Workshop Overview Introduction to Performance Improvement Introduction to the Baldrige Criteria for Performance Excellence Baldrige Gets Results! Ways to Get Started Workshop Overview
History of Baldrige Criteria In the mid-1980s, U.S. leaders realized that American companies needed to focus on quality in order to compete in an ever-expanding, demanding global market. Then-Secretary of Commerce Malcolm Baldrige was an advocate of quality management as a key to U.S. prosperity and sustainability. After he died in a rodeo accident in July 1987, Congress named the Award in recognition of his contributions. The goal of the Malcolm Baldrige National Quality Improvement Act of 1987 was to enhance the competitiveness of U. S. businesses. Its scope has since been expanded to health care and education organizations (in 1999) and to nonprofit/government organizations (in 2005). Congress created the Award Program to Identify and recognize role-model businesses Establish criteria for evaluating improvement efforts Disseminate and share best practices History of Baldrige Criteria
Excellence in Missouri Foundation The Excellence in Missouri Foundation was established in 1992 to help Missouri organizations improve performance and succeed in the competitive marketplace. EIMF is the administrator of the Missouri Quality Award process, designed to recognize exemplary organizations for their achievements in Performance Excellence. Excellence in Missouri Foundation
Not About Receiving an Award – It’s About Being “Award-Worthy Dr. Terry Holliday, former Superintendent of Iredell- Statesville Schools, a 2008 Baldrige Award recipient, said, “If you get into Baldrige because of the Award, it’ll be a short journey. But if you get into it for the right reasons, the feedback and continuous improvement, then it’s well worth the journey.” Ernest Davenport, former Chairman and CEO of Eastman Chemical Company, a 1993 Baldrige Award recipient, said, “We didn’t apply the [Baldrige] concepts…to win an award. We did it to win customers. We did it to grow. We did it to prosper.” Not About Receiving an Award - It’s About Being “Award-Worthy”
The Baldrige Burger Assessment/Criteria Framework
Leadership How senior leaders’ personal actions guide and sustain your organization Governance system Fulfilling legal, ethical and societal responsibilities Supports key communities Baldrige Categories
Strategic planning Developing strategic objectives and action plans Strategy deployment Changing strategic objectives and action plans if circumstances require How progress is measured Baldrige Categories
Customer focus Engaging customers for long-term success Building a customer-focused culture Listening to the voice of the customers…and using this information to improve and identify innovation opportunities Baldrige Categories
Measurement, analysis, and knowledge management Selecting, gathering, managing and improving data, information and knowledge assets Managing information technology Reviewing and using reviews to improve performance Baldrige Categories
Workforce focus Engaging, managing and developing workforce Ability to assess workforce capability and capacity Workforce environment delivering high performance Baldrige Categories
Operations Focus Designing work systems Designing, managing and improving key processes Readiness for emergencies Baldrige Categories
What Makes the Criteria for Performance Excellence Different From Other Management Approaches? The Criteria for Performance Excellence are a comprehensive management approach that focuses on results in all areas, organizational and personal learning, and knowledge sharing. What Makes the Criteria for Performance Excellence Different from other Management Approaches?
Why the Criteria for Performance Excellence? Provides a management approach to improve your organization’s performance validated by thousands of organizations nationwide Guides organizations to: Think and act strategically Align processes and resources Engage workforce and customers Focus on key results Why the Criteria for Performance Excellence?
Provides a fact-based analysis Uses a proven (25 year) tool Enables determining performance on a national yardstick Enables focus on improving that which will have the greatest positive impact on customers, stakeholders, and the organization Builds a customer focus and results oriented culture Why Conduct a Baldrige – Based Assessment?
Baldrige Gets Results! (Business) Honeywell Federal Manufacturing & Technologies Overall customer satisfaction reached or exceeded 95%. Customer product quality and reliability reached 99.9% for traditional customers and 99% for nontraditional customers. 72% of the workforce indicated a “positive environment,” compared to 56% for commercial best-in-class manufacturers. Cargill Corn Milling (CCM) CCM saved more than $15 million from 2006 to 2008 by using ideas generated by employees. The error-free delivery rate was 99% or above from 2005 to Per-bushel costs held steady from FY2006 to FY2008 even though energy costs increased 50-80%, chemical costs rose 30%, and maintenance costs increased 10%.
Baldrige Gets Results! (Non-Profit) City of Coral Springs The crime rate decreased by nearly half over 10 years. The percentage of residents who are satisfied with city services has been 95% or higher since Business satisfaction rose from 76% in 2004 to 97% in VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center Budget for new studies grew 143% from 2002 to 2008, compared to 58% for Veterans Affairs. In 2008, productivity (as measured by revenue/employees) of $221,000 compared favorably to that of eight top competitors, with the highest competitor at $195,000. Overall, customer satisfaction increased: the percentage of customers rating the program “good-excellent” increased from 83% in 2003 to 100% in Customer complaints were consistently fewer than 3.4 per million units shipped from 2001 to 2009.
Let the record show… Performance Measures Percentage Change HENDRICKS AND SINGHAL STUDY
Let the record show… B ENEFITS OF B ALDRIGE
The Baldrige Model Tailored to Help Your Organization Grow That’s why thousands of organizations of all sizes in every industry use the Baldrige Criteria—and a select group applies for the Missouri Quality Award and the Malcolm Baldrige National Quality Award, including many Missouri companies representing the best of the best in management practices: Large, Fortune 500 companies, including Boeing Aerospace Support ( 2002 recipient of the Missouri Quality Award, and 2003 Malcolm Baldrige National Quality Award recipient). Small businesses, such as Midway USA (2008 recipient of the Missouri Quality Award and 2009 Malcolm Baldrige National Quality Award recipient), and Missouri Corporate Credit Union (2006 Missouri Quality Award Recipient).
The Baldrige Model Tailored to Help Your Organization Grow Large hospitals and hospital systems, like SSM Health Care (2-time Missouri Quality Award recipient and 2002 Malcolm Baldrige National Quality Award recipient), Heartland Health (2-time Missouri Quality Award recipient and 2009 Malcolm Baldrige National Quality Award recipient) as well as single hospitals like Lake Regional Hospital (2003 Missouri Quality Award recipient). Large and small schools and colleges, such as Northwest Missouri State University (4-time Missouri Quality Award recipient) and Park Hill School District (2009 Missouri Quality Award Recipient).
Why Are These Organizations Outperforming? They view their organizations as a integrated holistic “system” They recognize that high-performance comes from all the parts of the “system” working effectively together They use the Criteria for Performance Excellence as a framework to assess and improve their “system” The Baldrige Model Tailored to Help Your Organization Grow
The Baldrige Model What it is NOT NOT a fad…effective performance model for 25 years NOT (intended to be) additive NOT easy NOT a quick fix NOT a program NOT an award
Do your leaders set clear a direction that is aligned with the vision, mission and values and is cascaded throughout the organization with measurable goals? Does your organization factually understand customers — their needs, expectations and preferences? Do people in your organization have the information they need to make good decisions? Where Is Your Organization on the Performance Excellence Continuum? Ad Hoc Management Approach High Performance Management System
How does EiMF help your organization with Baldrige? The Excellence in Missouri Foundation offers organizations: An integrated management framework that gets results Assessment tools to evaluate improvement efforts Training for examiners so that they can learn best practices from other organizations and bring those back to your organization Feedback reports from a team of trained experts, highlighting organizational strengths and opportunities for improvement
How does EiMF help your organization with Baldrige? The Excellence in Missouri Foundation offers organizations: Presentations and workshops on how to improve using the Baldrige Criteria Customized assistance tailored to your organization’s needs Conferences and other learning events that showcase best management practices The Missouri Quality Award for organizations recognized as national role models
Examiner Hierarchy New Examiner Returning Examiner – Typically serves 3 years before becoming a senior examiner Senior Examiner – Skilled at comment writing, and diligent about performing volunteer duties; shows promise as becoming a team leader Team Back-up – Ready to take on additional responsibility of helping organize and assist with new examiners Team Leader – Shows leadership and responsibility, strong ability to organize team activities, answer questions, and direct team members according to the criteria Overseer – Expert on criteria, expected to oversee the team and make sure they are following proper procedures throughout the process Judge – Neutral parties that read feedback reports from the teams, and make determinations on the recipients of the Missouri Quality Award
Assessment Purpose Identifies strengths on which to continue building Identifies next steps to enable achieving the next level of performance Identifies the most important next steps to take Develops widespread understanding of the Baldrige Performance Excellence/Management Model
Why Do the Show Me Challenge Assessment? Educate Leadership Team - Baldrige is a top down approach. Educate organization - Organization needs to have a basic understanding of the Baldrige model. Conduct baseline organizational assessment against the Baldrige criteria
Show Me Challenge Timeline is 3-6 months for most organizations Team of 6 OR 12 members of your mid-level employees trained in Baldrige concepts Comprehensive Feedback Report based on the Baldrige Criteria, written by EiMF staff that addresses Strengths and OFIs in each category Key Themes for the identification of next steps
Show Me” Internal Assessment Process Team Training (1 day) Leadership Interviews Final Report EIMF develops Feedback Report based on Findings Consensus (1-2 days) Walk Around Training (2.5 hours) Walk Around Interviews
After the Assessment… “Now What?” Prioritize opportunities for improvement Develop action plans Execute the plans Measure progress Show Me More Assessment MQA Application
Thoughts to Consider Applicants who have completed a Show Me Challenge Assessment score, on average, 100 points higher on their state level application than those organizations who did not complete an internal assessment. Of the seven Missouri Organizations who have received Baldrige, every one competed and won at the state level prior to applying to and winning Baldrige.
Thoughts to Consider All of the Missouri Baldrige winners build their expertise of the criteria and the examination process by serving as an examiner at the state level. The completion of an internal assessment aids in the completion of an application for the State or National level programs. The feedback report can be leveraged to respond to the criteria questions.
Customized Consulting With expertise in all aspects of the Baldrige Performance Excellence and Business Management Model, EiMF can customize consulting services to your needs. Examples include: Focus Groups Balanced Scorecard Strategic Planning Core Competencies Communications Planning
B ECOME A M EMBER O RGANIZATION
Benefits of Membership Entrance into local BPEG group for networking & educational experiences (cohort learning) Discounts on workshops, conference & Quest events Listing on EiMF promotional materials such as conference programs, website, etc. FREE new examiner training for up to 6 employees ($350 value/each)