1. 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. 2 Pearl River

3. 3 Pearl River School District 1989 1992 1994 1995 1997 1999 2001 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. 4 Pearl River School District Student Achievement, Market Share, Stakeholder Satisfaction 42% 90% 71% 93% 55% 63% 35% 45% 55% 65% 75% 85% 95% 19912004 Regents Diploma RateMarket ShareBudget Vote Plurality

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

6. 6 Chugach

7. 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. 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. 9 Lessons Learned 100% target  Good State Top 3%

10. 10 Results  Good 90% target

11. 11 Measurement/Results Market Performance Operating Cost Per Student Overall ISAT Student Performance Cost Per Percentage Point Performance D15$9,35883.6$111.93 District A$9,24077.5$119.23 District B$9,11876.9$118.57 District C$8,40668.7$122.36 State$8,19562.7$130.70 Market Performance Operating Cost Per Student Overall ISAT Student Performance Cost Per Percentage Point Performance D15$9,35883.6$111.93 District A$9,24077.5$119.23 District B$9,11876.9$118.57 District C$8,40668.7$122.36 State$8,19562.7$130.70 Market Performance Operating Cost Per Student Overall ISAT Student Performance Cost Per Percentage Point Performance D15$9,35883.6$111.93 District A$9,24077.5$119.23 District B$9,11876.9$118.57 District C$8,40668.7$122.36 State$8,19562.7$130.70

12. 12 Pal’s Fast Food

13. 13 Higher is Better Pal’s Fast Food - Customer Counts 199619971998199920002001 Customers Pals Best Competitor

14. 14 Pal’s Fast Food Complaints per 1000 Customers Lower is Better 14 1995199619971998199920002001 Pal's Best Competitor

15. 15 Boeing

16. 16 Before Baldrige After Baldrige 19921993 19941995199619971998 $ in Millions PLANACTUALS C-17 Earnings Performance

17. 17 WHAT’S THE CORRELATION? 200 400 450 500 550 600 0 1 2 3 4 5 6 7 1992199319941995199619971998 1999 0 5 15 20 25 10 300 Assessment Score RONA Cost Of Quality ($M/unit) It appears to correlate! ROS

18. 18 Boeing Aerospace Support’s Revenue Performance 2000200120022003 PLANACTUALSAVG GROWTH Started Baldrige

19. 19 Boeing Aerospace Support’s Earnings Performance 2000200120022003 PLANACTUALS Started Baldrige

20. 20 50% 50 54 58 62 66 19992000 2002 2003 2001 EI ESI Started Baldrige Boeing Aerospace Support’s employees are more motivated

21. 21 Baldrige Stock Index

22. 22 THE BALDRIGE STOCK INDEX Percent Return On Shareholder Investment Whole Company Recipients 1991-01 Sites Visited 1991-01 Award Recipients S&P 500 Baldrige Index Outperforms S&P 500 by 2.94 to 1 for the Same Period 0 100 200 300 400 500 600 All Recipients 1991-01

23. 23 Georgia Tech Study

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

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