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Using National Awards for Excellence to Drive and Monitor Performance*

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1 Using National Awards for Excellence to Drive and Monitor Performance*
Milton J. Kowalewski, Jr., ASQ Fellow 2011 ASQ Salt Lake Section 0615 Annual Symposium 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

2 History of National Awards
Deming Prize introduced in Japan in 1950s Malcolm Baldrige National Quality Award in United States of America in 1987 Malcolm Baldrige was the Secretary of Commerce in the U.S. from 1981 to 1987 and a proponent of quality management. Public Law was signed by President Reagan in The National Institute of Standards and Technology (NIST) oversees it. ASQ helps administer it. EFQM, the European Quality Award in 1988 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

3 Note: 1300 Organizations have applied since 1988
The recent increase is attributable to new sectors in education and health care-1997, and nonprofits (including government) in 2006 Note: 1300 Organizations have applied since 1988 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

4 Other awards In the U.S. state, local and regional awards account for 217 to 1,015 applications from 1991 to 1999 Since then the number of applications have declined to 167 in 2008 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

5 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

6 Alliance for Performance Excellence
The Alliance is a membership organization of US groups involved in performance excellence award programs formed in 2003 They represent over 50 awards across the U.S. However, 17 of the 50 US states are not affiliated Utah is renewing their efforts to give awards again through the Utah Quality Council that meets regularly at SLCC. If you are interested in participating contact me at 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

7 Changes in Baldrige Criteria
1988 Baldrige Categories 2009 Baldrige Categories Leadership Information and Analysis Strategic planning Strategic quality planning Customer focus Human resource utilization Measurement, analysis, and knowledge management Quality assurance of products and services Workforce focus Results from quality assurance products and services Process management Customer satisfaction Results 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

8 2009 Baldrige changes Increased focus on customer engagement, and the ability to identify and deliver relevant product offerings to customers now and in the future; Probing the contribution to societal responsibilities, including environmental, social, and economic systems; Probing of the relationship of core competencies to mission, strategy, and sustainability. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

9 Hedgehog Concept Jim Collins, in his book “Good to Great”, 2001 cautions us about our core competencies, he says, “Just because something is your core business-just because you have been doing it for years or perhaps decades-does not necessarily mean that you can be the best in the world at it…The good-to-great companies understand that doing what you are good at will only make you good: focusing solely on what you can potentially do better than any other organization is the only path to greatness.” 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

10 MBNQA MBNQA, the Malcolm Baldrige National Quality Award recognizes U.S. organizations for their achievements in quality and business performance. The award raises awareness about the importance of quality and performance excellence as a competitive strategy. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

11 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

12 MBNQA To receive the award, an organization must have a role-model organizational management system that ensures continuous improvement (the goal of ISO 9001) in the delivery of products and/or services, demonstrate efficient and effective operations, and provide a way of satisfying and responding to stakeholders. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

13 STAKEHOLDER MANAGEMENT*
9/20/2018 *Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

14 Engage stakeholder advocates to drive success!
Identify/assess stakeholders Engage high-influence/high stake advocates Periodically assess stakeholders RFP/ Procurement Phase Contract award Contract Administration Phase Project Close-out 9/20/2018 Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

15 2x2 MATRIX FOR ANALYSIS 9/20/2018 Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

16 Stakeholders Stakeholders Project Advocates and others
Attitude Identification /Symbol UDOT High Influence/Stake Supporter, plus STATE OF UTAH Neutral, zero CONTRACTORS PASSERS THROUGH High Influence, Low Stake FHWA CITIZENS Low Influence/High Stake EPA Detractor, minus OSHA TOURISTS Low Influence/Stake 9/20/2018 Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

17 1. Identify/Assess stakeholders
9/20/2018 Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

18 2. Engage high-influence/high stake advocates
9/20/2018 Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

19 Stakeholders Stakeholders Project Advocates and others
Attitude Identification /Symbol Goal: Engage high-influence/high stake advocates for UDOT High Influence/Stake Supporter, plus No change STATE OF UTAH Neutral, zero CONTRACTORS PASSERS THROUGH High Influence, Low Stake Neutral to Supporter role FHWA CITIZENS Low Influence/High Stake EPA Detractor, minus Detractor to Neutral role OSHA TOURISTS Low Influence/Stake 9/20/2018 Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

20 3. Periodically assess stakeholders
9/20/2018 *Philip J. Kangas, "Stakeholder Management 101," Quality Progress, March 2011, p. 72.

21 MBNQA Awards are presented annually in six categories of eligibility;
manufacturing, service, small business, education, health care, and nonprofit. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

22 The organizational profile at the top establishes the context for the way an organization operates. The system operations are in the center and are composed of six Baldrige categories that define the operations and the results achieved. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

23 Leadership triad Leadership Strategic planning Customer focus These emphasize the importance of leadership focus on strategy and customers. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

24 Results triad 5. Workforce focus 6. Process management 7. Results These signify that an organization’s workforce and key processes accomplish work of the organization that yields the overall performance results. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

25 The systems foundation (4) signifies the importance of this category to the effective management of the organization and to the fact-based knowledge-driven system for improving performance and competitiveness. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

26 Application/examination points possible
Leadership Strategic planning Customer focus Measurement, analysis, and knowledge management Workforce focus Process management Results 120 points 85 points 90 points 450 point Total= 1000 points 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

27 There are 11 core values and concepts embodied in the criteria
1. Visionary leadership 2. Customer-driven excellence 3. Organizational and personal learning 4. Valuing Workforce members and partners 5. Agility 6. Focus on the future 7. Managing innovation 8. Management by fact 9. Societal responsibility 10. Focus on results and creating value 11. Systems perspective 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

28 The Baldrige Award Process
Eligibility Application Application review Site visit review Judge’s review Award recipients 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

29 2010 Winners Healthcare (one): Small Business (three):
Advocate Good Samaritan Hospital, IL-4100 associates total Small Business (three): Freese and Nicols Inc., TX-450 employees-1st Architectural & Engineering Co. K&N Management, TX burgers, 7 restaurants Studer Group, FL-130 employees-won FL state award in 2007 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

30 2010 Winners Education (one): Manufacturing (two): Nonprofit (none)?
Montgomery County Public Schools, MD-144,000 students, 200 schools, from 160 countries, speaking 130 languages, with 22,230 employees, and 11,670 teachers, WOW! Manufacturing (two): Nestle Purina Petcare Co., MO-7228 employees, 23 plants MEDRAD Medical Instruments, PA-2200 employees, $625MM in revenues, 2003 Baldrige Winner Nonprofit (none)? 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

31 Previous Winners by State
2009-MO(3), NJ, NM 2008-MN, NC, CO 2007-OH, WI, CA, FL, US, NJ 2006-OK, CA, MS 2005-MN, LA, TX (2), OK, MI 2004-OK, TX (NAMEPLATE-2nd Award), CO, NJ 2003-PA (MEDRAD-1st Award), MO (2), TN, PA, IL FL 2002-IL, TX, MO 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

32 Previous Winners by State
2001-TX, TN, AK, NY, WI 2000-OH, TX, CO, NM 1999-TX, MN, GA, MN 1998-CA (2), TX (NAMEPLATE-1st Award) 1997-MN, CA, FL, NY 1996-CA, OH, MN, NY 1995-PA, NY 1994-NJ, TX, MO 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

33 Previous Winners by State
1993-TN, NJ 1992-NJ, TX, FL, GA, CA 1991-CA, MN, TX (MARLOWE INDUSTRIES*) 1990-MI, MN, TN, TX 1989-SC, NY 1988-IL, PA, OH * My employer 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

34 Baldrige Awards in States 23 States, 1 U.S. Award
** Army 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

35 State Awards 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

36                                                                                                “Quality is the result of a carefully constructed cultural environment. It has to be the fabric of the organization, not part of the fabric.”  – Phillip Crosby Texas Health Care Quality Improvement Award Texas Health Care Quality Improvement Award program for Texas hospitals is being sponsored again in 2010 – 2011 by TMF Health Quality Institute. TMF, the Medicare quality improvement organization for Texas, established the awards program in partnership with the Texas Hospital Association, Texas Organization of Rural and Community Hospitals, Texas Medical Association and Texas Osteopathic Medical Association. This non-competitive award program is designed to build on the quality of care that you already provide for your patients. Evidence of the award program’s success:  Out of approximately 375 hospitals in Texas, 227 nominated themselves for the award.  Of the 227 hospitals, 93 met the award criteria to qualify, with 27 receiving the highest award, the Award of Excellence, and 66 receiving the Quality Improvement Achievement Award.  Hospitals were presented with their awards in a formal ceremony in Austin on August 27, 2009, with 181 hospital professionals attending. In addition to postings on the TMF website, award recipients were recognized in the media over 90 times, with stories being picked up by major Texas dailies such as the Houston Chronicle, San Antonio Express-News and Dallas Morning News. Trade publications covering the awards included Texas Medicine, Texas Family Physician and the Texas DO, as well as newsletters for the Texas Hospital Association, Texas Organization of Rural and Community Hospitals (TORCH) and the Texas Association for Healthcare Quality. Online publications also covered the awards. These included Yahoo Financial News, NewsRx, Nurse.com, and News-Journal.com among others. This year’s award program will again has criteria specific to Critical Access Hospitals. Critical Access Hospitals enrolled in the award program are working on improving care related to heart failure and pneumonia. For Inpatient Prospective Payment System (IPPS) acute care hospitals, the award program is again based on improving care related to acute myocardial infarction, heart failure, pneumonia and the surgical care improvement project (SCIP). 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

37 Quality Texas Foundation Nineteen 2011 Awards [* Highest Award]
Business Name Category* Baylor Medical Center at Irving Texas Award for Performance Excellence* City of Irving Cook’s Children Healthcare Systems Mesquite Independent School District Weatherford Independent School District Alamo Colleges Achievement Level Baylor Heart and Vascular Center, LLP Hill County Memorial Medical Center of Louisville St. Philip’s College 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

38 QualityTexas Foundation 2011 Awards
Business Name Category Baylor All Saints Medical Center Progress Level Methodist Health Systems Texas Department of Licensing and Regulation Goodwill Industries of Central Texas Commitment Level Keller Independent School District Medical Center Health System Ector County Hospital District Texas Property and Casualty Insurance Guaranty Association Texas Board of Professional Engineers Engagement Level Workforce Solutions for North Central Texas 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

39 Utah Quality Awards 2001 Varian Medical Systems City of Salt Lake
9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

40 European Foundation for Quality Management (EFQM) Award
EFQM is a non‐profit foundation, based in Brussels, Belgium. It was formed in 1988 by a group of leading European organisations. They are the custodians of the EFQM Excellence Model. Together with European partners, there are 30,000 member organisations. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

41 EFQM Excellent organisations achieve and sustain superior levels of
performance that meet or exceed the expectations of all their stakeholders. To achieve sustainable success, EFQM provides guidance through a set of three integrated components: The EFQM Excellence Model The Fundamental Concepts of Excellence RADAR logic 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

42 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

43 Fundamental concepts of excellence
Definition 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

44 Fundamental concepts of excellence
Definition 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

45 Fundamental concepts of excellence
Definition 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

46 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

47 EFQM Weighting Enablers Results Leadership (10%) People (10%)
Processes, products and services(10%) People Results (10%) Key Results (15%) Strategy (10%) Customer results (15%) Partnership & resources (10%) Society results (10%) Learning, creativity and innovation The EFQM Excellence Model Criteria contains five enabling categories and four results categories. Similar to Baldrige they are weighted in a manner showing balance between the approaches and the results categories. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

48 The EFQM Award Process Qualification Application
Application assessment Site visit assessment Jury selects finalists Jury selects best performers If applicant is really outstanding the jury declares them as the award winner 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

49 Award Levels Commited to Excellence is the beginning Award
Recognized for Excellence is the next level awarded to those well on their way to organizational excellence In 2006: 5, 4 and 3 star recognition was started based on more than 500, 400 and 300 point assignments, respectively The EFQM Excellence Award is the highest level of award 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

50 Year No. of EFQM Finalists No. of EFQM Prize Winners No. of EFQM Award Winners 1992 3 1 1993 2 1994 1995 1996 1997 4 1998 10 7 1999 18 5 2000 11 8 2001 14 2002 9 6 2003 2004 2005 2006 2007 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

51 EFQM Awards by Country 1992 to 2007
9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

52 The Deming Prize The Deming Prize was established by the
Japanese Union of Scientists and Engineers (JUSE) in 1951 in honor of his contributions to statistical quality control in Japan after WWII. There are four categories of recognition: The Deming Prize for individuals The Deming Distinguished Service Award for Dissemination and Promotion (overseas) by an individual The Deming Application Prize for organizations The Quality Control Award for Operations Business Units of an organization 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

53 Deming Prize Originally it was designed to recognize Japanese organization for major advances in quality improvement Today it is available to non-Japanese organizations and individuals who have made major contributions to the advancement of quality The Deming Prize committee conducts the examination and awards the prizes 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

54 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

55 Other Quality Awards GEM Global Excellence Model Council
Made up of chief executives of several national quality award programs Members include: Australian Business Excellence Awards EFQM Excellence Awards (Europe) Ibero-American Excellence Award (Brazil, Mexico, Spain, et.al.) CII-EXIM Bank Award for Business Excellence (India) Japan Quality Award Singapore Quality Award MBNQA (U.S.) 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

56 GEM Mission Maintain a leading edge position on Excellence models
Senses business trends and external factors that impact Excellence Awards Explores opportunities for new products and activities Coordinates and shares specific award activities 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

57 FUNDIBEQ Ibero-American Foundation for Quality Management (March 1998)
Promotes the Ibero-American Excellence Model for Management (IEM) Sponsors the Ibero-American Quality Award Facilitates opportunities to “take a big step towards greater and more compact competitiveness”. Partners include: Argentina, Brazil, Chile, Columbia, Cuba, Dominican Republic, Ecuador, Mexico, Paraguay, Peru, Portugal, Spain, Uruguay, and Venezuela. 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

58 State and Quality Awards
Year Alabama 1980 Maryland New Mexico Nevada Virginia Wyoming 1986 Connecticut 1987 Delaware 1992 Florida Maine Massachusetts Minnesota New York N. Carolina Award Year Arkansas 1997 Arizona California Georgia Idaho Iowa Illinois Kansas Kentucky Louisiana Michigan Missouri Mississippi Nebraska Award Year New Hampshire 1997 New Jersey Oklahoma Oregon Rhode Island S. Carolina Texas Utah Vermont Washington Wisconsin Indiana Ohio, Colorado 2000 Pennsylvania, Alaska 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

59 Newsflash The benefit of state award programs is that from 1996 to 2009, 41 of the 55 Baldrige Award recipients were also state award recipients The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) provides accreditation services to hospitals and other health care services Providers have found that participation in Baldrige programs has enhanced their standing and ability to maintain Joint Commission accreditation 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

60 Local and Regional Awards
Year Memphis, Tennessee 1997 Austin, Texas Lancaster, Pennsylvania Pittsburgh, Pennsylvania Philadelphia, Pennsylvania Houston, Texas Western Texas Cincinnati, Ohio Dayton, Ohio Colorado Springs, Colorado Rocky Mountain Quality Award, Denver, Colorado 1980 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

61 Some more local and regional award programs as of 2010
Pioneer Valley Business Excellence Award of the Affiliated Chambers of Commerce of Greater Springfield, Massachusetts Organizations of Noteworthy Excellence (ONE) Awards, a local program for nonprofits in Cincinnati, Ohio Memphis Regional Chamber Quality Cup Award, a regional award program sponsored by the Mid-South Quality Productivity Center in Tennessee Performance Excellence Association of Mid-South-PerF, a local award program for large and small businesses and organizations in the Greater Memphis and tristate areas of Tennessee University of Texas Center for Performance Excellence Program, a regional award program in Texas Connecticut Award for Excellence (CAFE) 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

62 International Awards Country/Region Award Name Year Founded
Website Address Australia Australian Business Excellence Awards 1998 Canada Canada Awards for Excellence 1992 China National Quality Award 2001 Egypt The National Awards for Excellence 2005 Europe EFQM Excellence Award 1988 Hungary National Quality Prize 1996 None Ibero-American Ibero-American Excellence Award 2000 India CII-EXIM Bank Award for Business Excellence 1994 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

63 International Awards (cont’d.)
Country/Region Award Name Year Founded Website Address India Rajiv Gandhi National Quality Award 1991 Jamaica National Quality Award Japan Deming Prize 1951 Japan Quality Award 1995 Romania Joseph M. Juran Romanian Quality Award 2000 None Singapore Singapore Quality Award 1994 Sri Lanka Sri Lanka National Quality Award U.S. MBNQA 1987 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston

64 Questions and Answers 9/20/2018 *Juran’s Quality Handbook, Sixth Edition-Chapter 17 (2010) James Er Ralston


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