baldrige for beginners bob dorste, performance consultant excellence in missouri foundation © 2012...

BALDRIGE FOR BEGINNERSBALDRIGE FOR BEGINNERS

Bob Dorste, Performance Consultant

Excellence in Missouri Foundation© 2012 Excellence in Missouri Foundation

2012 Conference November 14-16, 2012

Workshop Overview

Introduction to Performance Improvement Introduction to the Baldrige Criteria for

Performance Excellence Baldrige Gets Results! Ways to Get Started

Workshop Overview

History of Baldrige Criteria

In the mid-1980s, U.S. leaders realized that American companies needed to focus on quality in order to compete in an ever-expanding, demanding global market.

Then-Secretary of Commerce Malcolm Baldrige was an advocate of quality management as a key to U.S. prosperity and sustainability. After he died in a rodeo accident in July 1987, Congress named the Award in recognition of his contributions.

The goal of the Malcolm Baldrige National Quality Improvement Act of 1987 was to enhance the competitiveness of U. S. businesses. Its scope has since been expanded to health care and education organizations (in 1999) and to nonprofit/government organizations (in 2005).

Congress created the Award Program to

Identify and recognize role-model businesses Establish criteria for evaluating improvement efforts Disseminate and share best practices

History of Baldrige Criteria

Excellence in Missouri Foundation

The Excellence in Missouri Foundation was established in 1992 to help Missouri organizations improve performance and succeed in the competitive marketplace.

EIMF is the administrator of the Missouri Quality Award process, designed to recognize exemplary organizations for their achievements in Performance Excellence.

Excellence in Missouri Foundation

Not About Receiving an Award – It’s About Being “Award-Worthy

Dr. Terry Holliday, former Superintendent of Iredell-Statesville Schools, a 2008 Baldrige Award recipient, said, “If you get into Baldrige because of the Award, it’ll be a short journey. But if you get into it for the right reasons, the feedback and continuous improvement, then it’s well worth the journey.”

Ernest Davenport, former Chairman and CEO of Eastman Chemical Company, a 1993 Baldrige Award recipient, said, “We didn’t apply the [Baldrige] concepts…to win an award. We did it to win customers. We did it to grow. We did it to prosper.”

Not About Receiving an Award - It’s About Being “Award-Worthy”

© 2012 Excellence in Missouri Foundation

Excellence is a Journey, Not a Destination

K & N Management2010 Baldrige

Recipient

“I realized only 5% of the population truly wants to do what it takes to be

excellent.”

http://www.baldrige.nist.gov/PDF_files/2010_K&N_Management_Profile.pdf

Excellence is a Journey,Not a Destination


Excellence is a Journey, Not a Destination

“We still use the Baldrige Criteria the same way. It’s the framework that we use to manage our company. We’re better because we use it, and we don’t have any plans to stop. … The Criteria bring alignment that keeps us all rowing in the same direction.”--Ken Schiller, co-owner and co-founder, K&N Management, 2010 Baldrige Award Recipient

• Keynote Speaker at 2011 MQA Annual Conference

Excellence is a Journey,Not a Destination

The Baldrige Burger

Assessment/CriteriaFramework

Leadership How senior leaders’ personal actions guide and

sustain your organization Governance system Fulfilling legal, ethical and societal responsibilities Supports key communities

Baldrige Categories

Strategic planning Developing strategic objectives and action plans Strategy deployment Changing strategic objectives and action plans if

circumstances require How progress is measured

Baldrige Categories

Customer focus Engaging customers for long-term success Building a customer-focused culture Listening to the voice of the customers…and

using this information to improve and identify innovation opportunities

Baldrige Categories

Measurement, analysis, and knowledge management Selecting, gathering, managing and improving

data, information and knowledge assets Managing information technology Reviewing and using reviews to improve

performance

Baldrige Categories

Workforce focus Engaging, managing and developing

workforce Ability to assess workforce capability and

capacity Workforce environment delivering high

performance

Baldrige Categories

Operations Focus Designing work systems Designing, managing and improving key

processes Readiness for emergencies

Baldrige Categories

Results Product Outcomes Customer – Focused Outcomes Workforce – Focused Outcomes Operations-Focused Outcomes Leadership Outcomes

Category-based, trends, comparisons where applicable

Important! 450 out of 1,000 points

Baldrige Categories

What Makes the Criteria for Performance Excellence Different From Other Management Approaches?

The Criteria for Performance Excellence are a comprehensive management

approach that focuses on results in all areas, organizational and personal learning, and knowledge sharing.

What Makes the Criteria for Performance Excellence Different fromother Management Approaches?

Why the Criteria for Performance Excellence?

Provides a management approach to improve your organization’s performance validated by thousands of organizations nationwide

Guides organizations to: Think and act strategically Align processes and resources Engage workforce and customers Focus on key results

Why the Criteria for Performance Excellence?

Provides a fact-based analysis Uses a proven (25 year) tool Enables determining performance on a national yardstick Enables focus on improving that which will have the

greatest positive impact on customers, stakeholders, and the organization

Builds a customer focus and results oriented culture

Why Conduct a Baldrige – Based Assessment?

Baldrige Gets Results!(Business)

Honeywell Federal Manufacturing & Technologies Overall customer satisfaction reached or exceeded 95%. Customer product quality and reliability reached 99.9% for traditional customers and 99%

for nontraditional customers. 72% of the workforce indicated a “positive environment,” compared to 56% for

commercial best-in-class manufacturers.

Cargill Corn Milling (CCM) CCM saved more than $15 million from 2006 to 2008 by using ideas generated by

employees. The error-free delivery rate was 99% or above from 2005 to 2008. Per-bushel costs held steady from FY2006 to FY2008 even though energy costs increased

50-80%, chemical costs rose 30%, and maintenance costs increased 10%.


Nestle Purina2010 Baldrige

Recipient

http://www.baldrige.nist.gov/PDF_files/2010_Nestle_Purina_Profile.pdf

Baldrige Gets Results!(Business)

Baldrige Gets Results!(Non-Profit)

City of Coral Springs The crime rate decreased by nearly half over 10 years. The percentage of residents who are satisfied with city services has been 95% or higher

since 1999. Business satisfaction rose from 76% in 2004 to 97% in 2008.

VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center Budget for new studies grew 143% from 2002 to 2008, compared to 58% for Veterans

Affairs. In 2008, productivity (as measured by revenue/employees) of $221,000 compared

favorably to that of eight top competitors, with the highest competitor at $195,000. Overall, customer satisfaction increased: the percentage of customers rating the program

“good-excellent” increased from 83% in 2003 to 100% in 2009. Customer complaints were consistently fewer than 3.4 per million units shipped from 2001 to 2009.


Concordia

Publishing House

http://www.nist.gov/baldrige/award_recipients/concordia_profile.cfm

Baldrige Gets Results!(Non-Profit)


Montgomery County

Public Schools

http://www.baldrige.nist.gov/PDF_files/2010_MCPS_Profile.pdf

Baldrige Gets Results!(Education)

Let the record show…

91%

43%

69%

32%

79%

37%

23%

7% 8%

0%

9% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OperatingIncome

Sales TotalAssets

Employees Return onSales

Return onAssets

Award Winners

Control Firms

Performance Measures

Per

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HENDRICKS AND SINGHAL STUDY

Let the record show…

BENEFITS OF BALDRIGE

The Baldrige Model Tailored to Help Your Organization Grow

That’s why thousands of organizations of all sizes in every industry use the Baldrige Criteria—and a select group applies for the Missouri Quality Award and the Malcolm Baldrige National Quality Award , including many Missouri companies representing the best of the best in management practices:

Large, Fortune 500 companies, including Boeing Aerospace Support (2002 recipient of the Missouri Quality Award, and 2003 Malcolm Baldrige National Quality Award recipient).

Small businesses, such as Midway USA (2008 recipient of the Missouri Quality Award and 2009 Malcolm Baldrige National Quality Award recipient), and Missouri Corporate Credit Union (2006 Missouri Quality Award Recipient).


Large hospitals and hospital systems, like SSM Health Care (2-time Missouri Quality Award recipient and 2002 Malcolm Baldrige National Quality Award recipient), Heartland Health (2-time Missouri Quality Award recipient and 2009 Malcolm Baldrige National Quality Award recipient) as well as single hospitals like Lake Regional Hospital (2003 Missouri Quality Award recipient).

Large and small schools and colleges, such as Northwest Missouri State University (4-time Missouri Quality Award recipient) and Park Hill School District (2009 Missouri Quality Award Recipient).

Why Are These Organizations Outperforming?

They view their organizations as a integrated holistic “system”

They recognize that high-performance comes from all the parts of the “system” working effectively together

They use the Criteria for Performance Excellence as a framework to assess and improve their “system”


The Baldrige Model What it is NOT

NOT a fad…effective performance model for 25 years NOT (intended to be) additive NOT easy NOT a quick fix NOT a program NOT an award

Do your leaders set clear a direction that is aligned with the vision, mission and values and is cascaded throughout the organization with measurable goals?

Does your organization factually understand customers — their needs, expectations and preferences?

Do people in your organization have the information they need to make good decisions?

Where Is Your Organization on the Performance Excellence Continuum?

Ad Hoc Management Approach High Performance Management System

How does EiMF help your organization with Baldrige?

The Excellence in Missouri Foundation offers organizations: An integrated management framework that gets results Assessment tools to evaluate improvement efforts Training for examiners so that they can learn best practices

from other organizations and bring those back to your organization

Feedback reports from a team of trained experts, highlighting organizational strengths and opportunities for improvement

How does EiMF help your organization with Baldrige?

The Excellence in Missouri Foundation offers organizations: Presentations and workshops on how to improve using the

Baldrige Criteria Customized assistance tailored to your organization’s

needs Conferences and other learning events that showcase best

management practices The Missouri Quality Award for organizations recognized

as national role models


How to Get Started

Many organizations tell EIMF that they are not ready to apply for the Missouri Quality Award. So, where do you get started?

Examiner Training

Assessments

Missouri Quality Award Process

Customized Consulting

Membership and Baldrige Community of Excellence Groups (BPEGs)


Why Serve as an Examiner?

Many organizations choose to send examiners through the MQA process to become trained in the Baldrige Criteria.

Understanding the MQA Criteria has been compared to completing a “mini-MBA.” Through their training and assessment work, Examiners have the chance to learn how high-performing organizations have used the criteria to improve their own organizations.

Examiners also get an opportunity to develop their personal and analytical skills as they work with their fellow team members. The extensive insight they obtain as a result makes them a more valuable person when they bring this learning back to their regular job.


Training Your Workforce

MQA Examiner Training


Examiner Benefits

Strengthen your ability to use the Criteria for Performance Excellence for organizational assessment

Network with peers and enhance your own professional growth Review applications from leading organizations in Missouri to

learn how they achieve performance excellence Develop analytical and consensus building skills and a systems

perspective that can be applied to your organization Possibly participate in site visit reviews of the highest scoring

applicants


Examiner Process and Commitments

Expert Examiner Training (3 Days for New Examiners) * 8 Hours General Examiner Training 20 – 30 Hours for Pre-Work 40 Hours for Individual Review 10 Hours for Consensus Prep 8-10 Hours for Consensus Meeting 8-10 Hours for Site Visit Training 1 week of Site Visit work (Sunday – Friday, 60 – 80 Hours, all

examiners stay in hotel near applicant with team)*$350 charge for training in 2012, HOWEVER, member organizations can send up to six

examiners free of charge. There is a $350 cancellation fee for examiners who do not complete site visit.

Examiner Hierarchy

New Examiner Returning Examiner – Typically serves 3 years before becoming a senior

examiner Senior Examiner – Skilled at comment writing, and diligent about

performing volunteer duties; shows promise as becoming a team leader Team Back-up – Ready to take on additional responsibility of helping

organize and assist with new examiners Team Leader – Shows leadership and responsibility, strong ability to

organize team activities, answer questions, and direct team members according to the criteria

Overseer – Expert on criteria, expected to oversee the team and make sure they are following proper procedures throughout the process

Judge – Neutral parties that read feedback reports from the teams, and make determinations on the recipients of the

Missouri Quality Award


Introduction to Assessments

Assessment Purpose

Identifies strengths on which to continue building Identifies next steps to enable achieving the next

level of performance Identifies the most important next steps to take Develops widespread understanding of the Baldrige

Performance Excellence/Management Model

Assessment Hierarchy

Advanced Level— Three-tiered program —

Determines and recognizes role models—Identifies strengths and key next steps

Intermediate Level

—Assesses interfaces—Builds knowledge of criteria terminology—Identifies strengths and key next steps

Entry Level—Assesses foundations

—Builds knowledge of management model—Identifies strengths and key next steps

Skilled Level—External Assessment

—Addresses full criteria for 3 categories + results

Malcolm Baldrige National Quality Award

Missouri Quality Award

Leadership Triad Application

Show Me More!

Show Me Challenge

Why Do the Show Me Challenge Assessment?

Educate Leadership Team - Baldrige is a top down approach.

Educate organization - Organization needs to have a basic understanding of the Baldrige model.

Conduct baseline organizational assessment against the Baldrige criteria

Show Me Challenge

Timeline is 3-6 months for most organizations Team of 6 OR 12 members of your mid-level

employees trained in Baldrige concepts Comprehensive Feedback Report based on the

Baldrige Criteria, written by EiMF staff that addresses Strengths and OFIs in each category Key Themes for the identification of next steps

Show Me” Internal Assessment Process

Team Training (1 day)

Leadership Interviews

FinalReport

EIMF developsFeedback

Report based onFindings

Consensus(1-2 days)

Walk Around Training

(2.5 hours)

Walk Around Interviews

After the Assessment…“Now What?”

Prioritize opportunities for improvement Develop action plans Execute the plans Measure progress

Show Me More Assessment

MQA Application


Missouri Quality Award ProcessIt’s Not About a Trophy

The Missouri Quality Award is the state’s highest honor of recognition for an organization’s achievements in Performance Excellence and implementation of the Baldrige Criteria.

The MQA process is also a valuable tool that can be used to help an organization identify strengths and opportunities for improvement, regardless of whether an organization receives the award.



1. An organization can apply to three different award levels.

Level 1 – Fifteen page application including Organization Profile, 6 process questions and 4 results

Level 2 – Thirty-five page application including Organization Profile, 24 process questions and 6 results

Level 3 – Full 50 page application, to apply for the Missouri Quality Award


2. After application submission… Level 1 – Two senior examiners would lead application review

and feedback report Level 2 – Four examiners (1 Team Lead and 3 examiners)

perform application review and provide feedback report Level 3 – A team of 8-12 examiners from various sectors and

areas of the state perform an individual review of the application. The examiners formulate 6-8 feedback comments addressing each area of the criteria, identifying both strengths and opportunities for improvement. Each examiner spends an average of 60 hours during this stage.



3. Consensus Process: Level 1 – Two examiners collaborate throughout process to

create feedback report Level 2 – Coordinate consensus with Level 3 depending on

Overseer availability, same process as Level 3 Level 3 – Following Individual Review, the team of examiners

come together for a one-day consensus meeting in July, identifying the Key Themes from the comments of all the examiners. During consensus, the team arrives on a score for the application.



4. In August, the Board of Judges reviews the consensus scorebook from the teams and determines if an applicant will receive a site visit.



5. Once a site visit has been awarded, the team of examiners travels in September to the applicant’s location for “walk arounds.” Level 1 – Proposing two ½ day visits separated by 1 to 2 weeks Level 2 – Coordinate with Level 3 site visits, proposing 2 ½

days Level 3 – After 2-3 days on-site, the team spends 2-3 days

compiling their final findings into a completed feedback report, usually approximately 50 pages.



6. Based on the final report and scoring, the Board of Judges choose which applicants receive the respective award level.

Level 1 – Scoring range of 10-25% receives a Transition to Quality Certificate, scoring range of 30-45% receives a Basic Achievement in Quality Certificate

Level 2 – Scoring range of 10-25% receives a Transition to Quality Certificate, scoring range of 30-45% receives a Basic Achievement in Quality Certificate, scoring range of 50-65% receives Overall Achievement in Quality Certificate

Level 3 – Missouri Quality Award




In November, the MQA recipients are recognized at the annual conference in Columbia, MO.

During the conference, examiners are also recognized for their dedication and service, and all attendees are invited to hear speeches from previous MQA recipients and past national Baldrige award recipients.


Missouri Quality Award Recipients

There is no limit to the number of awards presented. Previous winners include: 2012 (2 recipients): Research Psychiatric Center (Kansas City), SSM Home Care (St.

Louis)

2011 (4 recipients): Federal Reserve Bank of Kansas City (Kansas City), SSM Health Care and SSM Integrated Health Technologies,(St. Louis), University of Missouri Health Care (Columbia)

2010 (6 recipients): Capital Region Medical Center (Jefferson City), Citizens Memorial Healthcare (Bolivar), Lake Regional Health System (Osage Beach), Mid-America Transplant Services (St. Louis), Saint Luke’s Health System (Kansas City), SSM Health Care (St. Louis)

2009 (3 recipients): Concordia Publishing House (St. Louis), Park Hill School District (Kansas City), St. Mary’s Health Center (Jefferson City)

2008 (5 recipients): Federal Reserve Bank of St. Louis (St. Louis), Midway USA (Columbia), Northwest Missouri State University (Maryville), SSM Integrated Health Technologies (St. Louis), SSM St. Francis Hospital and Health Services (Maryville)

Thoughts to Consider

Applicants who have completed a Show Me Challenge Assessment score, on average, 100 points higher on their state level application than those organizations who did not complete an internal assessment.

Of the seven Missouri Organizations who have received Baldrige, every one competed and won at the state level prior to applying to and winning Baldrige.

Thoughts to Consider

All of the Missouri Baldrige winners build their expertise of the criteria and the examination process by serving as an examiner at the state level.

The completion of an internal assessment aids in the completion of an application for the State or National level programs. The feedback report can be leveraged to respond to the criteria questions.

Customized Consulting

With expertise in all aspects of the Baldrige Performance Excellence and Business Management Model, EiMF can customize consulting services to your needs. Examples include: Focus Groups Balanced Scorecard Strategic Planning Core Competencies Communications Planning

BECOME A MEMBER ORGANIZATION

Benefits of Membership

Entrance into local BPEG group for networking & educational experiences (cohort learning)

Discounts on workshops, conference & Quest events

Listing on EiMF promotional materials such as conference programs, website, etc.

FREE new examiner training for up to 6 employees ($350 value/each)

Membership Levels

Individual Organizational Membership Premium Membership

# Employees

2-15 16-50 51-75 76-99 100-199 200-499 500+ Stakeholder Supporter Collaborator Facilitator Leader Visionary Partner

Dues$150 $150 $250 $500 $750 $1,200 $2,000 $3,000 $3500+ $5K+ $10K+ $20K+ $35K+ $50K+ $75K+

Benefits Category 1 + + + + + + + + + + + + + + +

Benefits Category 2 + + + + + +

Benefits Category 3 + + + + +

Benefits Category 4 + + + +

Benefits Category 5 + + +

Benefits Category 6 + +

Benefits Category 7 +

What are your Questions?

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