achieving performance excellence - mnasq.org 101_mnasq_02-12-13.… · achieving performance...

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Achieving Performance Excellence

Baldrige 101 WorkshopASQ Professional Development Summit

Today’s DiscussionIntroduce the Baldrige frameworkValue and Benefits of BaldrigegRegional Program – MN, ND & SDNational ProgramClass discussion and exercises on the Criteria for Performance ExcellenceExplore assessment options

2www.performanceexcellencenetwork.org

Testimonials from local organizationsOptions for next steps; additional resources

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Where Do You Start?

Improve HR selection

Improve compliance

Improve support processes

Improve reward & recognition

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Improve cycle time


Improve planning

Improve accuracy

Why Use Baldrige?Baldrige is a framework

Not regulatory; not accreditation (it’s flexible)System that any organization can choose to use (scalable)Criteria identifies what needs to be done, not explicitly how to do thingsRepresents “leading edge of validated management practice”

Self-evaluationR i h t lf i ti


Requires honest self-examinationHelps build a common language

Outside EvaluationState/regional program, National program

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Benefits of Using BaldrigeIdentifies strengths

foundation for continuous improvementp

Identifies improvement opportunitiespain or problem areas

Facilitates and guides improvement Promotes organizational alignment and integrationA i t i d li f l t t k h ld


Assists in delivery of value to stakeholdersFacilitates personal & organizational learningMonitors (measures) progress over time

…Economic Value Added to the US…2001 Study

207:1 economic return$25B in economic benefits at $119M in total cost

2011 Study820:1 in terms of economic returnCost savings, customer satisfaction, financial gain (rev)

Larry Potterfield, CEO, MidwayUSA (2009 recipient)– http://www.youtube.com/watch?v=zG8FjjctVhE&feature=plcp


Source: Albert N. Link and John T. Scott. NIST Planning Report 11-2: Economic Evaluation of the Baldrige Performance Excellence Program, December 2011

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The Baldrige AwardGiven by the President of the United States to:

businesses, manufacturing and service, small and large, g , geducation (K-12 and higher)health care organizationsnon-profits

Applicants judged to be outstanding in seven areasProgram objectives:

Share best management practices


Share best management practicesHelp organizations achieve world-class performance levelsIdentify and recognize role-model organizations

Baldrige (National) Facts93 Baldrige Award winners since 1987Number of applicants:Number of applicants:

Manufacturing – 354Service – 187Small business – 361Education – 151 (since 1999)Healthcare – 288 (since 1999)

40 out of 69 applicants in 2011 were healthcare


40 out of 69 applicants in 2011 were healthcareNon-profit – 47 (since 2006)Estimated number of state applicants – 10,279

there are 33 state quality award programs

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Language DifferencesBusiness, Health Care, & EducationCustomers, students and stakeholders, & patients and familiesProduct offerings, educational programs, health care servicesWork Processes

Product & process design BusinessProgram, service, and process design Education

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Service & process design Health Care

Results - product, student (budgetary), & health care

Local National Baldrige Recipients3M Dental Products Division (St. Paul)BI (Eden Prairie)BI (Eden Prairie)Cargill Corn Milling North America, (Wayzata)Cargill Kitchen Solutions (Monticello) (2 time recipient)Custom Research Inc., (Minneapolis)IBM Rochester, (Rochester)


Zytec Corporation, (Eden Prairie)

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Regional Program – MN, ND, SDProgram is developmental, not just recognizing the bestFour levels of Award

Excellence (top level)( p )AchievementAdvancementCommitment

List of the organizations that received these awards:www.performanceexcellencenetwork.org

To help organizations get started regional program


To help organizations get started regional program offers:

self-assessmentsalternative assessmentsBaldrige 101


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Focusing Energy & Resources

Visi

on

Alignment

Mission

Visi

on

Mission


Baldrige

Lean

ISO The Joint Commission

FDA

State & Federal Requirements

DMAIC

FMEA

Balanced Scorecard

Six Sigma

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Understanding the Baldrige CriteriaBaldrige Defines Excellence

www.performanceexcellencenetwork.org

Organizational Profile – sets the context for the way an

Profile & Seven Categories

sets the context for the way an organization operates

Categories 1 – 6 – define processes that make up the work of

the organizationCategory 7 Results

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Category 7 – Results – a composite of process, financial, and

other outcomes


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P lWorkforce

Organizational Profile: Environment, Relationships, and Challenges

People Focus

Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results

17Measurement, Analysis, and Knowledge Management

which bring about improvement here

Changes here guide changes here

Starting point for: self-assessment

iti li ti

Organizational Profile

writing an application

Describes what is importantdrives measurement choices, strategic plan

Describes operating environment & key relationships with customers, students, patients, suppliers partners & stakeholders

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suppliers, partners, & stakeholders. Evaluators & judges use it to review/understand the organization


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Organizational Profile Activity

What is your next area for improvement?

• List what are your key organizational characteristics

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characteristics• What is your organization’s strategic

situation?


P lWorkforce


People Focus

Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 1 – Leadership1.1 – Senior Leadership

– Vision, Values, and Mission• How do leaders set these?• How do leaders demonstrate commitment to

legal and ethical behavior?• How do leaders create a sustainable

organization?– Communication & Organizational Performance

• How do leaders communicate with

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workforce?• How do senior leaders create a focus on

action to accomplish objectives?


Category 1 – Leadership1.2 – Governance and Societal Responsibility

– Governance• How does your governance system keep• How does your governance system keep

leaders accountable and transparent?– Legal and ethical behavior

• How do you ensure legal and ethical behavior including meeting regulatory requirements?

S i t l ibiliti d t f k

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– Societal responsibilities and support of key communities

• How do you ensure societal well-being and community support?


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Category 1 Activity - Leadership


• How do your senior leaders lead?

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• How do you govern and fulfill your societal responsibilities?


P lWorkforce


People Focus

Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 2 - Strategic Planning

2.1 – Strategy Development– Strategy development process

• How do you conduct strategic development process?

• Who participates?

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p p• What are your work systems?

– Strategic Objectives• What are they?


Category 2 - Strategic Planning

2.2 – Strategy Implementation– Action plan development & deployment

• How do you develop and implement action plans?

• How do you modify action plans if needed?

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• What are your key performance measures?– Performance projections


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Category 2 ActivityStrategic Planning


• How do you develop your strategy?

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• How do you implement your strategy?


P lWorkforce


People Focus

Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 3 – Customer Focus3.1 – Voice of the Customer

– Customers and stakeholder listening• How do you listen to customers including

potential customers and customers of competitors?

– Determination of customers and stakeholder satisfaction and engagement

• How do you determine customer satisfaction

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How do you determine customer satisfaction and engagement?

• How do you determine customer satisfaction relative to competitors?


Category 3 – Customer Focus3.2 – Customer Engagement

– Customer Service offerings and stakeholder support

• How do you determine customer and market requirements for product and service offerings?

• How do you segment customers?– Building customer and stakeholder relationships

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Building customer and stakeholder relationships• How do you build relationships with

customers?• How do you manage customer complaints?


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Category 3 ActivityCustomer Focus


• How do you obtain information from your customers?

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• How do you engage customers to serve their needs and build relationships?


P lWorkforce


People Focus

Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 4 - Measurement, Analysis, and Knowledge Management

4.1 – Measurement, Analysis, and Improvement of Organizational Performanceg– Performance measurement

• How do you select, collect, align, and integrate data and information for tracking performance?

– Performance analysis and review

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Performance analysis and review• How and when do you review data?

– Performance Improvement


Category 4 - Measurement, Analysis, and Knowledge Mgmt

4.2 – Knowledge Management, Information, and Information Technology– Knowledge management

• How do you collect, transfer, and appropriately share knowledge both inside and outside the organization?

– Data, Information and information technology • How do you ensure hardware and software are

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• How do you ensure hardware and software are reliable, etc?

• How do you make data available as needed?• How do you make sure data is available in case

of emergency?www.performanceexcellencenetwork.org

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Category 4 Activity – Measurement, Analysis, & Knowledge Mgmt.


• How do you measure, analyze, and then improve organizational performance?

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• How do you manage your information, organizational knowledge, & information technology?


P lWorkforce


People Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 5 – Workforce Focus

5.1 – Workforce Environment– Workforce capability and capacity

• How do you ensure the workforce has the capability and capacity to get the work done?

• How do you organize the workforce to get the work done?

– Workforce climate

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– Workforce climate• How do you address environmental factors?• How do you support your workforce?• What benefits do you offer?


Category 5 – Workforce Focus

5.2 – Workforce Engagement– Workforce performance

• How do you determine the factors that affect workforce engagement?

– Assessment of workforce engagement• How do you assess engagement?• How do you relate this to results?

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• How do you relate this to results?– Workforce and leader development

• How do your learning and development systems mesh with what is important to your organization?


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Category 5 ActivityWorkforce Focus


• How do you build an effective and supportive workforce environment?

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• How do you engage your workforce to achieve organizational and personal success?


Workforce


Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 6 – Operations Focus6.1 – Work Processes

– Product and process design• How do you design products and work• How do you design products and work

processes to meet key requirements?• How do you determine these

requirements?– Process management

• How do you manage and improve

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processes?• How do you determine key support

processes?• How do you improve work processes?


Category 6 – Operations Focus

6.2 – Operational Effectiveness– Cost control

H d t l t d• How do you control costs and incorporate efficiency and effectiveness measures?

– Supply chain management• How do you select and manage

suppliers?

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– Safety & emergency preparedness– Innovation management


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Category 6 ActivityOperations Focus

What is your next area for improvement?What is your next area for improvement?

• How do you figure out how to design your products and processes?

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• How do you figure out if your operations are effective and efficient?


P lWorkforce


People Focus

Process Focus

WorkforceFocus

OperationsFocus

Work Core

Leadership

StrategicPlanning

Customer Focus

Driver Triad

Results




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Category 7 – ResultsResults item Related to Process item7 1 P d t & P O t 67.1 – Product & Process Outcomes 67.2 – Customer-Focused Outcomes 37.3 – Workforce-Focused Outcomes 57.4 – Leadership and Governance Results 1 & 27.5 – Financial and Market Results 4


Category 7 – ResultsResults enable you to look at your organization’s key performance and improvementskey performance and improvementsThey help you make decisions about how your organization is doing.They mainly come from three areas:

Baldrige criteria requirementsRegulatory requirements

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Regulatory requirements

Areas deemed important to your organization’s successUsually identified in the organizational profile


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Category 7 Results Example

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Category 7 Activity - Results

Consider what results your organization reviewsConsider what results your organization reviews to stay on track? How do you know if these are the right results?

• Product & process performance• Customer-focused performance

W kf f d f

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• Workforce-focused performance• Senior leadership & governance• Financial & market performance


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Assessing Performance with the Criteria

Three assessment options available:

Comprehensive State Quality Award

Alternative Assessment (consultant-facilitated)

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Self-Assessment


Assessment 1: State Excellence Award

Initial Evaluation Review Reach C d t C d t I t

Prepare

Conduct Site/IP SessionPrepare for Site Visit

Prepare FullEvaluation ReviewIndependently

ReachConsensus

ConductSite Visit

Conduct Imprmnt.Plng Session

Prepare Full App or BEX

Prepare application (narrative or Baldrige Express survey)

Uses teams of 10-12 trained Evaluator volunteers

3-4 months to complete (once application is submitted)

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Includes site visit, which improves feedback accuracy and accelerates organizational learning

Most comprehensive, most thorough, most valuable (but also most resource-intensive)


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Narrative vs ExpressNarrative is 50 page document (max) that describes how the organization meets criteria

I l d C t 7 ltIncludes Category 7 resultsOrg profile is additional 5 pages

Express is survey that asks criteria-based questionsAdministered on-line to statistical sampling of peoplePeople choose response that best characterizes the organizationScores determined by responses to survey

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Scores determined by responses to surveyPeople have opportunity to write comments on the answers they chooseRequires expanded org profile (10 pages)Includes Category 7 results

Scoring – Indicator of Maturity

Each item has a point valueEach item is given a score as a percentage which g p grepresents the organization’s maturity on the journey to perfectionPercentage times point value provides item scoreTotal item scores creates total score450 of possible 1000 points are in Category 7Ri i ti t i t it

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Rising scores over time represent growing maturity of organization


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Assessment 2: Alternative AssessmentPrepare Prelim. Data

GatheringSite Visit Data

GatheringImprovement

Planning

Entry-level evaluation (not eligible for Award)Intended for organizations that want the benefit of the Baldrige Criteria, but not the rigor of the full-blown assessmentQuicker than Award process: 4 phases; ~2 month cycle timeConsultant-led process (with sector/functional experts as an

ti ) lt t j i tl l t d b i ti /N t k

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option); consultant jointly selected by organization/NetworkSeries of three facilitated sessions:

½ day to talk about environment1 day for “mini” site visit½ day for presentation of findings and prioritization of improvement opportunities

Requires Baldrige Express survey for key leaders plus business results

Assessment 3: Self AssessmentPrepare Baldrige

Express Debrief

One hour primer with senior leaders

Deploy Baldrige Express survey with 25-50 leaders/ professionals

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One hour debrief with senior leaders


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• Most thorough, comprehensive and rigorous of the three.

• Evaluates the entire organization as a system.

• Less thorough, rigorous and comprehensive as Award process.

• Evaluates entire organization, but only at a basic level (deployment, learning, integration not as

• A less rigorous, high level overview of organization as a system.

• Evaluates entire organization, but only by considering workforce perception; uses a web-based,

Organizational Assessment ComparisonsPerf Excellence Award Assessment Alternative Assessment Self Assessment

• Typically, involves between 200-400 employees, increasing accuracy and promoting workforce involvement, learning, and cultural change.

• Organization is eligible for recognition (MN Quality Award).

• Benefit of trained, diverse, expert team of Evaluators who contribute over 1,000 hours collectively.

• Benefit of site visit, which promotes accuracy/organizational learning

thoroughly considered).• Consultant performs interviews and

collects data. Fewer employees involved (typically 15-20, and usually only at senior leader level).

• Not eligible for recognition.

• Benefit of expert Baldrige consultant, but only one perspective (not a diverse team).

• Benefit of “mini” site visit, but not as accurate or as deep/rich in learning

behaviorally anchored survey.• Survey administered up to 25

employees , categorized by organizational demographics.

• Not eligible for recognition.

• Minimal external analysis; relies on internal expertise to draw conclusions and identify action.

• No site visit or chance to corroborate findings

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accuracy/organizational learning.• Requires completion of narrative

application or Baldrige Express survey with a large sample, which both are fairly time intensive.

• Requires hosting a site visit; involves more staff time at all organizational levels.

accurate or as deep/rich in learning.• Less resource intensive and more

prescriptive.

• Saves organizational time, but higher fee.

corroborate findings.

• Minimally resource intensive.• Self-assessment free for members

(in a promotion). • A good place to start for

organizations new to Baldrige or desiring a quick “dip stick” on their journey to excellence.

In Today’s Environment,You Don’t Have a Choice…

Must focus on your people – your staff, key partners, and other stakeholders – their needs, their capabilities, their satisfaction & engagement& engagement

Must use data to make decisions, to systematically improve key processes

Must quickly adapt to changes in your environment and maintain agility, innovation

Must constantly improve the way you do things – your core processes, but also your support processes


processes, but also your support processes

Must rely on strong leadership – communication, transparency, vision, and constancy of purpose

Must focus on all aspects of your organization – the system

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Testimonials


Impact of Baldrige on Local Organizations“The Baldrige framework is a foundation and a benchmark for us as we work to integrate Mayo Clinic in the Midwest. The domains provide us with a focus to understand and address our challenges as we work to transform health care systems and the delivery of care”.

Dr. Rob Nesse CEO Mayo Clinic Health System

"Continuous improvement is a core value of the Byron School District. Over the last decade, our position of excellence has been achieved through the deployment, alignment and evaluation of continuous improvement processes.

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p y , g p pOur PDSA plans and district goals are central to improving student learning and student achievement."

Dr. Wendy ShannonSuperintendent Byron Public Schools

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"Throughout my 40 year career I have been passionate about improvement both personally and within whatever organization I have been associated with. Every organization wants to improve. The use of the Baldrige criteria has enabled o r organi ation to get better faster period! I ish I had

Impact of Baldrige on Local Organizations

has enabled our organization to get better, faster... period! I wish I had ‘discovered’ Baldrige a couple decades earlier.“

Jack PriggenPresident Cardinal of Minnesota, Ltd.

“Rochester Community and Technical College aspires to continuously learn and innovate; always seeking new and better ways to improve and better serve; for nearly two decades the Baldrige framework has been vital to our

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serve; for nearly two decades the Baldrige framework has been vital to our enduring journey to performance excellence.”

Dave WeberChief Student Affairs and Strategic Operations Officer

Learning & Resources Baldrige 101: Sessions held quarterly, or upon request in individual organizationsB l tBecome an evaluatorReview materials at the Network’s web site

3 assessment processes: self-assessment, alternative assessment, quality award

Baldrige NationalUse online assessments - NIST Web site (www.nist.gov)

Baldrige Criteria workbook for deeper understanding

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For more details on these event or any of the Network’s events visit www.performanceexcellencenetwork.org


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Next Steps Activity

• Identify 3 organizational changes that you want to see happen in the tnext year

1. ________________________________________________2. ________________________________________________3. ________________________________________________• Select one of the items listed above and list 3 things you will

personally do to promote its completion1. ________________________________________________2. ________________________________________________

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3. ________________________________________________

• Identify one key individual or team that you can communicate with about these goals_________________________________________________


Good Luck

Contact information:

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achieving performance excellence - mnasq.org 101_mnasq_02-12-13.… · achieving performance...

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