1. Malcolm Baldrige Award for Nonprofit
Limher Montoya

2. What Will be Covered What is the Baldrige Award? Baldrige History
Baldrige for Nonprofit
How Can it be Used in Your Organization
How It Works
City of Coral Springs Example (Nonprofit Award Recipient)
Exercise
Summary
Readings List and Sources

3. What is the Malcolm Baldrige National Quality Award?
Who is Malcolm Baldrige
It is an award to recognize organizations for performance excellence
Administered by the Baldrige Performance Excellence Program
Organizations are judged by excellence in 7 areas
Malcolm Baldrige was a Secretary of Commerce from 1981 to He was an advocator for quality management and was helped draft the Quality Improvement Act of Congress named the award in his honor of his contributions for quality improvement.
The Malcolm Baldrige National Quality Award was established in order to recognize organizations that have demonstrated quality and performance excellence. This award is given by the President of the U.S. annually and may be awarded in each of the following six categories: manufacturing, service companies, small businesses, education, healthcare, nonprofit.
The Baldrige Performance Excellence Program is the organization that administers the judging/awarding process. In their mission statement they state that they strive to “improve the competiveness and performance of U.S. organizations” and they do this by:
Identifying and recognizing role-model businesses
Establishing criteria for evaluating improvement efforts
Disseminating and sharing best practices

4. What is the award? (cont.) Seven areas
The recipients of the award judged and selected by improvement and excellence in the following seven areas (these are also known as the Baldrige Criteria for Performance Excellence):
Leadership – How upper management leads the organization and how the organization plays it’s role within the community
Strategic Planning – How the org. establishes it’s strategic directions and then how it implements the plans made
Customer Focus – How the org. determines customer expectations and requirements
Measurement, analysis, and knowledge management – How effective the org. is in measuring, analyzing, and using data and information to support key processes
Workforce focus – How the org. empowers and involves its workforce
Operations focus – How key processes are designed, managed and improved
Results – How org. performs in key business areas: customer satisfaction, finances, HR, supplier and partner performance, operational performance, governance, and social responsibilities. Also compares the org. to competitors.

5. Award History
1980’s US leaders recognize need to improve quality among American organizations
1987 the Quality Improvement Act is issued by U.S. Congress and Baldrige Award is established
1999 Education and Healthcare categories added
2007 Government and Nonprofit categories added
It was during the 1980’s that leaders in the US recognized that American organizations needed to improve quality within their organizations as countries like Japan started to outperform the US in this area. At the time many organizations did not believe that quality was important for them, or did not know how to begin implement quality processes. As the world market continued to open up , US companies had to learn to become more competitive through quality.
The US Congressed enacted the Quality Improvement Act in 1987 and through the contributions of Malcolm Baldrige the Act was drafted and the Award was established. Because of his tragic death during that same year, Congress decided to name the award after him because of his contributions to the act. As this award was enacted it was aimed to help set a standard of quality that would help raise awareness of quality practices and recognize American Organizations who had been “role-models”.
Originally as the Award was established, there were three categories; manufacturers, service businesses, and small businesses. Since it’s inception, four categories have been added; education (1999), healthcare (199), government (2007), and nonprofit (2007).

6. Baldrige for Nonprofit
History
Nonprofit organizations were eligible for Baldrige-based State awards programs
In 2007 Category was added
Since the addition of the category, 4 Not-for-profit organizations have been recipients of the award.
As it has been recognized that the Baldrige award can help catalyze improvement efforts in the sectors awarded, new sectors(categories) were added to the award eligibility. Before the addition of the Nonprofit category in the National Baldrige Award, nonprofit organizations could only qualify for state based awards. The addition of the nonprofit category in 2007 has allowed these types of organizations to become eligible for the award. Specifically public agencies of federal, state and local government, and independent, private nonprofit organizations.
While the addition of this category is young, there have already been 4 organizations that have received the Baldrige Award. They are as follows:
U.S. Army Armament Research, Development and Engineering Center (ARDEC) in 2007
City of Coral Springs also in 2007
VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center in 2009
Concordia Publishing Homes in 2011

7. How Can it be Used in Your Organization?
Brainstorming Activity:
Write down all issues that Nonprofit Organizations face
In groups present all ideas one by one and write them on large paper (number each idea).
Discuss all ideas and delete duplicates or add new ideas
Have everyone in the group rank the top ten ideas from 1 to 10 (10 being the most pressing issue, 1 being the least)
Have everyone write their ranking in the first column to the left of the list
This activity will take some preparation before hand. Every person in the room will need a sheet of paper and a writing utensil. Additionally you will need to divide the room into groups of about 5 people, depending on number of people in attendance. For each group you will need to have a large piece of paper/poster board. It will need to be large enough so that the groups can write their ideas on it and have it be visible. On each large sheet you will need to have drawn/created 7 equally-sized columns. These columns will be used to rank their ideas.
Give everyone about five minutes to individually think about and write down all the issues that Nonprofit organization’s face. Have them write these on one side of the individual sheet of paper. After the alloted time have them get in their groups and discuss each idea and have one person write it up will numbering them. Have them also discuss their ideas and generate new ideas or delete duplicates. Allow 10 to 15 minutes for this.
After the list has been finalized in each group have each person individually choose what they think are the top 10 most pressing issues facing nonprofit organizations. Have them order them from 1 to 10 (with 10 being the most pressing issue) and then write these rankings in the first column directly to the left of the list.
After this has been completed have someone add up all the points given to each idea and then write the totals on the next column to the left. Have this person circle the top 10 items with the most points.

8. How Can it be Used in Your Organization? (cont.)
Brainstorming:
From the list of your top 10 rank what you think the top 5 issues are (again with 5 being the most pressing)
Have everyone right their ratings on the next column to the left
Total the points and write totals in next column to the left and circle the top five with the most points
Again have everyone rank these top five issues from least pressing to most pressing (5 being the most pressing)
Have each individual right their totals of their top 5 in the next column to the left
Total these and write it the column the left
After the first selection of the top 10 most pressing issues we are now trying to get it down to the top 5 issues. Have each person in each group rank what they think are the top 5 issues from the list of 10 in each group (again with 5 being the most pressing issue). Have them write their ranking in the next column to the left. Have someone in the group total these rankings and circle the 5 ideas from the list of 10 that received the most points.
Now that you have gotten to five you will look to order these ideas from most pressing to least pressing. Have everyone repeat the process (rank the 5 ideas from 1 to 5, with 5 being the most pressing). Write in the next column to the left each individual ranking, and then in the next column the totals. You have now come to a consensus of what the top 5 issues are and the which the most pressing they are. Have each group in the last column on the left (the left-most column) number the agreed upon most pressing issues with #1 being the most pressing issue, #2 the next most pressing issue, and so on.
Make sure to allow enough time in this process for each group to complete each step before moving on.
After each group has their top 5 discuss these together as an entire group.

9. How It Works Eligibility
Visit the following website to check eligibility:
Fill out and submit the eligibility certification packet
It is important to verify eligibility. On the website on the slide there are general eligibility questions that will help you determine if you organization is eligible or not. Review the site and make sure that these conditions are met. If so, you will need to turn in an eligibility certification packet which can be found on the website. This would need to be done by April 2 (if without a nomination to the board of examiners)

10. How It Works (cont.) Application process
The two websites are given to help with the application process. In the first website a general overview of the application needed to be filled is given. It would be useful to visit and review this page as it will help give an understanding of what is expected in the application and the format of the application. The second website is an in-depth description of the process. As time permits, you can visit the website or have handouts and go through the process. Again when applying it would be extremely important to have these available and ready.

11. How it Works (cont.) Stages of the process The Independent Review
A team of Board Examiners will be assigned
Your application will be reviewed
There are three stages of the process: the independent review, the consensus review, and the site visit. It is important to recognize that an application for the Baldrige award will not guarantee all three stages. Continuation to the next stage will determined at each stage of the process.
The first stage is the Independent Review. This is the first review for your application. After it has been received you will have a team of board examiners assigned to your application. The members of this board will individually review your application. During this review they will judge it based on the Criteria for Performance and will identify strengths and opportunities for improvement. These are the seven categories that were discussed a the beginning of the presentation. Judges will review the scoring to select applicants to continue to the next review.

12. How it Works (cont.) The Consensus Review
If selected, application will be sent to a group of examiners
There will be a two part series of reviews:
The first series will be virtually through a secure web site
The second series will be through focused conference calls
Through the reviews feedback and scores will be given
Selected organizations will move forward.
After having completed the first stage, selected applications will move on. Through reviews led by a senior examiner, in groups of 5 to 8 examiners who have scored the application, examiners will go through the reviews in order to determine which organizations will move forward. The first step will be a virtual review through a secure web site. This will be done by each examiner to again review the application of the organization. Once that step is complete the group of examiners will then participate in a focused conference call. The purpose of this will be to arrive to a complete consensus on each scoring item. The examiners will then give feedback and scores for the organization. A panel of judges will determine which organizations will move on to the next step of the process. If the organization is not selected they will receive an feedback report.

13. How it Works (cont.) The Site Visit
Team of examiners will visit the organization
The will spend up to one week on-site
2-3 days at the company site
About 2 days in preparing the report
These visits consist of a review of pertinent records and date and interviews
The group will submit the report to the Panel of Judges
Once an organization is selected for a site visit, they must provide updates for all results in the application. Through the site visit the team of examiners will spend time on-site to verify and clarify the information in application. The will review company records and conduct interview to verify this information. Once they have completed the site visit they will prepare a report and submit it to the panel of judges. The panel of judges will conduct final reviews and then select award recipients. They will also select organizations that did not receive the award to be recognized for “best practices”.

14. How It Works (cont.)
This is an overall review of how the process works. You can quickly review the steps of the evaluations, and review the dates listed.

15. How it Works (cont.) What are benefits to going through this process?
Going through an internal analysis
Getting an outside perspective/receiving feedback
National Recognition for Performance Excellence
There are many benefits for going through this process. But some major benefits are going through the internal analysis, getting an outside perspective and receiving feedback, and possibly gaining national recognition for performance excellence. One of the most beneficial parts of going through the Baldrige application process is that you go through an internal analysis while preparing the application and so forth. This can be an invaluable experience because it will force you to think through you organization’s strategy and to see how in line you are. It will also help you discover what some of the current challenges are, especially those that have been hard to recognize or admit.
Another incredible benefit is to receive the outside perspective and feedback from professionals. They will able to critically analyze your organization and its current standing of the organization. The feedback they give you will be invaluable as it can help you in improving the organization.
The last is receiving national recognition. This is an honor that is given to few companies, and if selected you will be added to the list of nationally recognized companies for your performance excellence. Another important thing to keep in mind is that even if you are not selected for the award, you might be awarded a “Best practice” on a process in your organization. While not recognizing the entire organization, this can give your organization exposure for having this ”best practice”.

16. City of Coral Springs Example
Background
Chartered in 1963
Located in the Broward County in southern Florida
Home to about 132,000 people
City has about 770 full-time employees and about 300 part-time/temporary employees
Received the award in 2007
The city of Coral Springs received the award in 2007; during the first year that the award was available to nonprofit organizations. This city once known as the “City in the country” is located in southern Florida. During the 1980’s it experienced rapid growth and became one of the fastest growing cities in the nation. It is now the 13th largest city in the state. This city offers a variety of services including police patrol, fire prevention suppression, emergency medical services, and many other services found in any city. The city has worked to value and work with the two primary customers: residents and businesses.
As part of its strategic plan the city has identified four core values that it focuses on; customer focus, leadership, empowered employees, and continuous improvement. These four core values have helped it meet the needs of its two core customers. This strategic plan has helped the city improve economically, how it is viewed by its residents, and on how it is viewed by its employees.

17. City of Coral Springs Example(cont.)
Achievements
The city received AAA credit rating
Crime rate decreased by nearly half over 10 years
Since 1995, 95% or more of residents have stated to be satisfied with city services
There was a 21% increase in business satisfaction from the years of 2004 to 2008
Coral city really saw some major improvement. The AAA credit rating that they received was from all three of the nation’s largest bond rating agencies. This has been consistent for the past seven years. This really showed how well the city was doing economically. The city also saw major improvement in several other areas including a decrease in crime rate, and increases in resident satisfaction with city services and business satisfaction. The increase in business satisfaction was seen over a four year period. In 2004 the business satisfaction percentage was 76 and in four years it rose to 97 in 2008.
Other great achievements have included receiving the Florida Governor's Sterling Award in 1997 and again in This award is an award given for organizational performance and management excellence and is the highest honor in Florida. Another great achievement has been that the strategic planning process used by the city has been cited as a best practice by many organizations including the American Productivity and Quality Center. They have also been greatly recognized for their employee relations. 90 percent of employees have reported as “being satisfied” with their jobs for the past 10 years. The city’s employee turnover rate declined 3 percent from 1997 to And perhaps just as rewarding as any other achievement, in a survey conducted in percent of employees agreed that the organization is highly ethical.

18. Exercise 1 (Flagstaff District Case Study)
Go to:
Read Organizational Profile (both Organizational Environment and Organizational Challenges)
Answer the following questions:
Which markets is the company pursuing?
What unique values does the company offer to the customers in these markets?
What resources and capabilities are required to deliver that unique value better than competitors?
How will the company sustain this strategy?
Instruct everyone to go to the link on this slide, or have it already printed for them. The section selected is the Organizational profile. The profile is basically a summary of what environment the organization is in. It will analyze several factors to help answer the questions on the slide. If the profile is completed effectively and clearly, the answers to these questions should be clear. Have the group read these questions and then discuss together each of them to answer them.
There are no right or wrong answers to these questions, and the answers can be varied. The point is to see how effective the organizational profile of the Flagstaff District was in analyzing and describing its current situation. After having discussed and answered the questions on the slide consider and discuss the following questions with the group?
Which of these elements was the clearest and why?
Which of these elements was the least clearest?
What could have been modified, added, or left out in order for this question to have been answered?
Can these questions be clearly answered and stated for our company?

19. Exercise 2 (Self-Assessment)
Preparing your Organizational Profile
Organizational Description
What is our product offering?
What are our core competencies?
Where are we competing (who are our customers)?
Who are our key suppliers?
Organizational Situation
Who are our key competitors?
How fast is the organization growing?
How does the company evaluate/learn
Now that we have reviewed a case, and had some experience with the process, it is important to begin assessing your own company. A self-assessment will benefit the organization by helping you see strengths and weakness of the organization. As you analyze these, you will see opportunities for improvement which can help start a needed change in your organization. It will help you asses your current strategy and see how effective it is in the current market. Another important benefit that comes from self-assessment is that it can help you get your entire organization on the same page.
While these are some basic questions, building your organizational profile can make sure that everyone knows key factors and resources of the organization. An even more in-depth guide can be found at the following website: Distribute another piece of paper. Give everyone about ten minutes to answer the questions on the slide individually. After ten minutes put people in groups of about five. Have them discuss what they wrote and then come up with a single answer for each question. After another minutes go through together and answer the questions. Discuss the importance of everyone being on the same page for each question.
As stated before self-assessment can be very useful. Other helpful links in completing this are as follows:
This website includes a very simple questionnaire that can be completed. It helps you think about how clear the processes and procedures in your organization are. This is geared for employees so that they can asses their knowledge of the business.
This is another questionnaire that can help you asses your organization’s performance. This would be distributed to employees as well.

20. Summary Malcolm Baldrige Award established in 1987
3 Part mission of the Award
The Nonprofit category was added in 2007
Since then 4 Nonprofit Organizations have won it
Eligibility For the Award
Application Process for the Award
This award was established in 1987 by the US Congress in order to help the US improve and become a world leader in quality management. This Program helps in three ways. The first is to identify and recognize role-model businesses. The recipients of these awards are recognized as leaders in quality management. The second is to establish a criteria for evaluating improvement efforts. This is important as the guidelines for receiving the award need to be drawn very clearly. The last is to disseminate and share best practices. After a company has won the award, much information of their application and reviews are available. This is helpful to other organizations as it can help them see what these organizations have done to become award recipients, and then allows them to use and apply the processes, principles, and “best practices” in their own organizations. The Nonprofit category is quite new, and has only been opened since Since then the four organizations that have received the award have been: U.S. Army Armament Research, Development and Engineering Center (ARDEC), City of Coral Springs, VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center and, Concordia Publishing Homes.
There are very rigid eligibility restrictions. Make sure to review the eligibility form and to spend time on the NSIT website to become familiar with the application process. The application process consists of three reviews. The independent review, the consensus review, and the site visit. As you go through this process your organization will be benefited by going through an internal analysis, getting an outside perspective, receiving invaluable feedback, and if awarded you can receive national recognition for performance excellence.

21. Readings List and Sources
The Foundation for the Malcolm Baldrige National Quality Award. (2011). <
The National Institute of Standards and Technology (NIST). (2012, April 26). Results with baldrige in nonprofit.<
Ruben, Brent D., Travis Russ, Stacy M. Smulowitz, Stacey L. Connaughton, (2007) "Evaluating the impact of organizational self-assessment in higher education: The Malcolm Baldrige/Excellence in Higher Education framework", Leadership & Organization Development Journal, Vol. 28 Iss: 3, pp.230 – 250
University of Wisconsin - Stout. (2012). Malcom baldrige award frequently asked questions. <
U.S. Congress House, Committee On Science. (2004).Malcolm baldrige awards for nonprofit organizations: report together with an additional view (to accompany h.r. 3389) (including cost estimate of the congressional budget office).. West Lafayette, IN: U.S. G.P.O