Fast Track Methods to Baldrige- Based Organizational Assessments

Fast Track Methods to Baldrige-Based Organizational Assessments Performance Improvement NetworkJanuary 8, 2004Dr. Karen Hawley, Owner, Hillswick GroupBrian S. Lassiter, President, Minnesota Council for Quality

Today’s Objectives • Provide a basic overview of Baldrige • Outline a “typical” organizational assessment process • Discuss two “short-cut” approaches for assessment • Kick StartTM • “Baldrige Express”

Mission Vision Mission Vision Alignment Baldrige Assessment Focusing Energy & Resources

Baldrige Assessment Objectives • Identifies strengths and improvement opportunities • Facilitates improvement, alignment, and integration • Assists in delivery of value to stakeholders • Facilitates organizational and personal learning • Monitors progress over time

First, the Evidence… Source: Kevin B. Hendricks and Vinod R. Singhal, “Don’t Count TQM Out,” Quality Progress, April 1999

…First, the Evidence… Source: Q100 Index, Robinson Capital Management

Drivers Core Work Results Strategic Planning Human Resource Focus Leadership Results Process Management Customer and Market Focus Measurement, Analysis, and Knowledge Management The Baldrige Framework

Criteria for Performance Excellence 3.1 Customer and Market Knowledge (40 points) Describe how your organization determines short- and longer-term requirements, expectations, and preferences of customers and markets to ensure the relevance of current products/services and to develop new opportunities. Within your response, include answers to the following questions: Approach-Deployment SAMPLE a. Customer and Market Knowledge How do you determine or target customers, customer groups, and/or market segments? How do you consider customers of competitors and other potential customers and/or markets in this determination? How do you listen and learn to determine key requirements and drivers of purchase decisions for current, former, and potential customers? If determination methods differ for different customers and/or customer groups, include key differences. How do you determine and/or project key product/service features and their relative importance/value to customers for purposes of current and future marketing, product planning, and other business developments, as appropriate? How do you use relevant information from current and former customers, including marketing and sales information, customer retention, won/lost analysis, and complaints, in this determination? How do you keep your listening and learning methods current with business needs and directions? (1) (2) (3) (4)

The Criteria/Framework are Flexible • Is based on a set of validated, leading edge practices • Is applicable to any organizational entity • Is scaleable • Encourages communication and knowledge sharing

Category 2 -- Strategic Planning 2.1 Strategy Development 6 7 Gemini develops strategic plans for improving its health services and business performance results through a three-phase Strategic Planning Process. The key players involved in the Strategic Planning Process span the entire organization and include representatives from the GBOD as well as front-line staff. Input is also gathered from other staff, suppliers, and strategic partners (University of Lakeland Hospital, Healing Hands) for inclusion in the environmental assessment. This approach provides Gemini with a representative cross-section of all facets of the organization and, when combined with input from customer survey results, mystery shopping or competitive shopping, and market-related analysis of competitors and trends, provides the LT with the initial framework for the strategic planning retreat. The Strategic Planning Process is an ongoing process with three distinct phases that are all illustrated in Figure 2.1-1. Evaluation and improvement of the Strategic Planning Process begin immediately upon completion of the annual plan. This Phase 1, the pre-planning phase, which begins in January with an evaluation of the previous year’s Strategic Planning Process and suggests/implements recommendations for improving the process. Up until this year, Gemini has only used the percent deviation between actual and budgeted expenses to monitor its progress toward achieving strategic goals. Typical results are within 5% to 10% of plan. A recommended improvement from last year was to include measures that will add value by increasing the accuracy and effectiveness of the planning process or by improving cycle time. Metrics will be incorporated that assess participant contributions, and evaluate adherence to timeliness and the level of agreement on the financial projections in the 1998 planning process. Another improvement included the involvement of John Adams, a key physician from the University of Lakeland Hospital’s cardiac program, in Gemini’s planning process to ensure that clinical issues are addressed. 2.1a(1,2) The external and internal analysis is included in what Gemini refers to as Phase II of the Strategic Planning Process. This phase looks at external opportunities and threats as well as internal strengths and weaknesses. Figure 2.1-1 Strategic Planning Process Phase When What Who Evaluate previous yr’s process/ID improvements GBOD LT/Director of Planning Phase I -- Pre-Planning January • Meet customers, network, external mtgs., distrib. Quality/JCAHO info • Perform compet. analysis • Conduct survey/focus grps. LT MCO Consultant Supplier reps • Phase II -- Environmental • Analysis • External • Internal 4 Biannually Annually • Review results • Review results vs plan • SWOT analysis Branch managers LT/GBOD Planning Teams Ongoing Quarterly Annually Planning retreat: risk analysis, partner capabil’s; draft initial plan LT, Planning Team Phase III -- Strategic Plan Development September • Staff Feedback • Deployment Review/update plan; devlp forecasts/resource/ budget Branch mgrs, Segment Specialists October Review/modify budget; follow-up retreat (if nec.) LT, Planning Team November Approve budget; communicate to staff GBOD, all staff December Conduct Site Visit Review Independently Reach Consensus Prepare Assessing Performance with the Criteria Plan & Take Action

Short Cut #1: Baldrige Kick Start™ • Grounds teams in their organization vs. a fictional case right away • Gets teams started quickly • Establishes a database that can be continuously refreshed to reflect improvement  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Three Basic Baldrige Questions  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Responding to Baldrige Questions  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Baldrige Criteria Language for Approach/Deployment 1.1b(1) How do senior leaders review organizational performance and capabilities to assess organizational success, competitive performance, progress relative to short-and longer-term goals, and the ability to address changing organizational needs? Include the key performance measures regularly reviewed by your senior leaders. Also, include your key recent performance review findings.  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Simplified Criteria Language What is the process for…? • Reviewing performance List: • key performance review measures • recent performance review findings  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Baldrige Criteria Language for Results 7.1a(1) What are your current levels and trends in key measures/indicators of customer satisfaction and dissatisfaction, including comparisons with competitors’ levels of customer satisfaction?  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Simplified Criteria Language What are your current levels of performance…? What are your performance trends…? What are your comparative/competitive results for …? • Customer satisfaction measures • Customer dissatisfaction measures  2004 Brennan Hawley International/ Hillswick Group, Ltd.

If process, then think of…  2004 Brennan Hawley International/ Hillswick Group, Ltd.

If list, then think of…  2004 Brennan Hawley International/ Hillswick Group, Ltd.

If results, then think of…  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Kick Start tool • Needed a simple translation of the Baldrige criteria to accelerate development of an application • Wanted to prevent organizations from having to repeatedly simplify the criteria themselves  2004 Brennan Hawley International/ Hillswick Group, Ltd.

What is ADCR? ADCR is a tool and format that provides: • Evidence • Current State • Database ADCR is an acronym for Approach, Deployment, Cycles of Refinement, and Results  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Types of Evidence • Description of approach • Systematic nature of approaches • Maturity of approaches • Depth of deployment across organization • Degree of fact-based evaluation and improvement • Linkage between approaches and results  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Approach Evidence • Name of process • Purpose/goal • Alignment to vision/goals/values • Integration with other processes • Key steps • Input • Process Steps • Output  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Deployment Evidence • Process management • Function/group administering process • Process maturity • Date process initially implemented • Depth of deployment • Locations where process occurs in organization • Types/levels of employees involved in process • Frequency  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Cycles of Refinement Evidence • Date(s) of improvements • Description of improvement(s) • Evidence of fact-based evaluation and improvement process  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Results Evidence • Performance measure used to evaluate effectiveness or efficiency of process • Current results • Trend results • Comparative and/or competitive results  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Benefits of Using ADCR • Consistency in gathering and organizing evidence • Means (database) for updating evidence • Provides clear tie to Criteria and Scoring Guidelines • Simplicity • Speed  2004 Brennan Hawley International/ Hillswick Group, Ltd.

Short Cut #2: “Baldrige Express” • The “traditional” narrative-based approach (again): • The survey-based Baldrige Express approach: Conduct Site Visit Prepare Narrative Review Independently Reach Consensus Plan & Take Action Conduct Site Visit Prepare Inputs Review Independently Reach Consensus Plan & Take Action • Organization Profile • Survey • Organization Performance Results

SAMPLE Input 1: Organizational Profile Organization Profile Organizational Description a) Organization Environment • What are your organization’s main products and/or services? • What is your organizational context and culture? • What is your employee profile? • What are your major technologies, equipment, and facilities? • What is the regulatory environment under which your organization operates? b) Organizational Relationships • What are your key customer groups and/or market segments? • What are you most important types of suppliers/dealers? Organizational Challenges a) Competitive Environment • What is your competitive position? • What are the principal factors that determine your success relative to your competitors? b) Strategic Challenges • What are your key strategic challenges? c) Performance Improvement System • How do you maintain an organizational focus on performance improvement?

Input 2: Survey (Demographics Page) Each different demographic attribute will appear on separate pages. Participants select the demographic value that describes their position within the organization.

Click the radio button that best describes the level of development in your organization. Mouse over the levels to view the descriptors of each level. Approach and Deployment comments are requested for each question. Participants offer suggestions for improvement on the process. SAMPLE Input 2: Survey (Sample Question)

SAMPLE Input 3: Organization Performance Results

Ways to Learn More • Visit the Council’s improvement Clearinghouse (www.councilforquality.org) • Attend Quest for Excellence and/or other Baldrige-focused conferences • Consider becoming an Evaluator with the Minnesota Quality Award • Network with other leaders who use the Criteria, including those who use these “Fast Track” tools

About the Speakers Dr. Karen Hawley is an independent consultant, and owner of Hillswick Group, Ltd, a management consulting firm specializing in performance improvement. Karen has extensive experience with the Baldrige (senior examiner, trainer, case evaluator) and Minnesota Quality Award processes (examiner, judge, and trainer). Karen is a graduate of the University of Minnesota Carlson School of Management with graduate degrees in management and an undergraduate degree in electrical engineering. She was with Honeywell for 15 years and served as quality director for Honeywell’s largest business unit. She has been consulting in manufacturing, service, small business and education for the past ten years. Karen can be reached at hillswick@aol.com or 763-425-9501.

About the Speakers Brian Lassiter was elected president of the Minnesota Council for Quality in the summer of 2001. Before his election, Brian held positions with the following organizations: Ian Alliott Consulting (Managing Director), Norstan Consulting (Principal Consultant), The St. Paul Companies (Corporate Quality Consultant), Price Waterhouse (Consultant), and Boatmen's National Bank (Quality Manager). In these roles, Brian has worked with dozens of organizations in a variety of industries to help them improve their performance and competitiveness. Brian has served six years on the Board of Examiners for the Malcolm Baldrige National Quality Award (1998-2003), the last three as a Senior Examiner. He has also served as a Senior Evaluator for the Minnesota Quality Award (two years) and served on the Board of Directors for Goodwill/Easter Seals of Minnesota between 1995-2003.He can be reached at lassiter_brian@hotmail.com or 612-868-3519 (cell). Founded in 1987, the Minnesota Council for Quality is a 501 (c)(3) non-profit that helps organizations improve performance, results, and/or competitiveness. For more information, please visit www.councilforquailty.org or contact the Council at mc4quality@aol.com.

Fast Track Methods to Baldrige- Based Organizational Assessments