Utilizing the Baldrige Criteria for Performance Excellence to Guide Strategic Planning Robert Schoch Director of Business Administration North Penn School District

My Beliefs High performing organizations require Strong strategic planning-district, school, support service departments Strong technology planning Quality management system (ISO 9000 and/or Baldrige) Beliefs applied to current situation Budget balancing options developed, selected, and implemented remaining true to core values from strategic plan Extensive use of quality management principles and practices Systematic benchmarking to prove cost effectiveness Process management Lean Six Sigma analysis-advanced process cost analysis Systematic program budgeting and evaluation, per cycle The current economic situation and likelihood of low Act 1 Index for several years will test capabilities and working relationships

History of Quality Management Deming Juran Statistical Process Control Total Quality Management Baldrige National Quality Program Lean Six Sigma

Principles and Practices of High Performing Organizations Continuous improvement mindset Reduce variability of results Manage the pace of change Share knowledge about what works best Practices Systematic benchmarking to identify and model best practices Process management tools Performance measurement and performance management

Baldrige National Quality Program Education Criteria for Performance Excellence Leadership Senior Leadership Governance and Societal Responsibilities Strategic Planning Strategy Development Strategy Deployment Customer Focus Customer Engagement Voice of the Customer

Baldrige National Quality Program Education Criteria for Performance Excellence Measurement, Analysis and Knowledge Management Measurement, Analysis, and Improvement of Organizational Performance Management of Information, Knowledge, and Information Technology Workforce Focus Workforce Engagement Workforce Environment Process Management Work Systems Work Processes

Baldrige National Quality Program Education Criteria for Performance Excellence Results Student Learning Outcomes Customer-Focused Outcomes Budgetary, Financial, and Market Outcomes Workforce-Focused Outcomes Process Effectiveness Outcomes Leadership Outcomes

Interrelated Core Values and Concepts Baldrige National Quality Program Visionary leadership Learning-centered education 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

North Penn School District’s Journey to Performance Excellence Decision to use Effective Schools model for instructional improvement Decision to use Baldrige Quality System for support services improvement Began attending annual National Quality Education Conference-about 600 attendees who are working on Baldrige model for education (K12, Community College, higher education) Hired training consultants expert in quality management Established Quality Improvement Team Applied for state Baldrige program, Keystone Alliance for Performance Excellence (KAPE), in March 2010 Site visit by team of examiners in May 2010 Feedback report in fall of 2010 Award in November 2010

History of Baldrige Program The Malcolm Baldrige National Quality Improvement Act of 1987 created an award program to: Identify/recognize role model organizations Establish criteria for evaluating improvement efforts Disseminate/share best practices 1988 Business (Manufacturing, Service, Small Business) 1998 Healthcare and Education 2006 Non Profit and Government

Baldrige Award Recipients National Award Recipients Montgomery County Public Schools Iredell-Statesville Schools Richland College K.W. Monfort College of Business Community Consolidated District 15 University of Wisconsin-Stout Pearl River School District Jenks School District Chugach School District Pennsylvania KAPE Award Recipients North Penn School District

What are the Criteria? A set of expectations or requirements A structured approach to performance improvement A framework for a systems view of performance management De facto definition of performance excellence Basis for continuous improvement The Criteria are non prescriptive

Continuous Improvement The Baldrige Criteria are based on cycles of continuous improvement. These improvement cycles should be imbedded in all work processes. Act Plan Study Do

The Criteria Asks Four Basic Questions Approach – what methods and processes is an organization using to carry out its work? Deployment – to what extent (breadth and depth) are the organization’s approaches deployed to relevant work processes?

The Criteria Asks Four Basic Questions – cont’d Results – what are the outcomes achieved by the organization? Learning – is the organization improving its methods, processes, and results through cycles of evaluation and improvement (continuous improvements)

2011-2012 Education Criteria for Performance Excellence Consist of Seven Categories Category 1 – Leadership Category 2 – Strategic Planning Category 3 – Customer Focus Category 4 – Measurement, Analysis and Knowledge Management Category 5 – Workforce Focus Category 6 – Operations Focus Category 7 – Results

Category 1 Leadership Category 1 asks how does leadership…. Establish, communicate, demonstrate visions and values? e.g. processes used to communicate the values of the organization – senior leaders involved in improvement efforts How do senior leader communicate key decision, encourage two way communication throughout the organization?

Category 1 – cont’d Ensure legal and ethical behavior? e.g. ethics policy - deployment Create a sustainable organization? e.g. culture of performance improvement, accomplishment of strategic objectives Create a focus on accomplishing the organizations objectives? e.g. progress against the strategic plan

Category 2 Strategic Planning Category 2 asks how is the…. Strategic plan – short and long term objectives developed (planning process – inputs) and a timetable for accomplishing them established? e.g. inputs – core competencies, student data Short and long term challenges and opportunities addressed? e.g. budget cuts

Category 2 – cont’d Strategic objectives converted into action plans and how are they deployed and performance measures established for tracking progress? How strategic objectives and action plans are modified if circumstances change?

Category 3 Customer Focus Category 3 asks, how does your organization…. Listen to students and stakeholders to obtain actionable information (voice of the customer – requirements expectations, desires)? Determine student and stakeholder satisfaction and engagement (engagement – retention, loyalty, advocate/recommend your organizations programs)?

Category 3 cont’d Determine educational programs? e.g. student data – voice of the customer Manage relationships with students and stakeholder? Manage student and stakeholder complaints?

Category 4 Measurement, Analysis and Knowledge Management Category 4 asks how does your organization… Select and collect data to track daily operations, organizational performance, progress against strategic objectives and action plans and voice of the customer data? Use data for decision making? Ensure accuracy and quality of data?

Category 4 – cont’d Select, collect and use comparative data? Review organizational performance and translate performance review findings into actions for improvement? Ensure transfer of best practices? Ensure hardware and software reliability and security?

Category 5 Workforce Focus Category 5 asks, how does your organization… Assess workforce capability and capacity needs to accomplish the work of the organization? e.g. capability and capacity can be skills needed (teaching new math courses) based on student data outcomes– sufficient staffing to deliver various programs

Category 5 – cont’d Develop your workforce - design and deliver needed leadership and workforce training? e.g. professional development programs Ensure workforce health, safety and security? Determine key elements of workforce engagement?

Category 5 – cont’d How does your workforce performance management system promote high performance? e.g. compensation, recognition, rewards Determine workforce engagement and satisfaction (engagement – workforce commitment to accomplishing the organizations goals, motivated) ? e.g. survey to determine level of engagement

Category 6 Operations Focus Category 6 asks, what are your organizations… Key processes and their performance measures? e.g. deliver programs to the students Key support processes and their performance measures? e.g. administrative processes

Category 6 – cont’d How are processes designed taking into account new technology, productivity, innovation and cycle time? e.g. student data can be an input to the design process - did the process achieved its intended design? How are processes improved? e.g. Six Sigma/Lean, PDSA

Processes…identify Two instructional service delivery processes: 1. 2. Two administrative processes:

Category 7 Results Category 7 asks, what are your organizations trends in.. Student learning and process outcomes e.g. reading level outcomes of various programs, SAT scores, mathematics Customer focused outcomes e.g. student satisfaction outcome

Category 7 – cont’d Workforce (teachers/admin staff) focused outcomes e.g. staff satisfaction – turnover rate Leadership and governance outcomes e.g. accomplishment of the strategic plan, surpassing legal and regulatory requirements, measures of ethical behavior

Category 7 cont’d Budgetary, financial, and market outcomes e.g. cost per student, budget growth, budget distribution (school, support, operations)

Why Baldrige – the message from leadership? Leadership sets direction – Criteria requirement We want to be an organization known for excellence – this is our commitment How will we accomplish this goal? The model of performance excellence we will use is the Baldrige Educational Criteria for Performance Excellence, a world class model

How will we know we are achieving our goal of performance excellence – application and measurement against the Criteria Application and the award are verification that we are on the right path to excellence It’s not about receiving an award (recognition is good), it’s about performance excellence and a commitment to excellence

The Criteria are the basics that any organization of excellence would do: Examples: Manage and make decisions by fact Measure customer satisfaction (student) Have a process to address customer complaints Improve all of our work processes Measure staff satisfaction and engagement Have a plan (strategic) and align the organization to the plan

From an organizational view… If we are recognized as being the best school district, against a world class standard – families seeking to have their children attend great schools would be motivated to move to our district – and select our school vs. competitors. More families buying homes = more school taxes being paid = more revenue for our school in an environment with shrinking funding.

We should have organizational performance data in critical areas and compare ourselves to best in class to know we are making progress as and organization (National Award recipients) – Criteria requirement Anyone can say they are good – we can prove it, we have compared ourselves to a world class standard (as Deming would say “how do you know” or “where is your data”) “I would not want to compete against a Baldrige winner” – H. Zechman –Stoner Inc.

What’s in it for me????? The processes we work in and interface with are thoughtfully designed and improved (less frustration – less non value added work – input to the design) – Criteria requirement We make decisions based on facts and data – not hunch and guess – Criteria requirement We measure workforce satisfaction and engagement and act on the findings and measure improvement (motivated, happier staff)– Criteria requirement

We know where we are going and why - our efforts are aligned (achievement of our strategic plan) and we measure our progress – no more where are we going and why am I being asked to work on this (less frustration)? – Criteria requirement

Is Baldrige something extra to do? The answer is no! It is the way we should be working. It is not something extra to do. Example: Managing and making decisions with data or improving processes so they are efficient and effective should be the way we work. If we are making decisions with facts and data – we should not say “we are now doing Baldrige” this is the way we should work.

If we are establishing process performance metrics and improving process that touch the students (focus on the customer) and staff – we should not say “we are doing Baldrige” – this is the way we should work. It takes time for the transition to take place from how we are comfortable working to a better way. It takes time to change a culture.

“By what method will you improve?” Dr. Edwards Deming

North Penn’s Next Steps in Continuous Improvement Increase internal capacity 6 to 8 Baldrige examiners on staff 10 Lean Six Sigma projects-rapid cycle 200 processes per year documented in standard format with cross functional flowcharts-form the basis for identifying root cause of unreliable processes, designing and sustaining improvements Implement feedback report from state level Baldrige Program (Keystone Alliance for Performance Excellence)

Mindset Matters We are facing the most difficult challenge of our generation, improving educational institutions vital to national prosperity at a time of unprecedented financial difficulty. Involving the employees and the broader community in the challenge will result in discovering many opportunities to do better with less. Many of the major cost reductions require extensive cooperation from numerous employees. Lack of cooperation will postpone savings and/or reduce financial potential achieved. Establish challenges at a school, department, or function level Cautions Staff demoralized or fearing job loss will not be helpful, could resist or sabotage efforts Leaders must show confidence Positive mindset and approach represents enlightened self-interest, making job easier instead of more difficult

Employee Engagement Innovation Celebration 2012-April 18 Employee Suggestion Program Over 75 ideas submitted on Budget Balancing Suggestion Form Employee Challenges Mid-year reductions in current year-$500,000 target for schools, $1 million for central administration and support services Improvement Challenge-3 year program 50 ideas worth $500,000 New ideas each year Sustainable improvements Public presentation of ideas annually in May at Innovation Celebration (science fair format) Objective: prove cost effectiveness to community

Opportunities to Become Involved In Baldrige and Quality Management Visits to Baldrige recognized organizations Participate in KAPE as an examiner Attend National Quality in Education Conference, November 2012 Join regional American Society for Quality (ASQ)