the baldrige framework for performance excellence
TRANSCRIPT
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.