Presentation on theme: "So You Want to Use the Baldrige Criteria?"— Presentation transcript:
1 So You Want to Use the Baldrige Criteria? Prepared for TNCPE Customers by Dan Jordan2009/2010 Criteria
2 Using the Baldrige Criteria Organizational Profile (Level 1 Application)Core ValuesCategories (Level 2 Application)Items and Areas to Address (Level 3 and Level 4 Applications)
3 Organizational Profile PurposeProvides an overview of your organizationHelps to better understandThe context in which your organization operatesKey requirements for current and future business success and sustainabilityThe needs, opportunities and constraints placed on your organization’s performance management system
5 Organizational Profile P.1 Organizational DescriptionP.1a Organizational EnvironmentWhat do you do?Product offerings – goods and services offeredWho are you? Why do you exist?Culture – shared set of attitudes, valuesCore competencies – areas of greatest expertiseWorkforceDistinguishing traitsRequirementsFacilities and equipmentRegulatory environment – health, safety, accreditation, certification, and/or registration
6 Organizational Profile P.1 Organizational DescriptionP.1b Organizational RelationshipsStockholders (Governance)Customers / stakeholdersGrouping or differentiationRequirementsSupply chainSuppliers, partners, collaboratorsMeans of communicationRole in innovationSupply chain requirements
7 Organizational Profile P.2 Organizational ChallengesP.2a Competitive EnvironmentHow do you know how you stack up? (Competitors)What factors differentiate you from your competitors?Where do you get comparative and competitive data?
8 Organizational Profile P.2 Organizational ChallengesP.2b Strategic ContextStrategic challengesStrategic advantagesP.2c Performance Improvement SystemLinked to Organizational LearningHow do you systematically improve? (Should be data based)Linked to assessment of maturity (Look at Scoring Guidelines)
9 Strategic AdvantagesMarketplace benefits exerting a decisive influence on an organization’s likelihood of successSources of current and future competitive successCan come from:Core competenciesStrategically important external resources
10 Force Field Examples Strategic Advantages Objectives Strategic ChallengesBenefitsPressuresHelp you achieve your objectivesHinder your efforts to achieve your objectivesBenefitsPressuresBenefits
11 GovernanceSystem of management and controls exercised in the stewardship of your organizationEnsures:accountability to stakeholders,transparency of operations,fair treatment of all stakeholdersIncludes the performance evaluation of senior leaders and members of the governance board
12 Core Values Visionary Leadership Customer-Driven Excellence Organizational & Personal LearningValuing Workforce Members and PartnersAgilityFocus on the FutureManaging for InnovationManagement by FactSocietal ResponsibilityFocus on Results and Creating ValueSystems Perspective
13 Visionary Leadership Set directions Create customer value Create clear and visible valuesCreate high expectationsPersonal involvement with workforceInspire, Motivate, EncourageTo contribute, develop and learn, be innovativeServe as role models
14 Customer-Driven Excellence Know what contributes value to customersProduct & service features and characteristicsModes of customer accessLook at current and future componentsHow? Market surveys, focus groups, periodicals, customers of customersUnderstand factors that may influence customer overall experience (face of the organization)Recovering from defectsFeatures and characteristics that differentiate from competitorsDirected toward customer retention, loyalty, market share gain, and growth
15 ValuePerceived worth of a product, service, process, asset, or function relative to cost and to possible alternativesRelative worth, utility, or importance
16 Organizational & Personal Learning Well-executed approach – includes sharing knowledge via systematic processesIncludes continuous improvement and significant changeEmbeddedRegular part of daily workPracticed at all levelsResults in solving root causeBuild and share knowledgeDriven by opportunities to effect significant meaningful change
17 Organizational & Personal Learning Depends on having opportunities for personal learning and developing and practicing new skillsDirected towardBetter products and servicesBeing a more responsive organizationBeing more adaptiveBeing more innovativeBeing more efficient
18 Valuing Workforce Members & Partners Valuing people meansCommitting to engagementSatisfactionDevelopmentWell-beingPartners (Internal and External)Established to better accomplish overall goalsBlending of core competencies or leadership capabilitiesDevelop longer term objectivesAddress key requirements for successRegular communicationApproach to evaluate progressMeans for adapting to change
19 EngagementCommitment, both emotional and intellectual, to accomplishing the work, mission, and vision of the organizationEngaged workforce find personal meaning and motivation in their work and receive positive interpersonal and workplace support
20 Agility Capacity for rapid change and flexibility Cycles for introduction of new / improved products and servicesVital asset: cross-trained and empowered workforce
21 EmpoweredGiving people the knowledge, authority and responsibility to make decisions and take actions to create desired resultsAccountabilityKnowledgeResponsibilityResults
22 Focus on the FutureUnderstanding of short- and longer-term factors that affect organization and marketplaceRequires strong future orientationRequires willingness to make long-term commitments to key stakeholders
23 Focus on the FutureIncluded in planning – anticipate customer expectations, new business opportunities, workforce needs, technological development, new business modelsStrategic objectives and resource allocations needed to allow for future influences
24 Focus on the Future Includes Developing leaders, workforce, and suppliersAccomplishing effective succession planningCreating opportunities for innovationAnticipating public responsibilities and concerns
25 Managing for Innovation Meaningful change to improveProducts,Services,Programs,Processes,Operations, andBusiness model to create new value for stakeholdersPart of learning cultureIntegrated into daily workSupported by performance improvement systemBuilds on accumulated knowledge of organization and its people
26 InnovationMaking meaningful change to improve products, programs, services, processes or organizational effectiveness and to create new value for stakeholdersInvolves the adoption of an idea, process, technology, or product that is either new or new to its proposed application
27 Management by Fact (1) Measurements Derived from business need and strategyProvide critical data and information about key processes, outputs and resultsNeeded for performance managementData should be segmented to facilitate analysis
28 Management by Fact (2) Analysis Extract larger meaning from data and informationUses data to determine trends, projections, and cause and effectSupportsPlanningReview of overall performanceImproving operationsAccomplishing change managementComparing performance with competitors’ or “best practice” benchmarks
29 Management by Fact (3) Measures Best represent factors that lead to improved customer, operational, financial, and critical performanceComprehensive set tied to customer and organizational performance requirementsProvides clear basis for aligning all processes with goals
30 Performance Management Involves consolidation of data from various sources; asking questions about, and analysis of the data; and putting the results into practiceContinuous and real-time reviews help to identify and eliminate problems before they grow.Definition of BPM from Wikipedia
31 Societal Responsibility (1) StressesResponsibilities to publicEthical behaviorThe need to practice good citizenshipLeaders are role modelsProtection of health, safety and environment. Includes:OperationsLife cycle of products and services
32 Societal Responsibility (2) Stresses conservation of resourcesPlanning should anticipate adverse impacts from products, distribution, transportation, use and disposalLocal, state, and federal laws and regulations treated as opportunities for improvement beyond mere compliance
33 Societal Responsibility (3) Good citizenshipLeadership and support of publicly important purposesExamples:Improve education and healthcare in communityPursue environmental excellencePractice resource conservationPerform community serviceImprove business and industry practicesShare nonproprietary informationInfluences other organizations to partner for these purposes
34 Ethical BehaviorHow an organization ensures that all decisions, actions, and stakeholder interactions conform to moral and professional principlesPrinciples distinguish right from wrong
35 Focus on Results and Creating Value Results used to create and balance value for key stakeholdersBuilds loyaltyContributes to growing the economyStrategy explicitly should include key stakeholder requirementsUse a balanced composite of leading and lagging performance measures
36 What is Valued and Measured 3UndesiredDesiredFor CustomerPriotes21Product/Service AttributesProduct performanceCustomer specsProductCustomer Undesired OutcomesComplaintsLost ordersCustomer Desired OutcomesValue add (Loyalty, Referrals)Cust Satisfaction4Process Characteristics Customer PerspectiveDelivery reliabilityAccessibilityProcessOutcomeProducer Undesired Outcomes to AvoidWasteLoss of customersFinancial lossHigh turnoverProducer Desired OutcomesEFOMarket shareSalesProduct Attributes Producer PerspectiveCost to produceMeets Technical specificationsEase of distribution8Process Characteristics Producers PerspectiveVariabilityProductivity% First PassNPV New productsFor Producer765HowWhatWhyBalance Your Balanced ScorecardRobin Lawton, Quality Progress, March, pp
37 Systems Perspective (1) Successful management of overall performance requires synthesis, alignment, and integration
38 Systems Perspective (2) SynthesisLooking at the organization as a whole, building on key business requirements including core competencies, strategic objectives, actions plans, and work systems
39 Systems Perspective (3) AlignmentKey linkages between key processesLeadershipPlanningCustomer FocusInformation ManagementWorkforce FocusProcess ManagementResults
40 Systems Perspective (4) IntegrationIndividual components of performance management system operate in a fully interconnected manner and deliver anticipated results
41 Categories 1 - Leadership 2 - Strategic Planning 3 - Customer Focus 4 - Information and Knowledge Management5 - Human Resource Focus6 - Process Management7 - Results
42 Items (1) 1.1 Senior Leadership 1.2 Governance and Societal Responsibility2.1 Strategy Development2.2 Strategy Deployment3.1 Customer Engagement3.2 Voice of the Customer4.1 Measurement, Analysis, and Improvement of Organizational Performance4.2 Management of Information, Knowledge and Information Technology
43 Items (2) 5.1 Workforce Engagement 5.2 Workforce Environment 6.1 Work Systems6.2 Work Processes7.1 Product and Service Outcomes7.2 Customer-Focused Outcomes7.3 Financial and Market Outcomes7.4 Workforce-Focused Outcomes7.5 Process Effectiveness Outcomes7.6 Leadership Outcomes
44 1 - LeadershipSenior leaders personal action guide and sustain the organizationOrganization’s governanceOrganization addresses ethical, legal, and societal responsibilities
45 1.1 – Senior Leadership For the organization GuideSustainCommunication with workforceWhat are you communicating?How are you communicating?Encourage high performance
46 High-performance Work - 1 Work processes used toSystematically pursue ever-higher levels of overall performance (organizational and personal)Includes quality, productivity, innovation rate, cycle time performanceFocuses on workforce engagement
47 High-performance Work - 2 May include empowerment of people (self-directed responsibility)Individual and organizational skill building and learningLearning from other organizationsFlexibility in job design and work assignmentsSeeks to align or integrate organization structure, core competencies, work, jobs, workforce development and performance management.
48 1.2 - Governance and Societal Responsibility Governance SystemResponsibilities to publicEnsure ethical behaviorPractice good citizenship
49 Guide What does guide mean? Direct, or influence usually to a particular endWhat do you have to have in order to guide?Vision, Road mapShare itMake it real.
50 Sustain Ability to address business needs Agility and strategic management to prepare for the futureConsiders:Workforce capability (knowledge, skills, abilities and competencies)Workforce capacity (Ability to ensure sufficient staffing levels)Core competencies (areas of greatest expertise)Work systems (how work of the organization is accomplished)Resource availability – FacilitiesTechnology – EquipmentKnowledge
51 Governance Stewardship of the organization Ensures: Accountability to owners/shareholdersTransparency of operationsFair treatment of all stakeholders
52 Responsibilities to the Public Stress conservation of resourcesPlanning should anticipate adverse impacts from products, distribution, transportation, use and disposalLocal, state, and federal laws and regulations treated as opportunities for improvement beyond mere compliance
53 Good Citizenship Leadership and support of publicly important purposes Examples:Improve education and healthcare in communityPursue environmental excellencePractice resource conservationPerform community serviceImprove business and industry practicesShare nonproprietary informationInfluences other organizations to partner for these purposes
54 Legal ResponsibilityCompliance to all local, state, and federal laws and regulatory requirementsTreat requirements as opportunities for improvement beyond compliance
55 Societal Responsibility Planning should anticipate adverse impacts from products, distribution, transportation, use and disposalLeadership and support of publicly important purposes, e.g.:Improve education and healthcare in communityPursue environmental excellencePractice resource conservationPerform community serviceImprove business and industry practicesShare nonproprietary informationInfluences other organizations to partner for these purposes.
56 2 – Strategic PlanningThree key aspects of organizational excellence important to strategic planningCustomer-driven quality is a strategic view of qualityOperational performance improvements and innovation – short- and longer-term productivityOrganizational and personal learning – alignment of work processes and learning initiatives
57 2 – Strategic PlanningA well crafted strategic plan provides a roadmap for success and the framework for clear communication of what is important
58 2 – Strategic PlanningHow the organization develops strategic objectives and action plans (Does not imply the need for formal planning systems or specific planning cycles)How strategic objectives and action plans are deployedHow strategic objectives and action plans are changedHow progress is measured.
59 2.1 – Strategy Development Process for developing strategic planDetermine core competencies, strategic challenges and strategic advantagesEstablish strategy and strategic objectivesSummary of key strategic objectives and related goals
60 Core Competencies Areas of greatest expertise Strategically important capabilities that provide an advantage in market-place or service environmentFrequently challenging for competitors or suppliers to imitate
61 Strategic ChallengesPressures that are an unmistakable influence on an organization’s likelihood of future successExternalCustomer or market needs or expectationsProduct, service, or technological changesFinancial, societal, and other risks or needsInternalOrganizational capabilitiesHuman and other resources
62 Strategic AdvantagesMarketplace benefits exerting an unmistakable influence on an organization’s likelihood of successSources of current and future competitive successCan come from:Core competenciesStrategically important external resources
63 Force Field Examples Strategic Advantages Objectives Strategic ChallengesBenefitsPressuresHelp you achieve your objectivesHinder your efforts to achieve your objectivesBenefitsPressuresBenefits
64 Goals Performance level Short- and longer-term Ends that guide actions Quantitative are called targetsStretch goals refer to major or breakthrough improvements
65 Strategic ObjectivesResponses to address major change or improvement, competitiveness and business advantagesFocused onExternal and internal issues,Significant customer, market, product, service, or technological opportunities and challengesBroadly – what an organization must achieve to remain or become competitive and ensure long-term sustainability.
66 2.2 – Strategy DeploymentConvert strategic objectives into action plansSummarize action plans and key related performance measures or indicatorsProject organization’s future performance relative to comparisons
67 Action PlanInclude details of resource commitments and time horizons for accomplishmentUsed in deploying strategic objectives and creating organization-wide understandingIncludes creating aligned measures for all departments and units
68 Summarize Action Plans and Key Performance Measures What do you have to have in place to respond to this?Project Management PlanSteps to achieve (activities)Means of measuring progressOn activitiesOn resultsGoals
69 Projections and Comparisons Intended to improve organization’s ability toUnderstand and track changing, competitive performance factorsEnable organization to compare rate of improvement and change relative to competitorsKey diagnostic management tool
70 ConsiderationsWhat must you consider when defining key performance measures for action plans in order to make key comparisons?They are related to goalsThey are related to measures of importance to customers and other key stakeholders
71 3 – Customer Focus How organization engages customers How you build a customer-focused cultureHow you listen to the voice of the customerHow you use information to improve and identify opportunities for innovation
72 Voice of the CustomerProcess for capturing customer-related informationRequirementsExpectationsDesiresIncludes gathering and integrating customer data (affecting purchasing decisions)SurveysFocus groupsWarranty dataComplaints
73 InnovationMaking meaningful change to improve products, programs, services, processes or organizational effectiveness and to create new value for stakeholdersInvolves the adoption of an idea, process, technology, or product that is either new or new to its proposed application
74 3.1 – Customer EngagementIdentify and design products to meet customer and marketRequirementsExpectationsDefine processes to support use of your products and provide access the organizationCreate a customer-focused culture
75 Customer EngagementCustomers’ commitment to your brand and product offeringsBased on your ability to serve customers’ needs and build relationshipsIncludes customers’LoyaltyRetentionWillingness to do businessWillingness to refer others to you
76 Define process requirements 3.2 – Voice of the CustomerDefine process requirementsGet information you can use (Listen)Help manage key product, service and business processesHelp determine cost and revenue implications for setting improvement goals and priorities for changeObtain customer satisfaction and dissatisfaction dataDetermine for customers and marketsRequirementsExpectationsWhat’s it worth?
77 Customer Satisfaction and Dissatisfaction RequirementsNeedsExpectationsPreferencesDissatisfactionComplaintsWin/loss analysis
78 4 – Measurement, Analysis, and Knowledge Management Numerical information that quantifies outcomesAnalysisExamination of facts and data to provide a basis for effective decisionsKnowledgeAccumulated intellectual resources of the organization (what you know and what you have learned)
79 4 – Measurement, Analysis, and Knowledge Management Data, information and knowledge assetsSelectGatherAnalyzeManageImproveReview performanceUse the review to improve performanceManage information technology.
80 4.1 – Measurement, Analysis, and Improvement of Organizational Performance Measure performanceAre you measuring the right things?Aligned with mission, strategy, values, and behaviorAre you measuring the right things right?Demonstrate improvementSo what?Numerically define the meaning of success
81 4.1 – Measurement, Analysis, and Improvement of Organizational Performance Examine facts and data to provide a basis for effective decisionsInvolves gaining a deeper understanding of data and informationUsed to supportEvaluationDecision makingImprovementInnovation
82 Types of Analyses (Examples) Correlate product and service improvements with key customer indicators (satisfaction, retention, market share)Financial benefits derived from improvements in workforce safety, absenteeism and turnoverRelationships among product and service performance indicators and financial indicators such as operating costs, revenues, asset utilization, and value added per employee.
83 4.1 – Measurement, Analysis, and Improvement of Organizational Performance Regular review of organizational performance against an objective or objectivesInternalComparative data“Best practices” and performance from benchmarkingTranslate review findings into priorities for continuous and breakthrough improvementUsing a systematic, fact-based evaluation and improvement process (Plan, Do, Check, Act or similar)Involves sharing opportunities withWorkforceSuppliersCollaboratorsPartners.
84 4.2 – Management of Information, Knowledge, and Information Technology Right information or is it just data?Quality of informationAccurateIntegrityTimelySecurity and ConfidentialityAvailability/accessible to the right resourcesWorkforceSuppliersPartnersCollaboratorsCustomers
85 4.2 – Management of Information, Knowledge, and Information Technology Organizational knowledge – that is needed toDo the workImprove processes, products, servicesKeep current with changing business needs and directionsDevelop innovative solutionsCollection of what you know and what you have learned as an organization
86 4.2 – Management of Information, Knowledge, and Information Technology Collection and transfer of knowledge betweenWorkforceCustomersSuppliersPartnersCollaboratorsIdentification and sharing of best practicesInformation for strategic planning.
87 4.2 – Management of Information, Knowledge, and Information Technology SoftwareValue addEase of useIntegrationInfrastructureHardwareReliabilitySecurityConnectivityAvailability
88 5 – Workforce Focus Addresses key workforce practices Objective is to utilize workforce potential aligned with:Overall missionStrategyAction plansHow do youEngage the workforceManage the workforce (work/job design)Develop the workforce (training, education, experience)
89 5 – Workforce Focus How do you assess Workforce capabilityWorkforce capacityHow do you build workforce environment conducive to high performance.
90 High-performance Work - 1 Work processes used toSystematically pursue ever-higher levels of overall performance (organizational and personal)Includes quality, productivity, innovation rate, cycle time performanceFocuses on workforce engagement
91 High-performance Work - 2 May include empowerment of people (self-directed responsibility)Individual and organizational skill building and learningLearning from other organizationsFlexibility in job design and work assignmentsSeeks to align or integrate organization structure, core competencies, work, jobs, workforce development and performance management.
92 5.1–Workforce Engagement (1) How do you achieve high performance byEngaging your workforceCompensating your workforceRewarding your workforceHow do you develop your workforce, including leaders, to achieve high performance
93 5.1 - Workforce Engagement (2) How do you assess to what extent the workforce is committed to the organization (engaged)How do you use the results of the assessment to achieve higher performanceRelationship of assessment findings to key business results
94 5.2 – Workforce Environment Management of workforce capabilityManagement of workforce capacityHow organization maintains a safe, secure and supportive work climate.
95 Workforce EngagementCommitment of the workforce (emotional and intellectual) to accomplishing the work, mission and visionEngaged workersFind personal meaning and motivation in the workReceive positive interpersonal and workplace supportKey FactorsTraining and career developmentEffective recognition and reward systemsFamily friendliness.
96 Workforce Capability Ability to accomplish work processes through KnowledgeSkillsAbilitiesCompetenciesCapability may include ability toBuild and sustain relationships with customersInnovate and transition to new technologiesDevelop new products, services and work processesMeet changing business, market and regulatory demands.
97 Workforce CapacityAbility to ensure sufficient staffing levels to execute work processes and successfully deliver products and servicesIncludes ability to meet seasonal and varying demand levels
98 High-performance Work - 1 Work processes used toSystematically pursue ever-higher levels of overall performance (organizational and personal)Includes quality, productivity, innovation rate, cycle time performanceFocuses on workforce engagement
99 High-performance Work - 2 May include empowerment of people (self-directed responsibility)Individual and organizational skill building and learningLearning from other organizationsFlexibility in job design and work assignmentsSeeks to align or integrate organization structure, core competencies, work, jobs, workforce development and performance management.
100 EmpoweredGiving people the knowledge, authority and responsibility to make decisions and take actions to create desired resultsAccountabilityKnowledgeResponsibilityResults
101 6 – Process Management Work systems design and implementation Key process design, management and improvementReadiness for emergencies.For work systems to deliver customer value and achieve organizational success and sustainability
102 6.1 – Work Systems How you design work systems How you determine key processesFor what end?Deliver customer valuePrepare for potential emergenciesAchieve organizational successAchieve organizational sustainability.
103 Includes support processes 6.2 – Work ProcessesIncludes support processesFor work processes, how youDesign key work processesImplement or put into place key work processes to meet design requirementsManage or operate day-to-day to ensure requirements are metIncorporation of input from customers, suppliers, partners, and collaboratorsKey measures usedImprove key work processesBetter performanceReduced variabilityShare learnings
104 Work Systems How the work of organization is accomplished Involves (Supply Chain)WorkforceKey suppliers and partnersContractorsCollaboratorsBlend the internal work processes of the organization with those resources outside the organization to develop, produce, and deliver products
105 7 – Results (1) Results indicators can be leading and/or lagging Lagging indicators focus on the past. (Financial measures are most familiar)Leading indicators can predict the outcome of lagging indicatorsExample: Process performance measures (Temperature, throughput, cycle time) can predict the product outcome (specification, characteristics, etc.)Knowing which indicators are leading and which are lagging can help an organization analyze cause and effect relationshipsExample: Relating your workforce engagement findings to key business results (cause and effect)
106 7 – Results (2) Performance and improvement in all key areas Product and service outcomesCustomer-focused outcomesFinancial and market outcomesWorkforce-focused outcomesProcess-effectiveness outcomesLeadership outcomesExamined relative to competitors and/or other organizations providing similar products or services
107 7.1 – Product and Service Outcomes Key product, program and service featuresInformation gathered from customers using processes defined in Item 3.1 and 3.2Measures address factors that affect customer preference usually noted in Organizational Profile (P.1)Segmentation byProduct and service types and groupsCustomer groupsMarket segmentsAppropriate comparative data.
108 7.2 – Customer-Focused Outcomes (1) Customer Satisfaction and DissatisfactionInformation gathered from customers using processes defined in Item 3.2Data could include:Retention, gains, and customer lossesComplaints and complaint managementWarranty claimsCustomer-perceived value based on quality and priceCustomer assessment of access and ease of useAwards and ratingsRecognition from customers
109 7.2 – Customer-Focused Outcomes (2) Segmentation byProduct and service types and groupsCustomer groupsMarket segmentsAppropriate comparative data
110 7.3 – Financial and Market Outcomes (1) Aim is to understand your financial sustainability and marketplace challenges and opportunitiesMeasures are those usually tracked by senior leaders and reported in 4.1 and financial management approaches described in 2.2
111 7.3 – Financial and Market Outcomes (2) Aggregate measures on financial return might include:Return on investmentOperating marginsProfitabilityMeasures of financial viability might include:LiquidityDebt-to-equity ratioDays cash on handAsset utilizationCash flowSegmentation by customer or market segmentsAppropriate comparative data.
112 7.4 – Workforce-Focused Outcomes (1) Aim is to demonstrate how well you have been creating and maintaining a productive, engaging, and caring work environmentResults address:Processes described in Category 5Key work process needs described in Category 6Human resource plans described in Item 2.2
113 7.4 – Workforce-Focused Outcomes (2) Measures for workforce engagement and satisfaction might include:Improvement in local decision makingOrganizational culture (e.g. extent and success of self-direction)Workforce and leader development (effectiveness, not just extent)Outcome measures might be:Increased workforce retention resulting from establishing a peer recognition program, orThe number of promotions resulting from leadership development programBoth reflect cause and effect
115 7.4 – Workforce-Focused Outcomes (4) Organization-specific factorsExtent of training, re-training, or cross-training to meet capability and capacity needsExtent of self-directionExtent of volunteer involvement in process activities
116 7.5 – Process Effectiveness Outcomes (1) Aim is to achieve work system and work process effectiveness and efficiencyResults address key operational requirements presented in Item 6.1 and 6.2Measures track key processes and operational improvementResults should provide:Key information for analysis and review of organizational performance (Item 4.1)Explanation for product and service outcomes (Item 7.1), customer-focused outcomes (Item 7.2), and financial and market outcomes (Item 7.3) (cause and effect – process outcomes should influence outcomes in 7.1, 7.2, and 7.3)
117 7.5 – Process Effectiveness Outcomes (2) Measures for work system performance might include:Just-in-time deliveryAcceptance results for externally provided products, services, processesSupplier and partner performanceProduct, service, and work system innovation rates and resultsResponse times for emergency drills or exercisesResults for contingency exercises
118 7.5 – Process Effectiveness Outcomes (3) Measures for process effectiveness and efficiency might include:Performance that demonstrates improved cost savings or higher productivity (Could be linked to Six Sigma initiative results)Internal responsiveness indicators (cycle times, production flexibility, lead times, set-up times, time to market)Improvements in support processesReduced emission levels,Waste stream reductionsRecycling
119 7.6 – Leadership Outcomes (1) Aim is to maintain a fiscally sound, ethical organization that is a good citizen in its communityResults related to accomplishment of strategy and action plans linked to:Strategic objectives and goals - Item 2.1b(1)Key action plan performance measures – Item 2.2a(6)Performance projections or key action plan performance measures – Item 2.2b
120 7.6 – Leadership Outcomes (2) Measures for ethical behavior (Item 1.2 Note 4) might include:Percentage of independent board membersInstances of ethical conduct breaches and responsesSurvey results on workforce perceptions of organization ethicsEthics hotline useResults of ethics reviews and audits
121 7.6 – Leadership Outcomes (3) Measures of fiscal accountability might include:Financial statement issues and risksInternal and external auditor recommendations and responsesMeasures of regulatory and legal compliance related to Item 1.2b (1)Measures of organizational citizenship should support key communities discussed in Item 1.2c and might include:Efforts to strengthen local community servicesPerforming community serviceImproving industry and business practices