1. Malcolm Baldrige National Quality Award
Professor: Hank Sobah
GRBUS 611

2. MBNQA Criteria for Performance Excellence
The Baldrige Criteria for Performance Excellence provide the framework and an assessment tool for understanding organizational strengths and opportunities for improvement.
Performance excellence refers to 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

3. Framework for Performance Excellence
The Baldrige Criteria are a framework for performance management that addresses all key areas of a nonprofit organization and is compatible with other performance improvement initiatives, such as ISO 9000, Lean, and Six Sigma.

4. The Criteria serve two main purposes
Identify Baldrige Award recipients to serve as role models for other organizations
Help organizations assess their improvement efforts, diagnose their overall performance management system, and identify their strengths and opportunities for improvement

5. MBNQA Criteria Drives Performance Excellence
The Criteria are the basis for conducting organizational self-assessments, for making Awards, and for giving feedback to applicants. In addition, the Criteria have three important roles in strengthening U.S. competitiveness:
help improve organizational performance practices,
capabilities, and results
facilitate communication and sharing of information on best practices among U.S. organizations of all types
to serve as a working tool for understanding and managing performance and for guiding organizational planning and opportunities for learning

6. Core Values and Concepts
The Criteria are built on the following set of interrelated Core Values and Concepts:
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 responsibility
Focus on results and creating value
Systems perspective

8. Three Versions of the Award
Business / Non-Profit
Manufacturing, Government, Service Organizations, Small Business, Charities
Education
Organizations such as business schools; community colleges; centuries-old universities; and K-12 school districts
Health Care
Service providers, single hospitals, and large health systems nationwide

9. Three Measures Approach Deployment Results
refers to the methods used by anorganization to address the Baldrige Criteria requirements.
Deployment
refers to the extent to which an approach is applied
Results
refers to outputs and outcomes achieved by an organization in addressing the requirements of a Baldrige Criteria

10. MBNQA Return on Investment at Recent Winner, Cargill
According to Jerry Rose, VP Cargill, there is a huge return on your investment in using Baldrige
Cargill color-codes its businesses based upon their degree of deployment of the Baldrige Criteria.
Gold represents businesses with a high degree of deployment
Blue represents businesses with partial deployment
White represents businesses beginning the Baldrige journey.
The next slide shows that Cargill businesses with varying degrees of deployment

11. MBNQA Return on Investment at Recent Winner, Cargill

12. MBNQA 7 Categories Leadership – 120 Points
Strategic planning Points
Customer focus – 85 Points
Measurement, analysis, and knowledge management Points
Workforce focus – 85 Points
Process management Points
Results – 450 Points

13. Criteria are Nonprescriptive and Adaptable
The focus is on results, not on procedures, tools, or organizational structure. Organizations are encouraged to develop and demonstrate creative, adaptive, and flexible approaches for meeting requirements.
Nonprescriptive requirements are intended to foster incremental and major (“breakthrough”) improvements, as well as meaningful change through innovation.
The selection of tools, techniques, systems, and organizational structure usually depends on factors such as the organization type and size, organizational relationships, your organization’s stage of development, and the capabilities and responsibilities of your workforce.
A focus on common requirements, rather than on common procedures, fosters understanding, communication, sharing, alignment, and integration, while supporting innovation and diversity in approaches.

14. Criteria for Performance Excellence Framework

15. Starts with Organizational Profile
The Organizational Profile is a snapshot of your organization, the KEY influences on HOW you operate, and the KEY challenges you face.
Helps identify potential gaps in key information and focus on key performance requirements and results
If you identify topics for which conflicting, little, or no information is available, the Organizational Profile can serve as an assessment you can use for action planning.

16. Organizational Profile Defines
Your Organizational Environment and Culture
Your Organizational Relationships
Your Competitive Environment, Opportunities and Limitations
Your Organization’s Strategic Context
Your Performance Improvement System

17. Organizational Description
Organizational Environment: your product offerings; mission, vision, and values; core competencies; workforce; technologies; equipment/facilities; and regulatory/legal environment
Organizational Relationships: your governance system, key customer groups/market segments, key product and customer-support service requirements, and key suppliers

18. Organizational Situation
Competitive Environment: your competitive position, relative size and growth, and competitors
Strategic Context: your key business, operational, and human resource strategic challenges and advantages
Performance Improvement System: your approach to evaluation and learning

19. Organizational Performance Areas
Product outcomes
Customer-focused outcomes
Financial and market outcomes
Workforce-focused outcomes
Process effectiveness outcomes, including keyoperational performance results
Leadership outcomes, including governance and societal responsibility results

20. Performance Improvement Cycles
Improvement cycles have four, clearly defined stages:
Planning, including design of processes, selection of measures, and deployment of requirements (approach)
Executing plans (deployment)
Assessing progress and capturing new knowledge, including seeking opportunities for innovation (learning)
Revising plans based on assessment findings, harmonizing processes and work unit operations, and selecting better measures (integration)

21. Systems Perspective
The Baldrige Criteria provide a systems perspective for managing your organization and its key processes
Building Blocks and Integrating Mechanism for the system is based on
Baldrige Criteria Categories
The Core Values
The Scoring Guidelines
Success is dependant on
Organization-specific attributes, competencies, objectives, action plans, and work systems
Alignment and consistency within each category
Integration of the entire management system
Systems Perspective means managing your whole organization, as well as its components, to achieve success

22. Action Oriented Improvement Cycles
Improvement cycles have four, clearly defined stages:
Planning, including design of processes, selection of measures, and deployment of requirements (approach)
Executing plans (deployment)
Assessing progress and capturing new knowledge, including seeking opportunities for innovation (learning)
Revising plans based on assessment findings, harmonizing processes and work unit operations, and selecting better measures (integration)

23. Leadership Category – 120 Points
Examines HOW your organization’s Senior Leaders’ personal actions guide and sustain your organization.
Vision, Values, and mission
Communication and Organizational Performance
Organizational governance
Legal and ethical Behavior
Societal Responsibilities and Support of key Communities

24. Strategic Planning – 85 Points
Examines HOW your organization develops Strategic Objectives and action plans.
Strategy Development Process
Strategic Objectives
Action Plan Development and Deployment
Performance Projection

25. Customer Focus – 85 Points
Examines how your organization engages its customers for long-term marketplace success.
Includes HOW your organization builds a CUSTOMER-focused culture
HOW your organization listens to the voice of its CUSTOMERS
Product Offerings and Customer Support
Determination of Customer Satisfaction and engagement
Analysis and use of Customer Data

26. Measurement, Analysis, and Knowledge Management – 90 Points
Examines HOW your organization selects, gathers, analyzes, manages, and improves its:
Data
Information
Knowledge Assets
Information Technology
Use of data to improve performance
Performance Measurement, Analysis, Review, and Performance Improvement

27. Workforce Focus – 85 Points
Examines HOW your organization engages, manages, and develops your WORKFORCE to utilize its full potential in alignment with your organization’s overall Mission, Strategy, and Action Plans.
Workforce Enrichment
Workforce and Leadership Development
Assessment of Workforce Engagement
Knowledge of Workforce Capability and Capacity
Overall Workforce Climate

28. Process Management – 85 Points
Examines HOW your organization designs its Work Systems and Processes
How it designs, manages, and improves its Processes for implementing Work Systems that
Deliver CUSTOMER value
Achieve organizational success and Sustainability
How you ensure Work System and workplace preparedness for disasters or emergencies

29. Results – 450 Points
Examines your organization’s PERFORMANCE and improvement in all KEY areas
Product outcomes
CUSTOMER-focused outcomes
Financial and Market Outcomes
WORKFORCE-focused outcomes
PROCESS Effectiveness outcomes
Leadership outcomes
Performance Levels are examined relative to those of competitors and other organizations with similar product offerings.

30. Results Product Outcomes: What are your product performance results?
Customer-Focused Outcomes: What are your customer-focused performance results?
Financial and Market Outcomes: What are your financial and marketplace performance results?
Workforce-Focused Outcomes: What are your workforce-focused performance results?
Process Effectiveness Outcomes: What are your process effectiveness results?
Leadership Outcomes: What are your leadership results?

31. Baldrige, ISO9000, & Six Sigma
Your needs drive the choice
It shouldn’t be “either/or.” It can be “one, two, and/or three”
To ensure the overall future development and success of an organization, you need a systems approach and Baldrige provides that
You need an overall organizational approach if you are looking for guidance in how to link the product approach with such organization functions as strategic planning, customer satisfaction, and staff and supplier satisfaction.

32. Baldrige Criteria for Performance Excellence
focus on performance excellence for the ntire organization in an overall management framework.
identify and track all-important organizational results: customer, product/service, financial, human resource, and organizational effectiveness.
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.
Six Sigma
concentrates on measuring product quality and improving process engineering.
drives process improvement and cost savings.

33. Sometimes its not a choice
The Baldrige Criteria lay the foundation for the entire organizational process by encouraging review of its approach.
ISO addresses systems that have direct influence in product quality and customer satisfaction, without suggesting tools for analysis, prioritization, or evaluation.
Six Sigma addresses a project oriented, data driven, statistical philosophy for continuous improvement

34. Richard Pieranunzi, President, STMicroelectronics, Inc
Richard Pieranunzi, President, STMicroelectronics, Inc.–Region Americas, Baldrige Winner :
“Regardless of which tools suit the organization’s needs, best-in-class companies continue to use them in their pursuit of performance excellence and their commitment to never be satisfied. In fact, all are mutually complementary and have their place in Total Quality Management…”

35. Dr Seuss
Sometimes the questions are complicated and the answers are simple.”
“The more that you read, the more things you will know. The more that you learn, the more places you'll go.”
 “I have heard there are troubles of more than one kind. Some come from ahead and some come from behind. But I've bought a big bat. I'm all ready you see. Now my troubles are going to have troubles with me!”

36. More Seuss
“Think left and think right and think low and think high. Oh, the things you can think up if only you try!”
“You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose. You're on your own. And you know what you know. You are the guy who'll decide where to go.”
Don't cry because it's over. Smile because it happened.”
“Today is your day! Your mountain is waiting. So... get on your way.”