employee Turnover & Satisfaction The Right Framework The Right Questions The Right Response

87 Linkage: Organizational Profile -> Processes -> Results What are your Key Strategic Challenges (P2b)? Organization Profile How does development and learning system address strategic challenges (5.1)? Process Full-time teacher with NBPTS certification coordinates induction/mentoring program corresponding to state’s 4-year probationary period (p22) Response Satisfaction with New Employee Orientation Program (fig 7.4-6) Certified Staff Turnover (fig 7.4-1) Results Attracting and Retaining high- performance staff (page v) 7.4 What are your current levels and trends in key measures of faculty and staff well-being and satisfaction? Response Attrition percentage for first year teachers (fig )

88 Example: Key Process Linkages Senior Leadership 1.1a(1): Deploying vision and values to all workforce, key suppliers and partners, and customers If truly deployed you will see evidence in many places –Governance and Societal Responsibility 1.2: Governance, ethical behavior and community support that supports vision and values –Strategic Planning 2.1 & 2.2: Developing and deploying a strategy aligned with vision and values –Customer Engagement 3.2: Identifying, listening to, and learning from customers –Workforce Engagement 5.2: Fostering and managing a high performance culture –Workforce Environment 5.1: Hiring people that fit the culture –Work System 6.1: Defining Core Competencies and Work Processes for success and sustainability

89 Key Sections of the Criteria booklet Criteria for Performance Excellence Pages Category and Item Descriptions –Pages 34 – 48 Core Values & Concepts Pages Glossary of KEY TERMS –Pages  Scoring System  Pages

90 The Performance Excellence Journey BeginningOn the RoadMature Anecdotal evidence, beginning of systematic approaches Clear evidence of effective, systematic approaches fully responsive to current and changing business needs Little or no deploymentApproaches consistently deployed to all relevant work units Reaction to problems; early stages of an improvement system Fact-based, systematic evaluation and improvement process; strong refinement and innovation Little or no alignment of key processes and work units Approaches, processes, and work units fully aligned and integrated with organizational needs Maturity of Processes

91 Scoring Reflects Process Maturity 1000 point scale Perfection does not exist 550 points for Process –Approach, Deployment, Learning & Integration 450 points for Results –Importance, Levels, Trends, & Comparisons Scoring Guidelines on Page 68 & 69 in Business/Nonprofit Criteria I am careful not to confuse excellence with perfection. Excellence, I can reach for; perfection is God's business. Michael J. Fox

92 Page 3 - Criteria Criteria for Performance Excellence — Point Values Categories and Items Point Values 1 Leadership Senior Leadership Governance and Societal Responsibilities50 2 Strategic Planning Strategy Development Strategy Implementation45 3 Customer Focus Voice of the Customer Customer Engagement40 4 Measurement, Analysis, and Knowledge Management Measurement, Analysis, and Improvement of Organizational Performance Management of Information, Knowledge, and Information Technology45 5 Workforce Focus Workforce Environment Workforce Engagement45 6 Operations Focus Work Systems Work Processes40 7 Results Product and Process Outcomes Customer-Focused Outcomes Workforce-Focused Outcomes Leadership and Governance Outcomes Financial and Market Outcomes80 TOTAL POINTS1,000

93 Scoring: Reflects Organization’s Maturity in the Journey 1.Level of Response to Item Requirements 2.Two dimensions of scoring –For Process Items (Categories 1-6) Approach Deployment Learning Integration –For Results Items (Category 7) Levels Trends Comparisons Integration

94 Reading the Criteria Item Number and Name Areas To Address Questions Notes:

95 Scoring: Level of Response Basic Requirements Multiple Requirements Multiple Requirements Notes: Overall Requirements

96 A-D-L-I: The PDSA of High Performing Organizations Approach Are the methods to accomplish processes: -Appropriate? -Effective? -Systematic (repeatable, fact-based)? Deployment The extent to which an approach is applied including: Breadth Depth Consistency Learning Knowledge or skills acquired through cycles of evaluation, study, experience, and innovation. Effective learning leads to: Refinement Breakthrough Sharing Integration Extent of alignment (harmonization) Alignment of approaches with needs Complementary measures and systems across processes and work units Harmonization of plans, processes, actions, and results in support of organization-wide goals

97 Levels The current level of Performance Trends Rate of performance improvements; sustainability of good performance Breadth (i.e., the extent of deployment) of performance results Comparisons Relative Performance To appropriate comparisons (competitors or similar organizations) To benchmarks or industry leaders Integration The Extent to which results Address important performance requirements identified in the Organizational Profile and Process Items (including segmentation) Include valid indicators of future performance Are harmonized across processes and work units to support organization-wide goals Le-T-C-I Four Holistic Factors Used in Scoring Results

98 Agenda Review Welcome and Overview Malcolm Baldrige: Foundation and Fundamentals Criteria for Performance Excellence Core Values and Concepts The Framework Categories and Items: A Walkthrough Linkages and Integration Scoring  What is a Baldrige Application?  The Role of a Baldrige Examiner Wrap-up and Next Steps

99 What is a Baldrige Application? A narrative response to the questions of the Criteria –Eligibility forms –Glossary of Terms –Organizational Profile (5 pages) –Categories 1-7 (50 pages)

100 The Role of a Baldrige Examiner Provide objective feedback on Strengths and Opportunities for Improvement (OFIs) –First pass is based solely on the Application –A Site Visit may follow to verify and clarify feedback from Application

101 The Role of a Baldrige Examiner Auditors Black and White Look for non-Compliance Focus on process/services Examiners Subjective: feedback based on Applicant needs and goals Beyond Compliance to Excellence Help Applicant see themselves from an external perspective Non-prescriptive, non-judgmental Focus on linkages

102 The Role of a Baldrige Examiner: Ethics & Code of Conduct THREE ABSOLUTE ESSENTIALS TO THE CREDIBILITY AND PRESTIGE OF THE AWARD: –Avoid conflicts of interest –Maintain confidentiality –Uphold Code of Ethical Standards and Rules of Conduct

103 The Role of a Baldrige Examiner: Deliverables Develop Key Factors –Understand what is important to the Applicant’s success Provide Strengths and OFIs for each Item –Based on importance to Applicant and Criteria Requirements Develop Key Themes –Significant and/or cross-cutting Strengths/OFIs Feedback Report

104 Agenda Review Welcome and Overview Malcolm Baldrige: Foundation and Fundamentals Criteria for Performance Excellence Core Values and Concepts The Framework Categories and Items: A Walkthrough Linkages and Integration Scoring What is a Baldrige Application? The Role of a Baldrige Examiner  Wrap-up and Next Steps

105 Wrap-up and Next Steps Training Part 2: Introduction to Analyzing a Baldrige Application – 12:30-4:00 pm Practice and Pre-work Training Part 3: Review and Scorebook Tool –Webinar – Week of October 22 nd Preparation work for Part 4 Training Part 4: Examiner Training – putting it all together –Thursday, November 15th, White River Junction

106 Final Questions & Feedback?