U.S. Baldrige Performance Excellence

Framework for Small Businesses Dr. Manu K. Vora, MBA, ASQ CQE and Fellow

Chairman and President, Business Excellence, Inc., USA Fulbright Specialist, U. S. Department of State’s Bureau of Educational & Cultural Affairs

Adjunct Faculty, School of Professional Studies, Northwestern University, USA Visiting Faculty, IIT (BHU), Varanasi, GIAN Program - MHRD, Government of India, India

Visiting Faculty, Great Lakes Institute of Management, Chennai, India manuvora@b-einc.com, http://b-einc.com, Office: 1-630-548-5531

Presentation at the

ASQ Fox Valley Meeting Warrenville, IL, May 1, 2018

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Outline • My Baldrige Journey (1989-Present) • Why U.S. Baldrige? • What is U.S. Baldrige Framework? • Key Categories of Baldrige Framework (How):

1. Leadership 2. Strategic Planning 3. Customer Focus 4. Measurement, Analysis, and Knowledge Management 5. Workforce Focus 6. Operations Focus 7. Results

• Next Steps • Resources

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My Baldrige Journey (1989-Present)

• Baldrige Training from ASQ (1989) • Baldrige Deployment at AT&T Bell Labs (1990-2000) • Baldrige Integration in MBA TQM Courses (1993-Present) • Chief Judge, Illinois Team Excellence Award (1993-1999) • Baldrige Coaching to Naperville School District Leadership

Team (1995-1996) • Senior Examiner, Asia Pacific Global Performance Excellence

Award (2004-Present) • Baldrige Coaching to Illinois Pharmaceutical Packaging

Leadership Team (2010-2011) • Baldrige Coaching to Mahamaya Technical University, Noida,

UP, India Leadership Team (2012)

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Why U.S. Baldrige? • Proven framework for Performance Excellence since 1988 • Applicable for Manufacturing, Service, Small Businesses,

Education, Healthcare, and Nonprofits • Non-Prescriptive Criteria – Adaptable to any Organization • Helps you manage all the components of your

organization as a unified whole, so that your plans, processes, measures, and actions are consistent

• Self Assessment to determine Areas of Strengths and Opportunities for Improvement (OFI)

• Iterative Continuous Improvement using OFIs • Focus on Long-Term Success and Sustainability

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U.S. Baldrige Video

Getting Results! video – (12 min)

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What is U.S. Baldrige Framework? With the Baldrige framework, you evaluate and improve your processes along four dimensions: • Approach: How do you accomplish your organization’s

work? How effective are your key approaches? • Deployment: How consistently are your key processes

used in relevant parts of your organization? • Learning: How well have you evaluated and improved

your key approaches? How well have improvements been shared within your organization?

• Integration: How well do your approaches align with your current and future organizational needs? How well are processes and operations harmonized across your organization?

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What is U.S. Baldrige Framework? You evaluate your results along four dimensions: • Levels: What is your current performance? • Trends: Are the results improving, staying the same, or

getting worse? • Comparisons: How does your performance compare with

that of other organizations, or with benchmarks or industry leaders?

• Integration: Are you tracking results that are important to your organization and that consider the expectations and needs of your key stakeholders? Are you using the results in decision making?

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U.S. Baldrige Award Winners From 1988-2017, there are 118 Baldrige Winners:

1. Manufacturing (1988-Present) – 31 2. Service (1989-Present) – 16 3. Small Businesses (1988-Present) – 28 4. Education – (2001-Present) – 11 5. Healthcare – (2002-Present) – 24 6. Nonprofit – (2007-Present) – 8 TOTAL – 118 Source: http://patapsco.nist.gov/Award_Recipients/index.cfm

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U.S. Baldrige Framework Scoring

1. Leadership – 120 2. Strategic Planning – 85 3. Customer Focus – 85 4. Measurement, Analysis &

Knowledge Management – 90 5. Workforce Focus – 85 6. Operations Focus – 85 7. Results – 450 TOTAL – 1,000

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U.S. Baldrige Winner Video

PRO-TEC Coating Company video – (12 min) 2007 Baldrige Winner, Small Business

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Organizational Performance Excellence

Delighted Customers

(VOC)

Improved Processes

(VOP)

Excited Employees

(VOE)

Operational Performance Financial Performance

VOC - Voice of the Customer

VOE -Voice of the Employee

VOP - Voice of the Process

Baldrige Criteria Framework: A Systems Perspective (2017-2018)

Great Leaders

Swami Vivekananda Nelson Mandela Abraham Lincoln Mahatma Gandhi

F. D. Roosevelt Dr. W. E. Deming Dr. J. Juran John F. Kennedy

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Disciplined People

Disciplined Thought

Disciplined Action

Building Greatness

Good to Great* * Jim Collins, HarperCollins Publishers, Inc., New York, 2001

(Study of 1,435 good companies; examined performance over 40 years; companies that outpaced industry by 3X over 15 years in the stock market)

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Leadership Paradigm Manu Vora (2014)

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YouTube Video

Leadership …that Mysterious Talent http://www.youtube.com/watch?v=UDp87fxfXoM&feature=related (4.36 min)

PRO-TEC Coating Company (Baldrige Winner, Small Business - 2007): Strategic Planning

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Customer-Supplier Relationship

Supplier Customer Process Input Output

Requirements & Feedback

Requirements & Feedback

Source: AT&T PQMI, Issue 1.1, 1988.

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VOC Model

Capture

Analyze

Respond

Verify

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Bad Customer Service (2.20 min.): http://www.youtube.com/watch?v=bTbHwnxCGaI

Customer Service Example

ARDEC: Measurement, Analysis, and Knowledge Management

• Ensures That Performance Aligns and Supports Strategy

• Ownership Assigned

• Basis for Fact-Based Decision Making

• Comparative Data Drives Performance

Strategic Planning Process

Determine Measures, Assign Owners, Align with Strategic Initiatives/Way

Gap Analysis /Action Plan

Revision

Target Met?

Strategic Objective/End

Determine who reviews and at what frequency

Collect and Validate Data

Daily, Weekly, Monthly, Quarterly, Annual Scorecard, Reports and Responsive Ad Hoc Reporting

Yes

Improvement Cycle

Communicate results report via SMS, Compare to target

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Employee-Customer-Profit Chain, Sears, USA

Employee Attitude and

Behavior

Customer Impression

Revenue Growth

A Compelling Place to Work

A Compelling Place to Shop

A Compelling Place to Invest

+ 1.3 % + 0.5 %

Source: Rucci et al., Harvard Business Review, 1998.

+ 5.0 %

Talent Management Model

Recruit

Involve

Motivate

Develop

Retain

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Employee Engagement Model

Participation

Motivation

Development

Excited Employees

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Five Dysfunctions of Team (P. Lencioni, 2002)

Absence of Trust (Invulnerability)

Fear of Conflict (Artificial Harmony)

Lack of Commitment (Ambiguity)

Avoidance of Accountability (Low Standards)

Inattention to Results (Status & Ego)

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Strength = Talent X Investment (Strengths Finder 2.0, Tom Rath, 2007 )

T - Thinking

I - Skills

I - Knowledge

I - Experience

T - Behaving

T - Feeling

STRENGTH

Strength – The ability to consistently provide near-perfect performance

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Focus on Continual Improvement of the Quality Management

System

Management responsibility

Measurement analysis & improvement

Resource management

Product realization

C U S T O M E R

R E

Q.

C U S T O M E R

S A T. Output Input

ISO 9001:2015 Standards

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Six Sigma Methodology - DMAIC

Lean and Six Sigma

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LSS

Lean Goal – Increase

process speed and reduce waste

Approach – Bias for

action employing Lean Techniques and Kaizen

Events

Six Sigma Goal – Improve quality by

decreasing variation or eliminating defects

Approach – Detailed data collection and analysis using statistical tools

embedded within DMAIC framework

5 S

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How Project Leaders Can Overcome Crisis of Silence (Grenny et.al., MIT Sloan MR, Summer 2007)

Are we planning around facts?

Is the Project Sponsor providing support?

Are we faithful to the process?

Are we honestly assessing progress & risks ?

Are team members pulling

their weight ?

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Change Management Model

Determine Need for Change

Prepare & Plan for Change

Implement the Change

Sustain the Change

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Organizational Alignment – The 7-S Model (Harvard Business School, November 19,1996.)

Staffing

Skills

Shared Values

Style

Systems

Structure

Strategy

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Baldrige Winners – Multiple Awards (Major Transformations: 1988-2017 –> 118 winners )

• AT&T – 3 (1992 – Mfg; 1992 – Service; 1994 – Service) • Boeing – 2 (1998 – Mfg.; 2003 – Service) • Cargill Corn Milling – 3 (1999 – Small Bus., 2005 – Mfg., 2008 – Mfg.) • Dana Corporation – 2 (1996 – Service; 2000 – Mfg.) • MEDRAD – 2 (2003 – Mfg., 2010 – Mfg.) • MESA – 2 (2006 – Small Bus., 2012 – Small Bus.) • Motorola – 2 (1988 – Mfg.; 2002 – Mfg.) • North Mississippi Health Services – 2 (2006 – HC; 2012 – HC) • Ritz Carlton – 2 (1992 – Service; 1999 – Service) • Solectron Corporation – 2 (1991 – Mfg.; 1997 – Mfg.) • Texas Nameplate Company, Inc. – 2 (1998 – Small Bus.; 2004 – Small Bus.) • Xerox – 2 (1989 – Mfg.; 1997 – Service) Source: http://www.nist.gov/baldrige

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AT&T Universal Card Services (1992 Baldrige, Service): Best-in-class in employee recognition and suggestion system (spent 2% of payroll on Recognition & Suggestion system).

Federal Express Corporation (1990 Baldrige, Service): Survey/Feedback/Action management evaluation system. From 1985-1990, 91% of employees “proud to work for Federal Express.”

IBM Rochester (1990 Baldrige, Mfg.): Invested heavily in Education and Training, the

equivalent of 5% of its payroll.

Best Practices - Baldrige Winners

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Milliken & Company (1989 Baldrige, Manufacturing):

“The ‘Pursuit of Excellence’ process continues to evolve after beginning the journey in 1980. Over 90 ‘opportunities for improvement’ were submitted per associate for 1999, providing a means by which all associates can contribute to improving the process.

Milliken associates participate in over 14,000 teams each year. The Sharing Rally is another avenue by which associate involvement is created, and Milliken & Company has now held over 160 Sharing Rallies.”

Craig Long, Director of Quality

Best Practices - Baldrige Winners

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Pearl River School District (2001 Baldrige, Education): In four years, faculty satisfaction rose from 89 to 98 % and staff satisfaction from 86 to 96%.

SSM Health Care (2002 Baldrige, Health Care): Employee turnover rate reduced from 21% in 1999 to 13% in August 2002.

Trident Precision Manufacturing (1996 Baldrige, Small Business): 95% of the improvement at Trident stems from employee improvement suggestions.

Best Practices - Baldrige Winners

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YouTube Video

Change is Good..… You Go First http://www.youtube.com/watch?v=jwxrsngEJDw&feature=related (3.24 min)

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Key Lessons to Remember

I. AMA: Ability determines what you are capable of doing Motivation determines how you do it Attitude determines how well you do it

II. 3Hs: Heart – Emotions Head – Ideas and Logic Hands – Implementation

III. Leadership (a Catalyst of Change): Leadership is all about Influencing, Igniting, and Inspiring ordinary people to do extraordinary things.

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Next Steps

I. If your Leadership Team is committed, involved, and supportive, begin the Baldrige Performance Excellence Journey

II. The journey requires a longer-term commitment to assess your organization

III. The real focus is to delight your customers through streamlined processes

IV. For successful Baldrige journey, need to appoint a Project Manager and Category Champion Leaders

V. Feel free to request our help to assist you in your performance excellence journey using the U.S. Baldrige Framework

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Resources AT&T (1988). Process Quality Management & Improvement Guidelines, Issue 1.1. Baldrige Performance Excellence Program, (2017-2018). U.S. Department of Commerce, NIST, Gaithersburg, MD, http://www.nist.gov/baldrige Collins, J. (2001). Good to Great: Why Some Companies Make the Leap .. and Others Don’t, HarperCollins, New York, NY. Goodman J., DePalma D., & Broetsmann S. (1996), “Maximizing the Value of Customer Feedback,” ASQ Quality Progress, December . Kessler S. (1996). Measuring and Managing Customer Satisfaction: Going for the Gold”, ASQ Quality Press, Milwaukee, WI. Kotter J. P. (2012). Leading Change, Harvard Business School Press, Boston, MA. Lencioni, P. (2004). Death by Meeting, Jossey-Bass, San Francisco, CA. Lencioni, P. (2002). The Five Dysfunctions of a Team, Jossey-Bass, San Francisco, CA. Rath, Tom (2007), Strengths Finder 2.0, Gallup Press, New York, NY. Nelson, B. (1997), 1001 Ways to Energize Employees, Workman Publishing, New York, NY. Nelson, B. (1994), 1001 Ways to Reward Employees, Workman Publishing, New York, NY. Vora, Manu K. (2015). “7 Steps to Link Quality Management to Your Supply Chain”, Supply Chain Management Review, pp. 44-51, July/August. Vora, M. K. (2013). “Business Excellence through Sustainable Change Management”, Viewpoint Article, The TQM Journal, Vol. 25, No. 6, pp. 625-640. October issue. Vora, M. K. (2005). “Managing Human Capital” chapter in Six Sigma for Transactions and Service, P. 471-500, McGraw-Hill, New York, NY. Vora M. K., Harthun S. & Kingen R. (1993). “ASQC Certification Committee Practices What It Preaches”, Quality Progress, pp. 99-103, November issue.

Thanks

Any Questions?

Presenter Manu K. Vora, Ph.D., M.B.A., ASQ CQE, ASQ Fellow Chairman and President, Business Excellence, Inc., USA Fulbright Specialist, U. S. Department of State’s Bureau of Educ. & Cult. Affairs Adjunct Faculty, School of Professional Studies, Northwestern University, USA Visiting Faculty, IIT (BHU), Varanasi, GIAN Program - MHRD, GOI, India Visiting Faculty, Great Lakes Institute of Management, Chennai, India +1- 630-548-5531; manuvora@b-einc.com; www.b-einc.com Dr. Manu Vora is Chairman and President of Business Excellence, Inc. a global quality management

consulting firm. He has over 43 years of leadership experience and has guided Fortune 500 companies with Baldrige Performance Excellence assessment. For over 25 years, as an Adjunct Professor he teaches Operations Management courses at business schools globally. He is connected with over 80 educational institutes world-wide. He is a sought after speaker on business excellence and quality management topics with over 750 presentations globally and published 70 scholarly articles in professional journals. As an ASQ Influential Voice, he has published 50 blog posts. In 2013, he gave two TEDx Talks, TEDxIITBHU Varanasi and TEDxIIT Chicago. Since 2013, he has delivered Soft Skills and Quality Management topics using technology to over 50 colleges/ universities in 14 States of India benefitting over 675,000 students/ faculty/ professionals. In 2016 he was appointed as a Fulbright Specialist by the U. S. Department of State’s Bureau of Educational and Cultural Affairs. He completed Fulbright Project at IIT (BHU), Varanasi in 2018.

He has B.S. (IIT BHU Chemical 1968), M.S. (1970) & Ph.D. (1975) in Chemical Engineering from Illinois Institute of Technology, Chicago, and a MBA (1985) with Marketing Management from Keller Graduate School of Management in Chicago. As the Founder Director and President of Blind Foundation for India (BFI), his

team has raised over $4 million to help over one million visually impaired people in India. ASQ has bestowed on him five Medals. He received “2015 BHU Distinguished Alumnus ward, “2015 & 2000 Rotary

International Paul Harris Fellow Medal”, “2012 IIT Alumni Medal”, 2011 Ellis Island Medal of Honor”, and “2010 US President’s Volunteer Service Award”.