the baldrige framework for performance excellence

23
PRESENTED BY Kent Ginthone P. Nasarondo Renz Lim Jay Lestair Beti-an

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PRESENTED BY

Kent Ginthone P. Nasarondo

Renz Lim

Jay Lestair Beti-an

Started when U.S. recognized that productivity was declining

President Reagan signed Legislation mandating a study or conference on

productivity in October 1982.

Result of conference recommended that there should be a National

Quality Award, similar to the Deming Prize which has been given in Japan

since 1951, to be awarded annually to those firms that successfully

challenge and meet the award requirements.

The Malcolm Baldridge National Quality Improvement Act was signed into

Law ( Public Law 100-107) on August 20, 1987.

The focus of the program was defined as follows:

Helping to Stimulate American Companies to improve quality and

productivity

Recognizing the achievements of those companies that improve the

quality of their goods and services providing an examples to others

Establishing guidelines and criteria that can be used by business,

industrial, governmental and other enterprises un evaluating their own

quality improvement efforts

Providing specific guidance for other American Enterprise

The Malcolm Baldridge National Quality Improvement Act was signed into

Law ( Public Law 100-107) on August 20, 1987

The award was named The Malcolm Baldridge National Quality Award

Its categories expanded in Non-Profit Education and Health Care in 1999 as

approved by the Congress

Expanded award category in other types of Non-Profit sectors in 2007.

Award evolved into a Comprehensive National Quality Program

In 2010, via act of Congress, the Program changed its name to The Baldrige

Performance Excellence Program.

Excellence, designed to encourage companies to enhance their

competitiveness through an aligned approach to organizational performance

management that results in:

Delivery of ever-improving value of customers, resulting in improved

marketplace success

Improvement of overall company performance and capabilities

Organizational and Personal Learning

Malcolm Baldridge Award Recipients

Manufacturing

Motorola, Inc. (1988)

Sunny Fresh Food, Inc. (2005)

Small Business

Stoner, Inc. (2003)

MESA Products, Inc. (2012)

Service

Federal Express (FedEx) (1990)

Xerox Business Services (1997)

Education

Pearl River School District (2001)

Health Care

Saint Luke’s Hospital in Kansas City (2003)

1. Leadership- signifies critical importance of leadership to business success

Senior Leadership

Governance and Social Responsibilities

2. Strategic Planning- examines how an organization develops strategic objectives & action plans

Strategy Development

Strategy Implementation

3. Customer Focus- examines how organization engages its customers for long term marketplace

success and builds a customer-focused culture.

Voice of the Consumer

Customer Engagement

4. Measurements, Analysis and Knowledge Management- this is positioned as the foundation for

all other categories in the systems framework

Measurement, Analysis, and Improvement

Management of Information, Knowledge and Information Technology

5. Workforce Focus- how an organization build an effective and supportive

workforce environment

Workforce Environment

Workforce Engagement

6. Operation Focus- examines how organization designs, manages, and improves it

work systems and work processes.

Work Systems

Work Processes

7. Results - this examines the organization’s performance and improvement in its key

business areas: customer satisfaction, financial and marketplace performance, human

resources, supplier and partner performance, operational performance, and

governance and social responsibility. The category also examines how the organization

performs relative to competitors.

Visionary Leadership

Customer-Driven Experience

Organizational and Personal Learning

Valuing Work Members and Partners

Agility

Focus on the Future

Managing for Innovation

Management by Fact

Societal Responsibility

Focus on Results and Creating Value

System Perspective

Initial set of Criteria in 1988 had

62 items with 278 areas to

address.

In 1997, a more generic and user

friendly which resulted in 20

items and 30 areas to address.

In 1999, the Criteria were

reworded in a question format

that managers can easily

understand.

The most significant changes in

the criteria reflect the maturity

of business practices and total

quality approaches. Example

Organization that apply for the Award submit a 50-page application responding to the questions in the

Criteria (Leadership, Strategic Planning, Customer Focus, etc)

Evaluation and Selection Process is rigorous and designed to be objective and immune to political

pressures.

1st stage, each application is thoroughly reviewed by approximately 7 examiners

The 6 categories in the criteria focuses and is evaluated on 4 factors:

Approach

Deployment

Learning

Integration

The category 7 (Results) evaluates through an organization’s outputs and inputs. The factors include:

Current Performance Level

The Rate and Breadth of Performance Improvement

The Extent to which they address customer, product, market, process, and action plan performance

requirements.

Then the examiner team tally all the scores and discusses about individual comments.

National Panel of Judges then selects the applicants that they believe have the potential to be a

recipient for site visits.

Site visit is conducted and verification of information.

All participants receives feedback report that critically evaluates the Company’s strengths and

areas of Improvement along with the distribution of numerical scores of all applicants.

Highly-regarded as role models for others

Their Characteristics that Distinguishes them from other Organization are the following:

Achievement in Results- attained significant results across all different areas or

categories.

Entrepreneurship and Innovation- providing of products and services that lead their

marketplace.

Agility- strategic in decision making and in their ability to adjust strategy.

Governance and Leadership Metrics- providing themselves with sound guidance like the

conducting of evaluation to measure the performance of their leadership and

governance.

Work Systems and Work Processes- Understanding their work.

Creation of the national and international standard

for performance excellence

Produced role models

Shared best management practices

Generated award programs

Raised U.S. competitiveness

Established outreach and education systems

European Quality Award ( 1991)

Canadian Award for Business Excellence

Australian Business Excellence Award

Quality Awards in China

- Philippine Quality Award Program or PQA exist where it is awarded for recognizing Filipino

Businesses for Excellence in Applying the Principles of Total Quality Management where it was

headed by the Former President Fidel V. Ramos in response to growing challenges of

Globalization.

- It was also adapted from the Baldridge Excellence Program but having different kind of grading

system in its criteria

The applicant must comply these criteria:

Management (45 pts.)

Planning (35 pts.)

Customer Focus (35 pts.)

Measurement and Data Management (35 pts.)

Workforce Focus (35 pts.)

Operations Focus (35 pts.)

Business Results (180 pts.)

Baldrige focuses on

performance excellence for the

entire organization in overall

management framework,

identifying and tracking

important organization results.

ISO 9000 Framework

ISO focuses in product and

service conformity for

guaranteeing equity in the

marketplace and concentrates

on fixing quality system

problems and product and

service nonconformities

Six Sigma Framework

Six Sigma focuses on measuring

product quality and driving

process improvement and cost

savings throughout the

organization.

Even each offers a different emphasis in helping organizations

but it all end up with two very main objectives which are:

To improve the performance of the Organization/s

Increase Customer Satisfaction

Chapter 10, The Baldrige Framework for Performance Excellence, page

521-547

https://en.wikipedia.org/wiki/Philippine_Quality_Award

pacweb.alamo.edu/FacultyDev/pdf/Staff_files/ppt/Introduction%20to%2

0Baldrige-EDD%20v2.pptx

www.nist.gov/baldrige.