Malcolm Baldrige National Quality Award - A Model for Performance Excellence

© Operational Excellence Consulting. All rights reserved.
Malcolm Baldrige
National Quality
Award
A Model for Performance Excellence

4
Contents
• Overview of the Baldrige Award
• Baldrige Criteria for Performance Excellence
• Award Criteria Point Values
• Scoring Guidelines
• Baldrige Assessment Process
• Baldrige Site Visit
• Baldrige Award Recipients
• (Your organization’s performance and alignment plan)
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What is the Purpose of the Malcolm
Baldrige National Quality Award?
• Identify organizations that will
serve as role models for other
organizations
• Help organizations assess
their improvement efforts
• Help to strengthen U.S.
competitiveness
Overview of Baldrige Award

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Who Can Apply for the Malcolm
Baldrige National Quality Award?
• The award is open to organizations in the
following sectors:
Manufacturing
Service
Small business
Education
Healthcare
Non-profit

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Core Values & Concepts
• The Criteria are built on the following set of
interrelated core values and concepts:
visionary leadership
customer-driven excellence
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

© Operational Excellence Consulting. All rights reserved. 16
From Good to Great…
“Greatness is not a
function of circumstance.
Greatness is largely a
matter of conscious choice,
and discipline.”
—Jim Collins, author of Good to
Great: Why Some Companies Make
the Leap. . . and Others Don’t

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Category 1 – Leadership
• Examines how organization’s
senior leaders’ personal actions
guide and sustain the
organization
• Examines the organization’s
governance system
• Examines how organization
fulfills its legal, ethical, and
societal responsibilities and
supports its key communities
Baldrige Criteria for Performance Excellence

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Category 4 – Measurement, analysis,
and Knowledge of Management
• Identifies how organization
gathers, assesses, and
implements data
Includes: financial, process,
operation measures, etc.
• How organization manages
information to improve
performance

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Category 7 – Results
• Describes how results are
documented and used to improve
the organization
• How results focus on customer
satisfaction
• Summarizes how results are used
efficiently
• Examines how performance
measures compare to competitors

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Point Values for the Seven Key
Areas of Evaluation
Category Point Values
1 Leadership 120
2 Strategic Planning 85
3 Customer Focus 85
4
Measurement, Analysis &
Knowledge Management
90
5 Workforce Focus 85
6 Operations Focus 85
7 Results 450
Award Criteria Point Values

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Process Scoring Guidelines
• Scoring Bands
0-5%
10-25%
30-45%
50-65%
70-85%
90-100%
• Notations
A = Approach
D = Deployment
L = Learning
I = Integration
Scoring Guidelines

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SCORE PROCESS (for use with categories 1–6)
30%, 35%,
40%, or
45%
■ An effective, systematic approach, responsive to the basic
requirements of the item, is evident. (A)
■ The approach is deployed, although some areas or work
units are in early stages of deployment. (D)
■ The beginning of a systematic approach to evaluation and
improvement of key processes is evident. (L)
■ The approach is in the early stages of alignment with your
basic organizational needs identified in response to the
Organizational Profile and other process items. (I)
Scoring Guidelines

37
SCORE PROCESS (for use with categories 1–6)
90%, 95%,
or 100%
■ An effective, systematic approach, fully responsive to the
multiple requirements of the item, is evident. (A)
■ The approach is fully deployed without significant
weaknesses or gaps in any areas or work units. (D)
■ Fact-based, systematic evaluation and improvement and
organizational learning through innovation are key
organization-wide tools; refinement and innovation, backed by
analysis and sharing, are evident throughout the organization.
(L)
■ The approach is well integrated with your current and future
organizational needs identified in response to the
Organizational Profile and other process items. (I)
Scoring Guidelines

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Results Scoring Guidelines
SCORE RESULTS (for use with category 7)
0% or 5% ■ There are no organizational performance results and/or
poor results in areas reported. (Le)
■ Trend data either are not reported or show mainly adverse
trends. (T)
■ Comparative information is not reported. (C)
■ Results are not reported for any areas of importance to the
accomplishment of your organization’s mission. (I)
Scoring Guidelines

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Results Scoring Guidelines
SCORE RESULTS (for use with category 7)
50%, 55%,
60%, or
65%
■ Good organizational performance levels are reported,
responsive to the overall requirements of the item. (Le)
■ Beneficial trends are evident in areas of importance to the
accomplishment of your organization’s mission. (T)
■ Some current performance levels have been evaluated
against relevant comparisons and/or benchmarks and show
areas of good relative performance. (C)
■ Organizational performance results are reported for most
key customer, market, and process requirements. (I)
Scoring Guidelines

Baldrige Assessment Process

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Objective of the Site Visit
• Verify and Clarify
Appropriateness and effectiveness of
the Approach
Extent of Deployment
Integration of Approach into the
business plan
Breadth and depth of Results
Cycles of improvement
Additional Results achieved during
the interim period
Clarification of report
Baldrige Site Visit

Baldrige Award Recipients

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• Healthcare
Henry Ford Health System, Detroit, MI (2011)
Schneck Medical Center, Seymour, IN (2011)
Advocate Good Samaritan Hospital, Downers Grove,
IL (2010)
AtlantiCare, Egg Harbor Township, NJ (2009)
Poudre Valley Health System, Fort Collins, CO (2008)

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• Small Business
Freese and Nichols Inc., Fort Worth, TX (2010)
MidwayUSA, Columbia, MO (2009)
PRO-TEC Coating Co., Leipsic, OH (2007)
MESA Products, Inc., Tulsa, OK (2006)
Park Place Lexus, Plano, TX (2005)
Texas Nameplate Company, Inc., Dallas, TX (2004)

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Your organization performance trend
• Explain your organization’s objective of adopting
the Baldrige framework
• Insert your organization’s trend performance
against the seven criteria
Overall trend performance at organizational level
Performance trend for each criteria

Appendix

70
American Society for Quality (ASQ)
• Assists in administering the award program
under contract to NIST
• Supported grassroots efforts in expanding the
Baldrige Award in health care, education, and
nonprofit categories
• Supports the Baldrige Program through
campaigns to raise awareness of federal funding
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73
Alliance for Performance Excellence
• Is a non-profit national network which aims to enhance
the success and sustainability of its member Baldrige-
based programs
• Alliance’s member organizations:
promote the use of the Baldrige Criteria
disseminate information on the Baldrige program
serve as a feeder system for the national program - providing
examiners and award applicants
network with the Baldrige Performance Excellence Program and
each other
receive and use the Baldrige Criteria and other program and
training materials from the national program

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Malcolm Baldrige National Quality Award - A Model for Performance Excellence

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Malcolm Baldrige National Quality Award - A Model for Performance Excellence