Malcolm Baldrige National Quality Award: Malcolm Baldrige National Quality Award: Service Sector Tylor Bantilan

Contents: Malcolm Baldrige Award –Characteristics and structure MBNQA Categories Brainstorming activity –How this tool is able to benefit your company MBNQA evaluation process MBNQA Scoring metrics and process MBNQA recipient summary – Ritz Carlton example Activity – “plan, do, check, act” Summary and readings list

Malcolm Baldrige National Quality Award (MBNQA) –The award is open to small (less than 500 employees) and large firms (more than 500 employees) in the following sectors: Manufacturing, healthcare, education, service sectors. The MBNQA for Performance Excellence serve two main purposes: –Identify companies that will serve as role models in organization –Help organizations asses improvement efforts Malcolm Baldrige National Quality Award:

Key Characteristics of the MBNQA –Focus on business results –Tools used to obtain results are non-prescriptive and adaptive –The criteria support company-wide alignment of goals and processes. –Supports goal-based assessment Malcolm Baldrige National Quality Award: Service Sector:

Baldrige Award Framework: 7 categories

Brainstorming Activity: Although Baldrige examiners have the knowledge and training necessary to evaluate, you know best what is needed in your company. –Thus, identify core strengths in each of the 7 categories –Identify areas for improvement (AFI) in each category Perform Self analysis in each category –Brainstorm two strengths and AFI in each category –Weigh importance –Brainstorm plan of action for improvements

Brainstorming Activity:

Brainstorming Activity: (Cont.)

MBNQA Categories: Category 1 – Leadership –Used to evaluate top management –Identify role of involvement in organization –Examines how organization fulfills responsibility as a citizen –How company supports community Category 2 – Strategic Planning –Describes how organization develops and implements key strategic processes –Examines what action plans exists –Outlines company’s goals and intended plans to reach desired goals

Category 3 – Customer Focus –Examines how organization develops customers in long-term relationship –How organization adheres to voice of customer (VOC) –Examines how company identifies customer needs –How organization innovates to fulfill desires of customer Category 4 – Measurement, analysis, and Knowledge of Management –Identifies how organization gathers, asses, and implement data Includes: financial, process, operation measures, etc. –How company manages information to continue performance MBNQA Categories: (Cont.)

Category 5 – Workforce Focus –Examines how company develops and uses its employees –Allows for employee improvement and personal growth –Describes how organization manages workforce Category 6 – Operations Focus –Describes how company manages, organizes and improves is process systems –Identifies how processes deliver on customer value –Identifies emergency systems in process MBNQA Categories: (Cont.)

Category 7 – Results –Describes how results are documented and used to improve organization –How results targets customer satisfaction –Summarizes how results are used efficiently –Examines how performance measures compare to competitors MBNQA Categories: (Cont.)

Baldrige Evaluation Process: Independent review Select for review? Application Submission Feedback to applicant (report) Consensus Review Select for review? Site Visit Review Select for review? Stage 1Stage 2Stage 3 Feedback to applicant (report) Feedback Yes No Yes No Yes

Baldrige Scoring: Process

Baldrige Scoring: Process (Cont.)

In 1999 the Ritz Carlton Hotels LLC awarded for service sector in MBNQA Major factor in receiving award was the “involving of people in the planning of work that affected them” Ritz Carlton is currently a five-star resort under Marriott International Focus is on Customers desire and Customer satisfaction Customers at the Ritz Carlton have an overall satisfaction of 91% MBNQA: Service Award Recipient Ritz Carlton Hotels

MBNQA: Activity Discuss those activities in organization which align with MBNQA criteria Identify approach, development, results, and improvements for each category Create roadmap for company excellence List these activities

MBNQA: Activity (Cont.) Ritz Carlton Example The following is a template used by Ritz Carlton More information found at patapsco.nist.gov Award_Recipients/

Companies in the service sector who sell or buy services may qualify for the Malcolm Baldrige award Criteria for the MBNQA are used to provide feedback to organizations in improving quality Companies seeking to apply for the MBNQA may apply at Summary:

2011 – 2012 Business Non-profit criteria - Malcolm Baldrige National Quality Awardwww.nist.gov –service sector Ritz Carlton award application summary Managing Quality (pg. 69 – 79) – Tom Foster Readings list: