This presentation by Kevin McManus at the 2015 TapRooT® Summit provides an overview of the Baldrige Performance Excellence process. Send me a IM if you want more details. Keep improving!

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2015,
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Systems,
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Kevin
McManus
Chief
Excellence
Officer
Great
Systems
www.greatsystems.com
Strategies for Assessing Your Progress
Towards Performance Excellence
How Good are You?
Title Slide
Systems
Culture
Behaviors
BeliefsR

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What
is
Process
Excellence?
Minimal waste, consistent improvement, best in class at
meeting or exceeding customer expectations
HOW do you know if you are making progress?
WHAT is process excellence?
HOW do you achieve it?
Define and build process excellence into EVERY
employee’s daily job
1. Sustained improvement over time (3-5 years)
2. Sustained improvement in all areas of importance
3. Nearing or at ‘best in class’ levels

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Performance
Excellence
and
TapRooT®
Effective Use of Audits (PCFs)
Daily Error & Defect Reduction
32 NI Best Practice Spectrums
REACTIVE
PROACTIVE
Investigation Process
RCA Process
CA Implementation Process
Process
Excellence
How do we find our causal factors?

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Why
Can’t
We
Go
Faster?
We ask our people to drive faster, but we leave
the restrictor plates on at the same time.
Faulty work systems are similar to restrictor
plates on NASCAR vehicles
If we want to go faster (higher levels of
performance), we have to take the plates off.

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Three
Key
PE
Restrictors
You can’t spend time on process improvement if you
are spending time bringing new people up to speed
Little time exists for process improvement
Employee turnover rates are high
Span of control ratios are too large
Spans of control have gotten very out of
control in many, if not most organizations
You can’t go to the bank and take out a ‘time loan’ and
most people aren’t going to spend more time on the job

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What’s
Holding
Us
Back?
We don’t use our process
improvement tools
We only engage a small
percentage of our people
We have not learned from the past
We don’t see all work as a process
We can’t find time for
improvement
% of Workforce Engaged
%ofProcessesDMAI’d
High
Performance
Workplace
Traditional
Workplace
Efficient
Workplace
Engaged
Workplace
LOW
HIGH
HIGH

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Every process owner should be
responsible for tracking and trending
process performance and process waste
on a regular basis, and for using that
information to improve those processes.
The
Key
to
Sustaining
Process
Excellence

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Why
Won’t
They
Change?
What is the fastest and
easiest way to change
human behavior?
Change the system!

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300
400
500
600
700
800
900
1,000
2012
2013
2014
2015
2016
The
Key
QuesZon!
Is
a
high
Baldrige
score
an
indicator
of
performance
excellence?

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Why
I
Believe
in
Baldrige
Results
account
for
45%
of
the
total
possible
points
The
stock
performance
of
past
NaZonal
Baldrige
Award
recipients
The
NaZonal
Baldrige
Performance
Excellence
Program
pracZces
what
it
preaches!
The
criteria
are
based
on
11
powerful
core
values
You
determine
what
is
important
–
measures,
strategies,
markets,
and
stakeholders
The
beauty
of
the
scoring
guidelines

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A
PerspecZve
Shib
With
Baldrige,
a
50%
score
is
a
sign
of
success,
not
failure!

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A
Closer
Look
at
Baldrige
Quality Award Process
Criteria Design Scoring Guidelines
Approach / Deployment
Results
11 Core Values
Point Mix %
7 Categories - 17 Items
What and How Questions
Key Factor-based
Does it exist?
Well deployed?
Improved?
Integrated?
Levels and
Trends?
Integrated?
Comparisons?
Key areas?

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Baldrige
Core
Values
Visionary leadership
Valuing employees and
partners
Customer-driven
excellence
Organizational and
personal learning
Focus on the future
Agility
Managing for innovation
Focus on results and
creating value
Management by fact
Social responsibility
Systems perspective
Source:
2015-­‐2016
Baldrige
Excellence
Framework
”,
NIST,
2015

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Steps
Toward
Mature
Processes

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Five
Key
Concepts
Systems give you what they
are designed to give you
Systems shape culture
All work is a process
People make the difference
All processes produce results

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From
ReacZve
to
ProacZve
–
Baldrige
Style
Source:
2015-­‐2016
Baldrige
Excellence
Framework
”,
NIST,
2015

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2015-­‐16
Baldrige
Criteria
Scoring
1
Leadership
2
Strategic
Planning
3
Customer
Focus
4
Measurement,
Analysis,
&
Knowledge
Management
5
Workforce
Focus
6
OperaZons
Focus
7
Results
120
85
85
90
85
85
450
Source:
2015-­‐2016
Baldrige
Excellence
Framework
”,
NIST,
2015

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Twelve
Basic
Process
Requirements
How do your senior leaders lead
the organization?
How do you obtain information from your
customers?
How do you govern your organization and
fulfill your societal responsibilities?
How do you develop your strategy?
How do you engage customers by serving
their needs and building relationships?
How do you implement your strategy?
Customers
Strategy
Leadership
Source:
2015-­‐2016
Baldrige
Excellence
Framework
”,
NIST,
2015

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Twelve
Basic
Process
Requirements
(cont.)
How do you measure, analyze, and
improve organizational performance?
How do you manage your organizational knowledge
assets, information, information technology
infrastructure?
How do you design, manage, and improve
your key products and work processes?
How do you engage your workforce to achieve
a high-performance work environment?
How do you build an effective and supportive
workforce environment?
How do you ensure effective management of
your operations?
Operations
Workforce
Measurement,
Analysis, and
Knowledge
Management
Source:
2015-­‐2016
Baldrige
Excellence
Framework
”,
NIST,
2015

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How
Do
Your
Leaders
Lead?
Our
workforce
knows
our
organizaZon’s
mission
(what
we
are
trying
to
accomplish)?
SD
D
AD
A
SA
Our
leadership
team
creates
a
work
environment
that
helps
our
employees
do
their
jobs.
Our
workforce
knows
our
organizaZon’s
vision
(where
it
is
trying
to
go
in
the
future)?
Our
leadership
team
uses
our
organizaZon’s
values
to
guide
our
organizaZon
and
employees.
Our
leadership
team
shares
informaZon
about
the
organizaZon.
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
Our
leadership
team
asks
employees
what
they
think.
SD
D
AD
A
SA
Source:
“Are
We
Making
Progress
as
Leaders?”,
NIST,
2011

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How
Do
You
Plan?
As
our
leadership
team
plans
for
the
future,
we
ask
our
employees
for
their
ideas.
SD
D
AD
A
SA
Our
organizaZon
encourages
totally
new
ideas
(innovaZon).
Our
employees
know
the
parts
of
our
organizaZon’s
plans
that
will
affect
them
and
their
work.
Our
employees
know
how
to
tell
if
they
are
making
progress
on
their
work
group’s
part
of
the
plan.
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
Our
organizaZon
is
flexible
and
can
make
changes
quickly
when
needed.
SD
D
AD
A
SA
Source:
“Are
We
Making
Progress
as
Leaders?”,
NIST,
2011

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How
Do
You
Engage?
Our
employees
know
who
their
most
important
customers
are.
SD
D
AD
A
SA
Our
employees
regularly
ask
their
customers
what
they
need
and
want.
Our
employees
ask
if
their
customers
are
saZsfied
or
dissaZsfied
with
their
work.
Our
employees
are
allowed
to
make
decisions
to
solve
problems
for
their
customers.
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
Our
employees
also
know
who
our
organizaZon’s
most
important
customers
are.
SD
D
AD
A
SA
Source:
“Are
We
Making
Progress
as
Leaders?”,
NIST,
2011

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How
Do
You
Measure,
Analyze,
and
Share?
Our
employees
know
how
to
measure
the
quality
of
their
work.
SD
D
AD
A
SA
Our
employees
use
this
informaZon
to
make
changes
that
will
improve
their
work.
Our
employees
know
how
the
measures
they
use
in
their
work
fit
into
our
organizaZon’s
overall
measures
of
improvement.
Our
employees
get
all
the
informaZon
they
need
to
do
their
work.
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
Our
employees
know
how
our
organizaZon
as
a
whole
is
doing.
SD
D
AD
A
SA
Source:
“Are
We
Making
Progress
as
Leaders?”,
NIST,
2011

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How
Do
You
Work
and
Grow?
Our
employees
cooperate
and
work
as
a
team.
SD
D
AD
A
SA
Our
leadership
team
encourages
and
enables
our
employees
to
develop
their
job
skills
so
they
can
advance
in
their
careers.
Our
employees
are
recognized
for
their
work.
Our
managers
and
our
organizaZon
care
about
our
workforce.
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
Our
workforce
is
commiped
to
our
organizaZon’s
success.
SD
D
AD
A
SA
Our
organizaZon
has
a
safe
workplace.
SD
D
AD
A
SA
Source:
“Are
We
Making
Progress
as
Leaders?”,
NIST,
2011

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How
Do
You
Provide
Customer
Value?
Our
employees
can
get
everything
they
need
to
do
their
jobs.
SD
D
AD
A
SA
Our
organizaZon
has
good
processes
for
doing
its
work.
Our
employees
have
control
over
their
personal
work
processes.
Our
organizaZon
is
prepared
to
handle
an
emergency.
SD
D
AD
A
SA
SD
D
AD
A
SA
SD
D
AD
A
SA
Source:
“Are
We
Making
Progress
as
Leaders?”,
NIST,
2011

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2015-­‐16
Baldrige
Results
Points
7.2
Customer
Focused
Results
120
7.5
Financial
and
Market
Results
7.4
Leadership
and
Governance
Results
7.3
Workforce
Focused
Results
7.1
Product
and
Process
Results
80
80
80
90
Source:
2015-­‐2016
Baldrige
Excellence
Framework
”,
NIST,
2015

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How
Good
are
Your
Results?
Is
each
area
of
importance
measured?
Do
you
have
trend
data
for
each
of
your
key
measures?
Do
you
have‘best
in
class’ comparison
measures?
Does
your
segmented
data
show
consistent,
posiZve
trends?
Is
there
a
consistent,
posiZve
trend
over
3
to
5
years?
Do
you
know
your
key
measures?

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How
Good
are
These
Results?
Survey Response: Our leaders consistently support the mission of the hospital
80%
81%
82%
83%
84%
85%
86%
87%
88%
89%
90%
2003 2004 2005 2006 2007
System
Nursing
Physicians
Admin
PG Avg.
PercentThatAgreeorStronglyAgree

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Key
Work
System
Needed?
Have
It?
Use
It?
Improve
It
Design
and
Build
YES
NO
YES
NO
Use
and
Improve
Is
It
EffecAve
?
YESNO
Use
and
Improve
Want
It?
NO
YES
What
are
your
design
opAons?
What
are
your
Improvement
opAons?

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Example
Work
Systems
Leadership
Development
Outcome
Measurement
Complaint
ResoluZon
Strategic
Planning
MUST
Systems
Leader
CommunicaZon
Avenues
Customer
Listening
Posts
Best
PracZce
Sharing
In-­‐Process
Measurement
RelaZonship
Growth
Individual
Development
WANT
Systems
Community
Support
Technology
UZlizaZon
Planning
Hiring
process
Supplier
Management

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Example
Mature
System
DEFINE
ANALYZE
MEASUREIMPROVE
Leadership
Development
Process
Mission, Vision, and Values
High Performance Job
Description
Leadership
Index
Leadership
Curriculum
Scorecards
and
Dashboards
PersonalDevelopmentPlan
Belief and Behavior
Expectations
Customer
Listening Posts
Annotated
Trend Lines
Survey Feedback
Meetings
Community
Involvement
Process
Annual Survey
Results
CommunicationsPlan
Increase / Decrease
Objectives
Process
Improvement
Plans
Performance Review Process

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Measuring
Leader
Behavior
Which leaders should be measured with an index?
How long should we tolerate ‘poor performance’?
What minimum score should be considered acceptable?
1. Works with me to define the expectations of my job
2. Helps us find ways to do our jobs better
3. Is willing to spend time listening to my concerns
4. Lets me know when I have done a good job
5. Asks for my ideas about things affecting our work
6. Treats me with respect and dignity
7. Keeps me informed about things I need to know
8. Lets me do my job without interfering
9. Makes an effort to understand my point of view
10. Keeps favoritism from being a problem in our workgroup
11. Makes sure that continuous improvement is part of my daily job
My manager or supervisor …
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
SA A AD D SD
LI = 45%

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Improving
Your
Leadership
System
At Start
Formally define acceptable leadership practices
Second Cycle
First Cycle
Third Cycle
Use peer or 360 reviews as feedback tool
Create succession plan for all leadership levels
Install mentor process for leadership cross training
Provide feedback at annual reviews
Meet regularly to review performance and plan
Begin using bottom-up leadership index process
Link training events to leadership improvement

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Most
Baldrige-­‐based
training
has
its
roots
in
naZonal
Examiner
training
(applicaZon-­‐based)
Few
self
assessments
help
idenZfy
key
linkages
and
integraZon
between
systems
Few
self
assessments
properly
consider
the
affect
of
the
scoring
guidelines
and
key
factors
Most
self
assessments
focus
primarily
on
covering
the
criteria
Deployment
and
integraZon
are
difficult
to
assess
without
a
site
visit

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Self
Assessment
OpZons
IdenZfy
key
approaches
for
each
of
the
12
process
Items,
along
with
deployment,
refinement,
and
integraZon
examples
Use
the
“Are
We
Making
Progress
as
Leaders?” assessment
to
do
a
gap
analysis
Have
a
50
page
applicaZon
assessed
by
a
team
of
Examiners
Define
your
key
metrics
and
complete
5
results
scoring
matrices
Pick
a
scoring
band
and
jusZfy
why
you
did
not
go
higher

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High
Performance
Building
Codes
Each
key
process
has
its
own
balanced
scorecard
/
KPIs
A
plan
exists
for
using
new
technologies
Trend
lines
are
maintained
for
all
key
measures
All
process
owners
capture
key
process
counts,
raZos,
and
errors
daily
Safety,
quality,
cost,
and
people
‘gauges’
should
be
on
all
scorecards
All
work
teams
are
engaged
in
daily
process
review,
analysis,
and
improvement
Key
errors,
problems,
and
defects
are
captured
daily
and
crunched
weekly
Cross-­‐funcZonal
project
teams
are
consistently
used
to
drive
step
change
Leadership
behavior
should
be
measured
All
employees
benefit
from
some
form
of
profit
sharing

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Top
10
Places
to
Start
Define
your
leadership
team
Complete
the
five
secZons
of
the
OrganizaZonal
profile
Setup
a
spreadsheet
for
trending
your
key
measures
Define
3-­‐5
year
trends
and
comparisons
for
each
measure
IdenZfy
stakeholders
and
their
requirements
IdenZfy
customer
segments
and
their
requirements
Diagram
your
strategic
planning
process
Diagram
your
key
work
processes
/
systems
–
value
stream
map
Define
your
customer
/
stakeholder
listening
posts
Define
your
process
for
measuring
saZsfacZon
and
dissaZsfacZon
of
customers,
stakeholders,
and
associates

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Contact
InformaZon
E-mail: Kevin@greatsystems.com
Cell: 206.226.8913
Website: www.greatsystems.com
If you would like more information, please send me an e-mail
with a request specifying your needs.
Root Cause Analysis: www.taproot.com
Land: 503.556.0204
Skype: capkaizen