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Health Care Criteria for Performance Excellence Business Health Care Education A disciplined approach to addressing key patient/customer and stakeholder requirements and key operational requirementsbuilt around cycles of learning. Slide 2 Masters Seminar Malcolm Baldrige National Quality Program Established in 1988 To restore vitality and competitiveness to products and services of U.S. Companies Works through a public/private partnership Demonstrated effectiveness On average, publicly traded recipients outperform the S&P 500 by 4 to 1 Slide 3 Masters Seminar Baldrige Health Care Criteria Framework A Systems Perspective Slide 4 Masters Seminar Basic Goals of the Criteria To help organizations enhance their performance through focus on: Delivery of ever-improving value to customers, contributing to marketplace success Improvement of overall organizational effectiveness and capabilities Organizational and personal learning Slide 5 Masters Seminar 1999 Award Recipients STMicroelectronics, Inc.Region Americas BI The Ritz-Carlton Hotel Company, LLC Sunny Fresh Foods Slide 6 Masters Seminar Manufacturing Award Recipients 3M Dental Products Division (1997) ADAC Laboratories (1996) Armstrong Building Products Operations (1995) AT&T Transmissions Systems Business Unit (1992) Boeing Airlift and Tanker Programs (1998) Cadillac Motor Car Company (1990) Corning Telecommunications Products Division (1995) Eastman Chemical Company (1993) Slide 7 Masters Seminar Manufacturing Award Recipients IBM Rochester (1990) Milliken and Company (1989) Motorola, Inc. (1988) Solar Turbines, Inc. (1998) Solectron Corporation (1991 and 1997) STMicroelectronicsRegion Americas (1999) Texas Instruments Defense Systems and Electronics Group (1992) Westinghouse Commercial Nuclear Fuel Division (1988) Xerox Business Products and Systems (1989) Zytec Corporation (1991) Slide 8 Masters Seminar Service Award Recipients AT&T Consumer Communications Services (1994) AT&T Universal Card Services (1992) BI (1999) Dana Commercial Credit Corporation (1996) Federal Express Corporation (1990) GTE Directories Corporation (1994) Merrill Lynch Credit Corporation (1997) The Ritz-Carlton Hotel Company, LLC (1992 and 1999) Xerox Business Services (1997) Slide 9 Masters Seminar Small Business Award Recipients Ames Rubber Corporation (1993) Custom Research, Inc. (1996) Globe Metallurgical, Inc. (1988) Granite Rock Company (1992) Marlow Industries, Inc. (1991) Sunny Fresh Foods (1999) Texas Nameplate Company (1998) Trident Precision Manufacturing, Inc. (1996) Wainwright Industries (1994) Wallace Company, Inc. (1990) Slide 10 Masters Seminar Baldrige Outperforms S&P 500 The Baldrige Index Hypothetical Investment Whole company recipients by 4.4 to 1 All recipients by 4.2 to 1 Slide 11 Masters Seminar Baldrige Winners Stock Value 1988-2000 Amount Invested Value 12/01/00 Investment Return S&P 500$50,000$136,500173% Whole Company Winners $50,000$432,000765% Slide 12 Masters Seminar Baldrige Award Recipients are world-class business organizations that secure exceptional performance by addressing workforce process, safety, morale, recruitment, retention and development Studying their practices will provide learning, guidance and direction that can be applied to improve health care organizations Project Aim Slide 13 Masters Seminar Past Recipients STMicroelectronics Ritz-Carlton Hotel Co. Boeing Airlift & Tanker Programs Merrill Lynch Credit Corp. Solectron Corp. 3M Dental Products Division 2000 Award Recipients Dana-Spicer Driveshaft Karlee Co. Operations Management International Los Alamos National Bank Companies Researched Slide 14 Masters Seminar Baldrige Health Care Criteria Framework A Systems Perspective Slide 15 Masters Seminar Staff Focus Slide 16 Masters Seminar Category 5: Staff Focus Three broad areas of staff management and improvement Work systems Staff education, training and development Staff well-being and satisfaction Slide 17 Masters Seminar Staff Focus Slide 18 Masters Seminar Summary of Findings These organizations are intentional Leaders recognize HR practices are fundamental source of bottom-line success Nothing is left to chance Leaders love their employees Slide 19 Masters Seminar Summary of Findings The role of HR is to Deliver skilled and empowered employees operating in an exceptional environment of pride and joy. Slide 20 Masters Seminar Findings, cont. These organizations believe in their people Employee satisfaction customer satisfaction Communicate clear expectations linking daily work to company strategies and goals Staff closest to the action makes decisions Ask What do you think? and pay attention Slide 21 Masters Seminar 5 Things Employees Want (assuming competitive compensation) 1.Open communication 2.Consideration of how work affects personal and family life 3.Knowledge that I make a difference 4.Quality leadership 5.Quality direct supervision Slide 22 Masters Seminar Findings, cont. These companies measure performance, use the information for decisions and empower staff to monitor and correct its own actions They share information They share authority Slide 23 Masters Seminar Findings, cont. These organizations use teams as their fundamental approach to work and design Improvement is the work of the organization Slide 24 Masters Seminar Findings, cont. Leaders delineate leadership roles and responsibilities that Model attributes and behaviors (live the life) Commit their own energy Grow and develop staff Empower staff through education Coach people at all levels Keep promises they make Set expectations of alignment and demand they be met Slide 25 Masters Seminar More Findings You cant fake it Working under these principles wills that every leader will have to change something Delegate authority along with responsibility Put real money where your mouth is Slide 26 Masters Seminar Work Design Supervisors need to know how to coach Employees must be honestly represented Communicate both the positive and the negative Flatten the organization But remember that some mid-management will be needed Slide 27 Masters Seminar Education and Development Link targets for training hours to organizational goals with learning objectives Devise means to learn from improvement within the organization Learning must be actionable to have value Slide 28 Masters Seminar Well-Being and the Environment Respond to the real issues faced by employees Quality of life matters to everyone at all levels Engage employees in real improvement Respond to bad news Treat employees with the respect they deserve and make sure everyone follows suit Slide 29 Masters Seminar Conclusions See HR as an investment, not an expense The HR ROI is a function of how employees are selected, oriented, trained, certified, reinforced and managed. Slide 30 Masters Seminar It is So Easy It is so easyit is frighteningly easyto forget why we are troubling ourselves in the very first place. It is so easyit is frighteningly easyto become trapped in a sterile thesis that our institutions must survive simply because they must survive or that our true deep purpose is to gain and preserve market share in a vacant terrain of others whose purpose is precisely the same. It is easy to believe that our habits of work are somehow valid and worth defending in isolation from the reason for that work to exist in the first place. The work is not there in the first place. In the first place, there is the patient... Slide 31 Masters Seminar The Patient Who Says Tell me what you know right away Answer me Comfort me Dont make me wait Dont waste my time Dont frighten me Slide 32 Masters Seminar The Patient Who Says Help me live Donald M. Berwick, M.D.