Baldrige National Quality Program

1. Baldrige National Quality Program Information and Analysis:The Foundation for Performance ExcellenceHarry S. HertzDAMA - NCR MeetingMarch 13, 2001

2. Outline • Baldrige Performance Excellence • The Role of Information and Analysis • Self-Assessment • Role Model Characteristics • Future Challenges

3. Performance Excellence An aligned approach to organizational performance management that results in: • delivering ever-improving value to customers, resulting in marketplace success • improving organizational effectiveness and capabilities • organizational and personal learning

4. “The society which scorns excellence in plumbing as a humble activity and tolerates shoddiness in philosophy because it is an exalted activity will have neither good plumbing nor good philosophy…neither its pipes nor its theories will hold water.” John W. Gardner

5. Criteria for Performance Excellence • An assessment tool • Seven Category integrated framework • Updated regularly

7. Category Point Values (2001) 120 1 Leadership 125 2 Strategic Planning 85 3 Customer and Market Focus 85 4 Information and Analysis 85 5 Human Resource Focus 85 6 Process Management 85 7 Business Results 450 90

8. 4.1 Measurement and Analysis of Organizational Performance 4.2 Information Management Information and Analysis(2001) • ` • Performance Management • Performance Analysis • Data Availability • Hardware and Software Quality

9. Why Self-Assess? Drivers • Customers/competitors drive need to change • Industry in state of flux • Maintain leadership position • Keep business healthy

10. Why Self-Assess? Benefits • Jump start a change initiative. • Energize existing improvement initiatives. • Focus the organization on common goals. • Align improvement efforts.

11. 1. ID organizational boundaries. 2. Decide on format. 3. Write Organizational Profile. 4. Select 7 champions. 5. Practice process with Item 1.1. 6. Complete other Items. 7. Share responses/ finalize findings. 8. Determine +’s and OFIs. 9. Develop/implement action plan. 10. Evaluate/improve process. 10-Step Plan for Self-Assessment and Action

12. Step 1 - Define the Organization • Purpose: Ensure “doable” improvements and consistent data collection. • Process: Determine breadth of inquiry. Indicate on org. chart.

13. Step 2 - Decide on Format • Purpose: Clarify expectations and resources. • Process: Determine if oral/written and what steps to use.

14. Step 3 - Write Organizational Profile • Purpose: Describe what is relevant and important; ensure common understanding; guide selection of info/data. • Process: Review directions. • Draft response. • Reach consensus. • Finalize.

15. Step 3 - Write Profile (Cont’d.) • Basic description of the organization • - Organizational Environment • - Organizational Relationships • - Competitive Situation • - Strategic Challenges • - Performance Improvement System

16. regulatory environment customer groups/market segments suppliers/dealers and relationships products/services organizational context/culture employees/staff - ed. level, diversity, bargaining units, contracts, safety requirements equipment, facilities, technologies used Step 3: Write Profile (Cont’d.)Basic Description

17. Step 3: Write Profile (Cont’d.) Competitive Situation and Strategic Challenges • Numbers/types of competitors and key collaborators • Position (relative size/growth) in your sector • Principal factors determining competitive success • Changes affecting competition

18. Step 3: Write Profile (Cont’d.) Performance Improvement System • Approach to systematic evaluation and improvement • Organizational learning and knowledge sharing

19. Stimulating Quality Improvement Stimulating Competitiveness Improvement Extremely/Very Valuable (%) 79 67 Value of Baldrige to U.S. Business

20. Stock Study Results

21. Role Model Behavior • Effective, systematic approach • Well deployed • Evaluation, improvement, and learning in place • Alignment across Categories and with organizational needs

23. Baldrige Role Model Characteristics • Visionary Leadership Guidance (1.1) • Focused on Customer Satisfaction and Relationships (3.2) • High Performance Work Systems (5.1) • Focused on Employee Education/Development (5.2) • Customer and Market Knowledge (3.1) • Process Driven -- Manufacturing and Service (6.1) • Strong Financial and Market Results (7.2)

24. “The task of the leader is to get people from where they are to where they have not been.” Henry Kissinger

25. Greatest ImprovementsAward Recipients vs. Stage 1 • Human Resource Results (7.3) • Customer Focused Results (7.1) • Organizational Effectiveness Results (7.5) • Financial and Market Results (7.2) • Visionary Leadership Guidance (1.1) • Focus on Customer Satisfaction and Relationships (3.2)

26. Needs Greatest ImprovementsStage 1 Applicants • Supplier and Partner Results (7.4) • Human Resource Results (7.3) • Organizational Effectiveness Results (7.5)

27. The slippery slope of performance!

28. The Results Imperatives • Tied to Business and Customer Requirements • Tied to Key Processes • Tied to Strategy and Action Plans • Track Levels and Trends • Linked to Company-Level Information and Analyses • Actionable!

29. 1999 Lessons Learned Common Themes • Senior leadership commitment is required • Strategic planning ties all of the criteria together • Use multiple, different customer listening posts • Use data selectively, segment, analyze, act • Involved and empowered employees are motivated • All work is a process • Build your system to last