The Baldrige Award Dorieanne Bati Katherine Jose Jonathan Munar Christopher Taylor HCA622—Quality Appraisal & Evaluation Dr. Stephen Bowman National University

Malcolm Baldrige Nominated to be Secretary of Commerce President to chair a Cabinet-level Trade Strike Force Award-winning managerial excellence contributed to long-term improvement in economy, efficiency, and effectiveness in government

History The need to focus on quality Enhance the competitiveness of U.S. businesses Congress created program to: Identify and recognize role-model businesses Establish criteria for evaluating improvement efforts Disseminate and share best practices

Baldrige Performance Excellence Program Raise awareness about the importance of performance excellence in driving the U.S. and global economy Educate leaders in businesses, schools, health care organizations, and government and nonprofit agencies about the practices of best-in-class organizations Provide organizational assessment tools and criteria

Malcolm Baldrige National Quality Award Three awards given annually in each of six categories: Manufacturing Service Company Small business Education Healthcare Nonprofit

Intro to Requirements Health care organizations have recognized the MBQNA’s rigorous performance excellence standards can assist in stimulating their improvement efforts. Studies by the U.S. Commerce Department’s National Institute of Standard and Technology (NIST), universities, business organizations, and the U.S. General Accounting Office have established that investing in quality principles and performance excellence pays off yielding increased production, content employees and customers, and enhanced profitability—for both customers and investors.  

Requirements Any ‘for-profit’ or ‘not-for-profit’ public or private organization, manufacturing and service to those that deliver educational or health care services headquartered in the United States or its territories, including U.S. subunits of foreign companies is qualified to apply for the award. The criteria for the Baldrige Award have played an vital role in achieving the goals established by Congress. Broadly accepted worldwide.

2 Goals, 7 Criterion Criteria—framework intended to help organizations increase their competitiveness by focusing on 2 goals: delivering ever-improving significance to customers and improving overall organizational performance. Organizations that apply are considered “outstanding” in the 7 areas of: leadership; strategic planning; customer and market focus (for health care—focus on patients, other customers, and markets); information and analysis; human resource focus (for health care—staff focus); process management, and business results (for health care—organizational performance results).

7 Criterion Explained Leadership Strategic Planning Explanation Examines how senior executives guide the organization and how the organization addresses its responsibilities to the public and practices good citizenship. Examines how the organization sets strategic directions and how it determines key action plans. Examines how the organization determines requirements and expectations of customers and markets. Examines the management, effective use, and analysis of data and information to support key organization processes and the organization’s performance management system. Examines how the organization enables its workforce to develop its full potential and how the workforce is aligned with the organization’s objectives. Examines aspects of how key production/delivery and support processes are designed, managed, and improved. Examines the organization’s performance and improvement in its key business areas: customer satisfaction, financial and marketplace performance, human resources, supplier and partner performance, and operational performance. The category also examines how the organization performs relative to competitors. Leadership Strategic Planning Customer and Market Focus Information and Analysis Human Resource Focus Process Management Business Results

The application and review process is considered a very cost-effective and comprehensive business health audit.  Application fees charged to cover expenses related to distribution and review of applications and developments of feedback reports.  Ranging from approximately $500 for non-profit education institutions to $5,000 for large organizations. 300 hours of analysis by a minimum of eight business and quality experts is included.  1,000 hours for site-visited organizations.

Baldrige Award Advantages There are 3 distinct advantages that organizations will experience with the Baldrige Excellence Program and they are: 1. Prestige from being recognized for organizational excellence. 2. Organizational improvement by meeting the requirements and following the criteria. 3. Return on Investment.

Baldrige Award Advantages The Baldrige Award is the only Presidential Award for that recognizes companies for excellence in the United States. The criteria for this award are so comprehensive that their model is now being used internationally. There are Baldrige Award recipients from Fortune 500 companies and organizations from various sectors of business. Since 1988 only 93 companies have received the Baldrige Award.

Baldrige Award Advantages The process in which a company works to meet the criteria and regulations in the Balrige Award Excellence Program pushes the organization to improve itself in all aspects and dedicate time and resources to qualify for assessment and the improvements and lessons learned will stick with the company whether or not they are awarded.

Businesses need cash to operate and most executives will not agree to invest unless there is Return on Investment. Jerry Rose, Vice President, Cargill, Inc. explained that businesses can achieve up to 30% cumulative earnings after taxes depending on degree of deployment with the Baldrige Criteria. According to Jerry Rose, there is payback as long as the organization is committed.

Sharp HealthCare The Sharp Experience Customer focus leads to Customer Satisfaction Great place to work, practice medicine Better health for whole community

MEDRAD Who? Customer Loyalty Exceeds Best-in-Class VIP Caring Culture

Studer Group Who? Culture of Satisfied Customers Great place to work Commitment to Community

Award Recipient Similarities Patient Focus Staff Focus Community Commitment

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