Baldrige National Quality Program Information and Analysis: The Foundation for Performance Excellence Harry S. Hertz DAMA - NCR Meeting March 13, 2001

Baldrige National Quality Program Outline l Baldrige Performance Excellence l The Role of Information and Analysis l Self-Assessment l Role Model Characteristics l Future Challenges

Baldrige National Quality Program Performance Excellence An aligned approach to organizational performance management that results in: delivering ever-improving value to customers, resulting in marketplace success improving organizational effectiveness and capabilities organizational and personal learning

Baldrige National Quality Program “The society which scorns excellence in plumbing as a humble activity and tolerates shoddiness in philosophy because it is an exalted activity will have neither good plumbing nor good philosophy…neither its pipes nor its theories will hold water.” John W. Gardner

Baldrige National Quality Program Criteria for Performance Excellence l An assessment tool l Seven Category integrated framework l Updated regularly

Baldrige National Quality Program

Category Point Values (2001) 1Leadership125 2Strategic Planning 85 3Customer and Market Focus 85 4Information and Analysis 85 5Human Resource Focus 85 6Process Management 85 7Business Results

Baldrige National Quality Program Information and Analysis (2001) ` 4.1 Measurement and Analysis of Organizational Performance 4.1 Measurement and Analysis of Organizational Performance 4.2 Information Management 4.2 Information Management Performance Management Performance Analysis Data Availability Hardware and Software Quality

Baldrige National Quality Program Why Self-Assess? Drivers l Customers/competitors drive need to change l Industry in state of flux l Maintain leadership position l Keep business healthy

Baldrige National Quality Program Why Self-Assess? Benefits l Jump start a change initiative. l Energize existing improvement initiatives. l Focus the organization on common goals. l Align improvement efforts.

Baldrige National Quality Program 10-Step Plan for Self-Assessment and Action 1. ID organizational boundaries. 2. Decide on format. 3. Write Organizational Profile. 4. Select 7 champions. 5. Practice process with Item Complete other Items. 7. Share responses/ finalize findings. 8. Determine +’s and OFIs. 9. Develop/implement action plan. 10. Evaluate/improve process.

Baldrige National Quality Program Step 1 - Define the Organization l Purpose : Ensure “doable” improvements and consistent data collection. l Process : Determine breadth of inquiry. Indicate on org. chart.

Baldrige National Quality Program Step 2 - Decide on Format l Purpose : Clarify expectations and resources. l Process : Determine if oral/written and what steps to use.

Baldrige National Quality Program Step 3 - Write Organizational Profile l Purpose : Describe what is relevant and important; ensure common understanding; guide selection of info/data. l Process : Review directions. Draft response. Reach consensus. Finalize.

Baldrige National Quality Program Step 3 - Write Profile (Cont’d.) l Basic description of the organization -Organizational Environment -Organizational Relationships -Competitive Situation -Strategic Challenges -Performance Improvement System

Baldrige National Quality Program Step 3: Write Profile (Cont’d.) Basic Description l regulatory environment l customer groups/market segments l suppliers/dealers and relationships l products/services l organizational context/culture l employees/staff - ed. level, diversity, bargaining units, contracts, safety requirements l equipment, facilities, technologies used

Baldrige National Quality Program Step 3: Write Profile (Cont’d.) Competitive Situation and Strategic Challenges l Numbers/types of competitors and key collaborators l Position (relative size/growth) in your sector l Principal factors determining competitive success l Changes affecting competition

Baldrige National Quality Program Step 3: Write Profile (Cont’d.) Performance Improvement System l Approach to systematic evaluation and improvement l Organizational learning and knowledge sharing

Baldrige National Quality Program Value of Baldrige to U.S. Business Stimulating Quality Improvement Stimulating Competitiveness Improvement Extremely/Very Valuable (%) 79 67

Baldrige National Quality Program Stock Study Results

Baldrige National Quality Program Role Model Behavior l Effective, systematic approach l Well deployed l Evaluation, improvement, and learning in place l Alignment across Categories and with organizational needs

Baldrige National Quality Program

Baldrige Role Model Characteristics l Visionary Leadership Guidance (1.1) l Focused on Customer Satisfaction and Relationships (3.2) l High Performance Work Systems (5.1) l Focused on Employee Education/Development (5.2) l Customer and Market Knowledge (3.1) l Process Driven -- Manufacturing and Service (6.1) l Strong Financial and Market Results (7.2)

Baldrige National Quality Program “The task of the leader is to get people from where they are to where they have not been.” Henry Kissinger

Baldrige National Quality Program Greatest Improvements Award Recipients vs. Stage 1 l Human Resource Results (7.3) l Customer Focused Results (7.1) l Organizational Effectiveness Results (7.5) l Financial and Market Results (7.2) l Visionary Leadership Guidance (1.1) l Focus on Customer Satisfaction and Relationships (3.2)

Baldrige National Quality Program Needs Greatest Improvements Stage 1 Applicants l Supplier and Partner Results (7.4) l Human Resource Results (7.3) l Organizational Effectiveness Results (7.5)

Baldrige National Quality Program The slippery slope of performance !

Baldrige National Quality Program The Results Imperatives l Tied to Business and Customer Requirements l Tied to Key Processes l Tied to Strategy and Action Plans l Track Levels and Trends l Linked to Company-Level Information and Analyses l Actionable!

Baldrige National Quality Program 1999 Lessons Learned Common Themes l Senior leadership commitment is required l Strategic planning ties all of the criteria together l Use multiple, different customer listening posts l Use data selectively, segment, analyze, act l Involved and empowered employees are motivated l All work is a process l Build your system to last