Baldrige 20 20

BALDRIGE
2O 2O
2O 2O
AnExecutivesGuidetotheCriteriafor
PerformanceExcellence
WithForewordsby
RosabethMossKanter
andGregoryR.Page
F
T
Featuring Data and Stories from Organizations
That Used the Criteria to Become U.S. Role Models
BaldrigePerformanceExcellenceProgram
NationalInstituteofStandardsandTechnology
U.S.DepartmentofCommerce
100BureauDrive,Stop1020
Gaithersburg,MD20899-1020
Telephone: (301) 975-2036 Fax: (301) 948-3716
E-Mail: baldrige@nist.gov Web Site: http://www.nist.gov/baldrige
PrintedinAugust2011intheUnitedStatesofAmerica
Leadauthor:ChristineSchaefer;leadeditor:DawnBailey.Thefollowingstaff
membersoftheBaldrigePerformanceExcellenceProgramalsocontributedto
thispublication:MarilynBarstow,JacquelineCalhoun,EllenGarshick,Millie
Glick,HarryHertz,ScottKurtz,andJeffLucas.Bookdesignandillustrationsby
CapitolCommunicationSystems,Inc.,Crofton,MD
TheBaldrigeProgramgratefullyacknowledgestheBaldrigeAwardwinners
whose stories, fgures/data, and photos appear in this book: AtlantiCare; Boeing
Mobility;CargillCornMilling;CityofCoralSprings;DMPetroleumOperations
Company;FreeseandNicholsInc.;HeartlandHealth;HoneywellFederal
ManufacturingandTechnologies,L.L.C.;Iredell-StatesvilleSchools;MEDRAD,
Inc.;MercyHealthSystem;MESAProducts,Inc.;MidwayUSA;Montgomery
CountyPublicSchools;NestlPurinaPetCareCompany;PoudreValleyHealth
System;PremierInc.;PRO-TECCoatingCompany;RichlandCollege;TheRitz-
CarltonHotelCompany,L.L.C.;SharpHealthCare;SSMHealthCare;Texas
NameplateCompany,Inc.;U.S.ArmyArmamentResearch,Developmentand
EngineeringCenter;andVeteransAffairsCooperativeStudiesProgramClinical
ResearchPharmacyCoordinatingCenter.
Coverphotos:Toprow,clockwise:TerryHolliday,formersuperintendent,
Iredell-StatesvilleSchools;QuintStuder,CEOandfounder,StuderGroup;
JosephKing,formerchiefhumancapitalofcer,U.S.ArmyArmamentResearch,
DevelopmentandEngineeringCenter;SisterMaryJeanRyan,FSM,president
andCEO,SSMHealthCare;DavidTilton,CEO,AtlantiCare;SamuelM.Liang,
presidentandCEO,Medrad;MikeSather,director,VeteransAffairsCooperative
StudiesProgramClinicalResearchPharmacyCoordinatingCenter;andJoAnn
Brumit,CEO,KARLEE
Exceptasnotedherein,materialscontainedinthisbookareinthepublicdomain.
Publicdomaininformationmaybefreelydistributedandcopied.However,this
bookcontainsphotographsandothergraphicsthatmaybeprotectedbycopyright
law. DILBERT cartoons are used with permission, Scott Adams/Dist. by United
FeatureSyndicate,Inc.SomegraphicsdepictingBaldrigeAwardwinners
organizationalprocessesorresultsarethepropertyofthoseorganizationsand
areusedwiththeirpermission.Permissiontotransmitorreproducecopyrighted
materialsmustbeobtaineddirectlyfromthecopyrightowners.
TheNationalInstituteofStandardsandTechnologyisnotrecommending
orendorsingtheorganizationsfeaturedinthisbook.Organizationalresults
referencedinthispublicationreectcurrentdataatthetimeeachorganization
receivedtheMalcolmBaldrigeNationalQualityAward.
FormoreinformationontheBaldrigeCriteriaforPerformanceExcellence
and the Malcolm Baldrige National Quality Award, visit http://www.nist.gov/
baldrige/. For more information on state, local, and sector-specifc awards based
ontheBaldrigeCriteria,visittheAllianceforPerformanceforExcellenceat
http://www.baldrigepe.org/alliance/.
Contents
ForewordbyRosabethMossKanter,ArbuckleProfessor,
HarvardBusinessSchool;ChairandDirector,
HarvardUniversityAdvancedLeadershipInitiative...........................v
ForewordbyGregoryR.Page,Chairmanand
ChiefExecutiveOfcer,Cargill,Inc................................................vii
LetterfromHarryS.Hertz,Director,
BaldrigePerformanceExcellenceProgram......................................ix
Introduction....................................................................................xi
RepresentativeRoleModelsandData............................................1
TheCaseforBaldrige:ModelofExcellenceinManufacturing....2
TheCaseforBaldrige:AServiceCompanysSuccessStory........10
TheCaseforBaldrige:BenetsforaSmallBusiness..................16
TheCaseforBaldrige:AHealthCareRoleModel.....................25
TheCaseforBaldrige:RoleModelsinEducation......................35
TheCaseforBaldrige:SuccessesintheNonprotSector..........46
AwardWinnersJourneys:HowBaldrigeLedThemtoExcellence ..55
TheCriteria:FrameworkforPerformanceExcellence ..................81
EthicsandSustainability:
TheFoundationforRole-ModelResults.....................................83
HowCantheBaldrigeProgramHelpYouNow?...........................93
Appendix:ExamplesbyCriteriaCategory ....................................99
Foreword
by Rosabeth Moss Kanter
TheMalcolmBaldrigeNationalQualityAward(astheBaldrige
Programwasrstknown)wasdevelopedinresponsetoacrisisinU.S.
competitivenessseveraldecadesago,atthedawnoftheglobalinformation
era.AmericanmanufacturingwaslosinggroundtoJapanesecompanies
whichhadadoptedqualityimprovementsystemstaughttothem,ironically,
byanAmerican,W.EdwardsDeming,aspartoftherebuildingeffortafter
WorldWarII.TheDemingPrizewasnamedinhishonorin1950inJapan.
Bythemid-1980s,Japanwasaneconomicpowerhouse,andsluggish
U.S.companieswereunderpressuretoseekperformanceexcellenceand
innovationorrisklosingfurtherground.TheriseofJapaneseindustry,
fromautomotivemanufacturingtoelectronics,couldnotbewrittenoffas
duetolow-costlabor;itwasclearlyseenasemanatingfromoutstanding
managementsystems,capturedinthecriteriafortheDemingPrize.
In1987,theU.S.governmentcounteredwithitsownprize,theBaldrige
Award,toencourageAmericancompaniestoexaminetheirpractices,
benchmarkagainstthebestcompanies,andmakenecessarychangesto
becomeleaner,faster,andmorecustomer-oriented,withfact-baseddecisions
andresponsivenesstomultiplestakeholders,allinpursuitofzerodefects
andhighperformance.Thisquestforquality,backedbyaprizeawardedby
thePresidentoftheUnitedStates,becameanationalmovement,informing
managementpracticeswellbeyondthecompaniesapplyingfortheprize.
ThesuccessoftheBaldrigeprograminstimulatingchangeleditsleadersto
applyittoothermajorsectorsrequiringtransformation,notablyhealthcare
andeducation.IwasprivilegedtoserveontheBoardofOverseersforthe
BaldrigeProgramatthispivotalpointinitshistory.
Foreword v
Now,in2011,U.S.competitivenessisagainatrisk,withanewsetofAsian
challengersfromChinaandemergingmarketcountries.Theearly21stcentury
addssomenewperformancepressuresoncompanies.Environmentalimpact
andsocialresponsibilityhavebeenaddedtotheagenda.Theriseofthe
Internetmakescustomersmoreknowledgeableandlessforgiving,giventheir
accesstoinformationaboutnumerouschoices;afterall,globalcompanies
cansourcefromanywhereintheworld.Transparencymakesitharder
forcompaniestohidemistakes.Someoftheirmistakeshaveenormously
disastrousconsequences,suchastheBPoilspillintheGulfofMexico.The
eraofinformation-drivenglobalizationischaracterizedbyfrequent,rapidand
sometimesunpredictablechange,bothdonebyleadersanddonetothemby
eventsintheexternalworld.Globalizationincreasesthespeedofchange,as
morecompetitorsfrommoreplacesproducesurprises.Systemeffectssend
ripplesthatspreadtomoreplacesfasterinnovationsinoneplaceproving
disruptiveinothers,problemsinoneeconomytriggeringproblemsinothers.
ThiscontextmakestheBaldrigePerformanceCriteriamorenecessaryand
appropriatethanever.Continuousimprovementisnotmerelyagoodthing
forahandfulofcompaniesbutasurvivalstrategyforeveryorganization,as
theonlywaytocreateorganizationscapableofrapidadjustmenttorising
standardsandchangingconditions.Indeed,theBaldrigeProgramhasitself
evolvedtoaddmorevariablesthathavebecomecriticaltoeffectivenessinan
intenselycompetitiveglobalinformationeconomy.Thereisahighpremium
forinnovation,thefasterthebetter,aswellastheabilitytocontinuously
upgradeproductsandprocesses.
Thedataandstoriesinthistimelybookmakeaconvincingcasethatuse
oftheBaldrigeCriteriacanhelporganizationsassessandimprovetheir
performance,becomingmoresophisticatedabouthowtoalignalloftheir
processestoachievedesiredresults.Thatisimportantnotonlytothesuccess
ofmanufacturingandserviceenterprisesbutalsosectorssuchashealthcare
andeducationwhicharevitaltothefutureoftheeconomyandthewell-being
ofsociety.TheBaldrigeAwardisgiventoonlyafewoftheapplicantsbecause
theymeetthehigheststandards.Butinasense,everyorganizationthatuses
theBaldrigeCriteriaforself-studyandchangecanturnouttobeawinnerdue
totheirincreasedabilitytolearn,adapt,innovate,andachieveexcellence.
Rosabeth Moss Kanter is the Ernest L. Arbuckle Professor of Business Administration at Harvard
Business School and chair and director of the Harvard University Advanced Leadership Initiative. She
is author or coauthor of 18 books. Her latest book is SuperCorp:HowVanguardCompaniesCreate
Innovation,Prots,Growth,andSocialGood.
Baldrige 20/20: An Executives Guide to the Criteria for Performance Excellence vi
Foreword
by Gregory R. Page
Buildingahigh-performanceorganizationinavolatileworldcanat
timesseemfairlyelusiveforthosewhoareleadinglargeinstitutions.
Fromthegrowthoftechnologyandshiftingcustomerexpectationsto
theemergenceofnewmarketsandglobalcompetition,itisclearthat
whatittakestobesuccessfultodayisdifferentfromwhatittookjust
adecadeagoandcertainlydifferentfromwhatitwaswhentheU.S.
CongresspassedtheMalcolmBaldrigeNationalQualityImprovement
Actin1987.ThepurposeoftheActandtheawardsprogramitspawned
wastoenhanceU.S.competitivenessbyencouragingorganizationsto
focusonqualityandperformanceexcellence.Itdidthisbyestablishing
criteriaforevaluatingimprovementefforts,identifyingandrecognizing
role-modelorganizations,anddisseminatingandsharingbestpractices.
Baldrige 20/20: An Executives Guide to the Criteria for Performance
Excellenceprovidestodaysexecutiveswithpracticalexamplesand
keeninsightsonhoworganizationscanstayfocusedandexcel.While
theinformationsharedherecomesfromBaldrigeAwardwinners,
thisvolumeisneitheracelebrationoftheiraccomplishmentsnor
anarcane,overlycomplexviewofeverysteptakenintheirjourney.
Instead,whatyouhavehereisausefulguidethatsubstantivelyshares
howothersaresuccessfullynavigatingthestormsofchange,achieving
operationaleffectivenessandefciency,improvingnancialresults,
enhancingcustomerservice,andwinningnewmarketsthrough
applicationoftheBaldrigeCriteria.
Foreword vii
Forthosewhoseorganizationshavehadthehonorofreceivingthe
MalcolmBaldrigeNationalQualityAward,therealwincomesnot
inaunitofacompanyorinstitutionreceivingtheawardbutinwhat
theeffortsteachusaboutourselves,ourorganizations,andwhat
wecandotocreateacultureofperformanceexcellence.AtCargill,
oureggprocessingandcornmillingbusinesseshavebothbeen
recognizedwithBaldrigeAwards.Thebusinessescollectiveefforts
notonlyexposedimprovementsinoperations,productquality,and
foodsafety,buttheyhavehelpedtofuelabusinessexcellenceethic
withintheentirecorporationwhereunitsinAsia,SouthAmerica,
Europe,andAfrica,aswellasNorthAmerica,arenowlooking
morecloselyattheirprocessesandusingBaldrige-typecriteriato
achievecontinuousimprovementandtogivethemanedgeinthe
marketplace.Inshort,theBaldrigeCriteriaandmethodologyhave
beencriticalinhelpingusalignourbusinessstrategy,engageour
employees,andinspireourteamstoconstantlystrivetoimprove
everyday.
AtCargillweareintentonbuildingabalanced,diverse,andresilient
organization.Weaspiretobethegloballeaderinnourishing
people.Noneofthatispossiblewithouttrusttrustbetween
ourselvesandourcustomers,trustbetweenourselvesandother
stakeholders,trustthatwewilladheretoethicalstandards,andtrust
thatwewilldeliverqualityproductsanddowhatwesaywewilldo.
Underlyingthatnotionoftrustismakingsureonehasthemethods
andprocessesinplacetosustainablydeliveragainstever-increasing
expectationsandourdesireforcontinuousimprovement.The
BaldrigeCriteriaandmethodologyhavebeenfoundationalforus
inthatjourney.Baldrige 20/20 willshedlightonhowyouandyour
organizationmightbenetfromthisaswell.
Gregory R. Page is the chairman of the board and chief executive ofcer of Cargill,
Incorporated. He joined Cargill in 1974 as a trainee and, over the years, has held a number
of positions in the United States and overseas. He also serves as a member of the board of
directors of Eaton Corporation and Carlson, and he is immediate past-chair of the board of
Big Brothers Big Sisters of America.
Baldrige 20/20: An Executives Guide to the Criteria for Performance Excellence viii
Baldrige Performance Excellence Program
National Institute of Standards and Technology Department of
DearReader:
Asanexecutive,youmayaskthelogicalquestion,WhyshouldIreadthisbook?
Ihavetwoanswersforyou:becauseyouwantyourorganizationtosurviveand
thriveasarespectedorganizationtodayandarespectedorganizationintheyear
2020, and because 20/20 hindsight is easy but 20/20 foresight is not. Any leader
canassesswhereheorshehasbeen,aswellashisorhersuccessesandfailures,
buttoestablishthepathforfuturesuccess,trackprogress,andadjustcourseas
neededaremuchmorechallenging.TheBaldrigeAwardwinnerswhoseresults,
stories, and strategies are shared in this book provide guidance on achieving 20/20
foresight.Theyarecompetitivenessandinnovationleaders,andtheyareworth
emulating.
Theseareuncertaintimesforallenterprises.Thefuturewillbefullofstrategic
challengesasweadjusttotheshiftingdimensionsofourglobaleconomy.The
BaldrigeCriteriaforPerformanceExcellenceprovideaframeworkforaddressing
thesechallengesandassessingprogress.Theorganizationsinthisbookarerole
models,andtheirsuccesscanbereplicated,butyouhavetostartthejourney.This
bookwillhopefullyinspireyou,throughtheserolemodelssuccesses,tosay,I
canfacethefuturewithcondence,strategy,andstructure.
IhavehadthegoodfortuneofbeingassociatedwiththeBaldrigePerformance
ExcellenceProgramforalmost20years.Ihaveparticipatedintheevolutionof
theBaldrigeCriteriafromasetofcriteriaforproductqualitytoasetofcriteriafor
organizationalexcellence.Ihavehadtheprivilegeofseeingorganizationsgrow
andchangetomeetnewchallengesandopportunitiesandtoachieverole-model
status.Ihavehadthehonorofmeetingsomeofthemostwonderfulpeople,
visionaryleaders,andengagedemployeesourcountryhastooffer.Throughthis
book,Ihopethecourage,enthusiasm,andsuccessofthesepeopleandtheir
organizationswillexciteyoutoembarkonyourownBaldrigejourneyyourown
journeytoexcellenceandsustainability.
WhatledtheorganizationsinthisbooktopursueaBaldrigejourney?Someturned
toBaldrigeoutofcrisis.Theywereontheroadtoextinctionandlookingforatool
tosavetheirorganizations.TheyhadheardaboutBaldrigeandneededtodosomething
verydifferentfromtheircurrentbusinessmodel.Inrecentyears,mostorganizations
weredoingwellbutwerefacedwithanevermorecomplexenvironment.Theywere
lookingforasystemsapproachtoachieveasustainablecompetitiveadvantage.
AsIwritethisintroduction,IamonaightfromthefourthmeetingoftheBaldrige
ExecutiveFellowstotheTexasAwardforPerformanceExcellenceprogramsannual
conference.TheExecutiveFellowscametogetheralmostayearagoforayear-long
experiencetolearnfromBaldrigeAwardwinnersbywitnessingtheirperformance
rsthandattheirsitesandlearningfromtheirexecutives.Everysessionhasbeen
invigoratingforthemandme.TheTexasprogramwillshowcaseorganizationsona
Baldrigejourneythathavereceivedrecognitionatthestatelevel(70percentofBaldrige
AwardwinnersstartattheirstateorlocalBaldrige-basedprograms).Thisbookwillgive
youanintroductionthatdocumentswhysuchcompanies,largeandsmall;nonprots;
schools;andhealthcareorganizations,acrosstheUnitedStates,aremakingthislarger
commitmenttoaBaldrigejourney.
AreyoustillaskepticaboutBaldrige?Areyouwillingtoinvestafewhourstolookat
thepotentialofBaldrigeinyourorganizationandthenseeifitisforyou?Everyjourney
beginswithasinglestep.Takethisrststep,andthen,Ihope,youwillchallengeyour
organizationtoachieveexcellence!
Manypeopleandmanyorganizationscontributedtothisbook.Iwouldliketothank
twopeopleontheBaldrigeProgramstaffChristineSchaeferandDawnBaileywho
tookthelead,believedinthisproject,andtranslatedanideaintoreality.Ialsowould
liketothankalltheBaldrigeAwardwinnerswholetustelltheirstories.Thefamily
membersofSecretaryMalcolmBaldrige,forwhomthisprogramisnamed,havebeen
strongsupportersthroughoutthehistoryoftheprogram.AndnallyIwouldliketo
recognizeCurtReimann,theinitialdirectoroftheprogram,whoconceivedwhata
business-governmentpartnershipcouldachieveandwhowrotetherstsetofBaldrige
Criteriain1988.
HarryS.Hertz
Director,BaldrigePerformanceExcellenceProgram
Summer2011
Harry S. Hertz
Director, Baldrige Performance Excellence Program
Summer 2011
Introduction
Hindsight may be 20/20, but without a crystal ball, how can you
makesounddecisionsnowthatwillsteeryourorganizationtoward
successontheroadahead?
TheBaldrigeframeworkforperformanceexcellence
isavalidated
managementtooldesignedtohelporganizationsdojustthat.The
frameworktheCriteriaforPerformanceExcellence
canhelpyou
improveyourorganizationscurrentoperationsandachievelong-
termsustainability.Infact,the86organizationsthatreceivedthe
BaldrigeAwardbetween1980and2010haveproventhatapplying
theBaldrigeCriteriatothewaytheyruntheirbusinesseshasledto
betternancialresults;satised,loyalcustomers;improvedproducts
andservices;andanengagedworkforce.
Whilenomanagementsystemcanenableyoutopredictexactly
whatchallengeswillariseintheyearsordaystocome,using
theBaldrigeCriteriaasaframeworkforongoingself-assessment
andplanningwillmeanthatyouarebetterpreparedtomeet
evendaunting,unexpectedchallenges.Youwillhaveafocuson
results,andyouwillhavesystematicprocessesinplacethatare
effective,fullydeployed,agile,regularlyevaluatedforimprovement,
responsivetocustomerandstakeholderneeds,andintegratedinto
alloperationalareas.Yourorganizationwillalsohavetheabilityto
innovateforthefuture.
Introduction xi
TheCriteriafor
TheCriteriaforPerformanceExcellenceareasetofquestions
focusingonthecriticalaspectsofmanagementthathelpyouguide
yourorganizationtowardsuccessandsustainability.Award-winning
organizationsusetheCriteriaforself-assessment,forimprovement,
andasaframeworkforperformanceexcellence,integratingthe
Criteria into how they conduct business and/or care for patients or
helpstudentslearn.UsingtheCriteriatoassessyourorganization
canhelpyoualignresources;improvecommunication,productivity,
andeffectiveness;andachievestrategicgoals.
TheCriteriaarenotprescriptive;theywillnottellyouwhatto
dotogainresults.Instead,theyfocusonthedriversofsuccess
andinterrelatedcorevaluesandconcepts,frommanagement
byfacttovisionaryleadership,customer-drivenexcellence,and
managementforinnovation.TheprefaceoftheCriteria,alsocalled
theOrganizationalProle,consistsofintroductorysetsofquestions
andiswhereyoudetailyourcompanysstrategiccontext,including
challenges,advantages,andorganizationalrelationships.Because
theOrganizationalProlesetsacontextforyourorganization,the
Criteriacanapplytoeveryorganization,largeorsmall,acrossevery
sectoroftheU.S.economy.
TheSectionsofThisBook
Thenextsection,RepresentativeRoleModelsandData,explains
howrole-modelorganizationshaveappliedtheBaldrigeCriteria
forPerformanceExcellencetohowtheyruntheirbusinessesand
receivedahugereturnontheirinvestments.Dataareprovidedto
showimprovementsinnancialreturns,customerandworkforce
satisfaction,andgraduationrates,amongmanyothermeasures.
Dataarepresentedbysector:manufacturing,service,smallbusiness,
healthcare,education,andnonprot.Thesedataarecompiled
frompubliclyavailablesourcesintheyearsleadinguptothe
organizationsreceivingtheMalcolmBaldrigeNationalQuality
Award.
Baldrige 20/20: An Executives Guide to the Criteria for Performance Excellence xii
BaldrigeAwardwinnersdistinctiveexperiencesinusingtheCriteria
toattainperformanceexcellencearedetailedinAwardWinners
Journeys:HowBaldrigeLedThemtoExcellence,completewith
dosanddontstoguideyouifyoudecidetotakethechallenge.
InTheCriteria:FrameworkforPerformanceExcellence,youll
learnaboutthecriticalquestionsaskedwithintheseveninterrelated
areascoveredbythisleading-edgemanagementtool.Dataare
presentedhereonethicsandsustainability.
HowCantheBaldrigeProgramHelpYouNow?detailsthesteps
youmaywanttotakenowasyoubeginyourjourneytoperformance
excellenceusingtheCriteriaandthepracticesandguidanceof
BaldrigeAward-winningorganizations.
Finally,theappendix,ExamplesbyCriteriaCategory,providesa
samplingofBaldrigeAwardwinnersprocessesandresults(current
asoftheyeareachwontheaward)toexemplifyeachoftheseven
Criteriacategories.
Introduction xiii
Representative
RoleModelsandData
ByadoptingthesystemsperspectivebehindtheBaldrigeCriteria
forPerformanceExcellence,executivesofrole-modelorganizations
haveimprovedtheiroperationsandresultsandevenachieved
breakthroughgainsinperformance.Theorganizationsdescribedin
thissectionrepresentthebestofthebestintheU.S.manufacturing,
service,smallbusiness,healthcare,education,andnonprot
sectors.AllhavereceivedtheMalcolmBaldrigeNationalQuality
Award,thehighestlevelofrecognitionthataU.S.organization
canreceiveforperformanceexcellence,andallhaveusedthe
feedbackfromtheirBaldrigeassessmentstobuildontheirstrengths
andaddresstheirareasforimprovement.Aspartofapplyingforthe
BaldrigeAward,anapplicantreceivesafeedbackreportfromateam
oftrainedexaminersthatoutlinestheorganizationsstrengthsand
opportunitiesforimprovementfromtheteamsperspective.
ThefollowingpagescontainsomeoftheseBaldrigeAward
winnersstoriesandthedata thatmakethecaseforbeginningyour
organizationsBaldrigequesttowardexcellence.
Representative Role Models and Data 1
excel in them.
TheCaseforBaldrige:
ModelofExcellenceinManufacturing
The economic environment is difcult for Cargill Corn Milling,
as it is difcult for many manufacturing companies today. But . . .
by utilizing the processes and tools that weve learned from
Baldrige, were able to not only meet these challenges but actually
AlanWillits,PresidentandBusinessUnitLeader
CargillCornMilling
2008BaldrigeAwardwinner
CargillCornMillingNorthAmerica(CCM),basedinWayzata,
Minnesota,isabusinessunitwithinprivatelyheldCargill,Inc.,that
manufacturescorn-andsugar-basedproducts.CCMhasaworkforce
of2,321employeesanddelivers60-plusproductstomorethan
3,000customersinfood,feed,andfermentationmarkets.
Withrevenuesofmorethan$1billion
ayear,CCMsawitsearningsaftertaxes
nearlytripleinthefouryearspreceding
itsrecognitionasaBaldrigeAward
winnerin2008.Inaddition,itscostof
doingbusinessexpenseasapercentage
ofgrossprotdecreasedfromabout
35percentto30percentoverthree
years.Inthismeasure,Cargillexceeded
competitivebenchmarksbyatleast5
percentoverthatperiod.
CCMhasbeenusingtheBaldrigeCriteriaasaself-assessment
frameworksincetheearly1990s(seethestoryofitsperformance
excellencejourneyonpage56).Today,thecompanysfocuson
continuousimprovementisevidentinitsongoingeffortstoincrease
operationalreliabilityandeffectivenessthroughsuchapproachesas
real-timeandpredictivemonitoringofequipmenthealth,stringent
2 Baldrige 20/20: An Executives Guide to the Criteria for Performance Excellence
maintenance,andcarefulenergyusage.Asaresult,CCMmaintained
steadyper-bushelcostsfromscalyear(FY)2006toFY2008even
thoughenergy,chemical,andmaintenancecostsincreased50to80
percent,30percent,and10percent,respectively.
Goodprocessesdonotinsulateusfromreality,buttheydogive
usthestructuretorecoverintoughtimesandimproveingood
times,WillitsstatedattheBaldrigeProgramsannualQuestfor
Excellence
conferencein2009.Foodsafetyisacriticalelementof
ourmanufacturinganddeliveryprocesses.Wemakeingredientsthat
gointomanymajorfoodproducts.Forexample,onerailcarofhigh
fructosecansweetenapproximately2millioncansofsoftdrinks.In
somecases,ourproductwillbeonthegrocerystoreshelveswithin
36hoursofproduction.Thisrequiresrigidfoodsafetystandardsand
controlstoprotectallconsumers,includingemployeesandtheir
families.
Asthechartshows,CCMsfacilitieshavemaintainedscoresinthe
superiorrangeduringthird-partyaudits.Yet,saidWillits,Nomatter
howwellwescore,wecannevercompromiseourstandards.
A
u
d
i
t

S
c
o
r
e
Food Safety Scores

1000
900
800
700
Year 2 Year 3 Year 4 Year 5 Year 6
Superior Range
Excellent Range
Satisfactory Range
Year 1
Better
CCM Goal (Superior Range) CCM
TheProofIsintheData,Part1:
TheBaldrigeEffecton
Manufacturing
Since2000,tenmanufacturingorganizationshavereceivedthe
BaldrigeAward:
a subunit of a large independent manufacturer that designs, produces,
andassemblesdriveshaftsandrelatedcomponentsandprovidesrelated
services
a contract manufacturer of precision sheet metal and machined
componentsforthetelecommunications,semiconductor,andmedical
equipmentindustries
a printer and supplier of check products and related services to fnancial
institutions
a business unit that produces commercial and industrial radio products,
aswellascommunicationsandinformationtechnology
a company with a large market share in developing, manufacturing,
marketing,andservicingmedicaldevicesusedtodiagnoseandtreat
disease
a privately held corporation that manufactures frozen, ready-to-use food
products
a manufacturer of egg-based food products that is a subsidiary of a large,
privatelyheldinternationalcorporationprovidingfoodandagricultural
products
a manufacturer of corn- and sugar-based food products that is a business
unitofalarge,privatelyheldinternationalcorporationprovidingfood
andagriculturalproducts
a contractor that specializes in electrical, mechanical, and engineered
materialcomponentsfornationaldefensesystems
a manufacturer of packaged dog and cat food
IntheyearsleadinguptorecognitionasBaldrigeAwardwinners,
thesemanufacturersachievedveryfavorableresultsthatdirectly
improvedrevenues,customersatisfaction,andemployeesatisfaction,
aswellasotherperformancemeasures.Theseachievementsare
highlightedbelow.
I MP ROVE D FI NANCI AL RE S ULT S
a
Annual Revenue Increases
Average Annual Improvement: 48%
Globalsalesof$12.5billionintheyearitwontheBaldrige
Award.Inaddition,thecompanyincreaseditsrevenueoverthe
7yearsleadinguptoitsBaldrigeAwarddespitemarginalgrowth
intheU.S.petpopulationduringthesameperiod.(NestlPurina
PetCareCompany)
15-foldannualimprovementsincostsavingsfromsupply-chain
efforts,from$2millionto$65millionover2years(Honeywell
FederalManufacturing&Technologies[FM&T])
20%annualcostsavingsfromenergyconservation
improvementsfor3years(HoneywellFM&T)
a
Fivemanufacturersdidnotpubliclyreportacomparablemeasure.Theseaverage
improvementratesweresustainedannuallyoverthespeciedtimeperiods,whichreect
themostrecentresultsreportedbythemanufacturersintheyeareachreceivedthe
BaldrigeAward.
35%
74%
70%
14%
11%
A: 12 Years B: 5 Years C: 4 Years D: 5 Years E: 6 Years
Baldrige Award Winners and Time Periods
$23.5millionto$27millionannualcostsavingsfromdeployed
innovationsandincreasedproductivityfor3scalyears
(HoneywellFM&T)
Morethan$7.5millionannualcostsavingsfromimplementing
innovativeideasfor2years(CargillCornMilling)
SAT I S F I E D CUS TOME RS
Customer Satisfaction Levels
a
95%
96%
100%
88%
96%
80%
A B C D E F
Baldrige Award Winners
a
Fourmanufacturersdidnotpubliclyreportacomparablemeasure.Thelevelsshown
abovereectthelastyearreportedbeforetheaward.
1. ManufacturerAreportedcustomersatisfactionof95%orhigher
for 4 years, compared with the commercial industrys best-in-
classlevelsof78%to85%.
2. Manufacturer B reported 100% customer satisfaction rates for 4
yearsin3of5keyindicators(on-timedelivery,technicalsupport,
andcustomerserviceaccess)andratesabove90%foritsother2
keyindicators(productperformanceandproductfreshness).
3. ManufacturerCscustomersatisfactionrateincreased11%
annuallyfor3years.
4. In addition to overall customer satisfaction and repurchase/
recommend rates exceeding 88% for 4 years, 99% of
ManufacturerDscustomersweresatisedorverysatised
withcustomerserviceinthelastyearreported.
5. Insurveysofpartnerorganizations,ManufacturerEsustaineda
96%satisfactionratefor5years.
Baldrige 20/20: An Executives Guide to the Criteria for Performance Excellence 6
6. ManufacturerFsoverallcustomersatisfactionlevelsaveraged
morethan80%for3years,aperformancethatwasbetterthan
thatofallitscompetitors.
99.9%combinedquality/reliabilityratingsbytraditional
customersand98.4%to99%ratingsbynontraditional
customersfor3years(HoneywellFM&T)
96%customerloyaltycustomerswillingtocontinueworking
with the companyover 4 quarters, beating the commercial
industrysbest-in-classlevelof95%forsameperiod(Honeywell
FM&T)
23%annualdeclineincustomerincidentscomplaintsand
rejectionsper1,000shipmentsfrom10.5to3.3over3years
(CargillCornMilling)
Nearly12%annualdeclineincustomercomplaintsper
shipmentin3years.Thecompanyimprovedtheseresultsdespite
anincreaseinshipmentsof18%over5years.(CargillCorn
Milling)
From1996to2003,improvementfromthetop20to2ndina
rankingofcustomersatisfactionamongmorethan50medical
imagingcompanies.Inaddition,from2001to2010,this
companysglobalcustomersatisfactionratingsusingtheNet
Promoterscoringsystem,whichmeasurescustomerloyaltybased
onwillingnesstorefer,haveshownsteadyimprovementfrom
50%to63%,surpassingthebest-in-classbenchmarkof50%.
(MEDRAD,Inc.)
A SAT I S F I E D, S TABL E WORKF ORCE
Workforce Satisfaction Levels
a
80% 80%
83%
84%
95%
A B C D E
a
Fivemanufacturersdidnotpubliclyreportacomparablemeasure.Thelevelsshown
1. ManufacturerAstotalscoreonitsemployeesatisfactionsurvey
improved 14% over 4.5 years, or 3% annually, and the company
nearedworld-classlevelsoncoreemployeesatisfactionquestions
basedonanindustrybenchmarkprovidedbytheHoganCenter
forPerformanceExcellence.
2. ForManufacturerB,afteroverallemployeesatisfactionequaled
oroutperformedthatofthetop20companiesinHayGroup
employee surveys for at least 4 consecutive years, the company
switchedtoanewbenchmarkinordertopromotecontinuous
improvement.Overthenext2years,itsoverallemployee
satisfactionrateimprovedbyapproximately10percentage
points,approachingthebest-in-classstandardof90%.
3. OverallemployeesatisfactionscoresforManufacturerCwere
higherthanthoseofitscompetitors.Thecompanysustained
excellentlevelsfor5consecutiveyears.
4. ManufacturerDachieveda3%annualimprovementrateover6
years,withthemostcurrentresultsoutperformingthoseoftwo
peersidentiedasbenchmarksbythismanufacturer.
5. ManufacturerEsresultsonanemployeejobsatisfactionmeasure
improvedbymorethan10%over3years,anditsresultswerethe
bestinitscity.
72%employeesatisfactionscoresonfeelsappreciatedsurvey
item,comparedtothecommercial(private)industrysbest-
in-classlevelof67%;81%employeesatisfactionscoreson
managementlistenstoideas,comparedtothecommercial
industrysbest-in-classlevelof76%;72%employeesatisfaction
scoresonpositiveenvironment,comparedtothecommercial
industrysbest-in-classlevelof58%;80%employeesatisfaction
scoresoninformationprovidedtoemployees,comparedto
thecommercialindustrysbest-in-classlevelof65%(Honeywell
FM&T)
19%annualimprovementrateinoverallemployeeengagement
on company survey for 4 years (Cargill Corn Milling)
8%employeeturnoverrate,comparedto12%industryaverage
reportedbytheBureauofNationalAffairs(CargillCornMilling)
For 3 years, 8%annualdecreaseinworkforceturnover,which
waspreviouslyashighas30%annually(SunnyFreshFoods[now
CargillKitchenSolutions])
4%annualimprovementinworkforceturnoverfor5years,
betterthanabenchmarkbasedondatafromFortunemagazines
Top10PlacestoWorkin5of6years(MEDRAD,Inc.)
Improved Operations
95%operationalreliabilityeffectivenessratearatiobetween
actualproductionandcommercialdemand3percentage
pointsshyoftheworld-classbenchmarksetbytheSocietyof
MaintenanceandReliabilityProfessionals(CargillCornMilling)
Over 5 years,42%improvementinoperationalassethealth,
whichincreasedfrom60%healthyassetsto85%,theworld-class
level(CargillCornMilling)
TheCaseforBaldrige:
AServiceCompanysSuccessStory
Today, 1,700 not-for-prot hospitalsand the patients they serve
are the beneciaries of [a vision born from the Baldrige Criteria]. . . .
Together we have achieved billions of dollars in savingssavings that
strengthen the ability of hospitals to provide quality care.
Richard A. Norling, President/CEO
PremierInc.
PremierInc.isthelargesthealthcareallianceintheUnitedStates,
serving approximately 1,700 hospitals and more than 43,000
otherhealthcaresites,includingnursinghomesandambulatory
carecenters.Morethan900employeesserveatthehealthcare
alliancesheadquartersinCharlotte,NorthCarolina,andinofces
inSanDiego,California,andWashington,D.C.Toimprovepatient
outcomeswhilesafelyreducingthecostofcare,thePremierhealth
carealliancesthreebusinessunitsprovidememberswithgroup
purchasingandsupply-chainmanagement,insuranceandrisk
management,andinformaticsandperformanceimprovementtools.
Formedin1996fromthreesmalleralliances,thecompanyisnow
ownedbysome200nonprothealthcareprovidersandhealth
systemorganizations.
Thestrategicalliance
enablestheowners
toshareservicesand
programsaimedat
improvingthequality
andcost-effectiveness
ofclinicaloperations.
Fromthestart,Premier
Inc.sexecutivesseta
goalforitsmemberhospitalstodeliverthebest,mostcost-effective
careinthenationandforthehealthcarealliancetohaveamajor
inuenceonreshapinghealthcare.Tothatend,thealliancehas
focuseditsbusinessunitsondrivingmeasurableimprovementand
performancebreakthroughsindisciplineswheresuchopportunities
exist.Thesuccessofthisstrategyisevidentinthecompanys
nancialresults.Savingsandcashreturnstoitshospitalowners
increased from approximately $180 million to $804 million over
fouryears.Duringthatperiod,thecompanystotalrevenuerose
from approximately $410 million to over $500 million. Premier
Inc.alsoincreaseditsconsolidatedpretaxoperatingincomefrom
approximately $140 million to approximately $223 million, which
exceededorequaledthatofitslargestsinglecompetitorineachof
thoseyears.WhilePremierInc.soperatingmarginincreasedfrom
35percentto50percentoverthreeyearsandwashigherthanthe
topcompetitorsineachyear,itsoperatingexpensesremainedwell
belowthecompetitors.
Inadditiontoachievingimpressivenancialresults,thePremierhealth
carealliancehasbeenaleaderinestablishingandpromotingbest
practicesandmethodsfordrivingethicalconduct,transparency,and
accountabilitywithinthegrouppurchasingcommunity.Forexample,
PremierInc.createdtheHealthcareGroupPurchasingIndustry
Initiativetopromoteandmonitorbestethicalpracticesinpurchasing
forhospitalsandotherhealthcareproviders.Asaresultofitsefforts,
allthemajorhealthcareorganizationsinvolvedincooperative
purchasinghavecommittedtopubliclyreportingkeyinformation.
Atthe2007QuestforExcellenceconference,PremierInc.President
andCEORichardA.NorlingcharacterizedtheBaldrigeCriteriaas
usefultotheuniquelystructuredorganizationfromitsstart.Wehad
thegreatopportunity[in1996]tocreateanew-generationhealth
carealliance,goingwellbeyondthesharedservicesorganization,
Norlingsaid.Atthesametime,addedNorling,hiscompanyfaced
greatchallengesattheoutsetthechallengesyoumightexpectin
newlymergingorganizationsinachanginghealthcareandbusiness
environment.
Yet,likeotherorganizations,thePremierhealthcarealliance
reportedlyfoundtheCriteriaforPerformanceExcellencehelpfulin
achievingsuccessandapplicabletoitsuniquesituation.Embedding
BaldrigewascrucialtoourshapingPremiersuccessfullyfrom
thesebeginnings,saidNorling.ItisverytruethattheCriteria,not
beingprescriptive,applytoallkindsoforganizationsinallkindsof
situations.
TheBaldrigeEffectonService
Since2000,veserviceorganizationshavereceivedtheBaldrigeAward:
an operations and maintenance contractor for small to midsized
wastewaterandwater-treatmentsystems
a business unit that provides maintenance, modifcation, repair, and
trainingforaircraftcrewsandmaintenancestaff
the fnancial services business unit of a manufacturer of construction and
miningequipment,gasanddieselengines,andindustrialturbines
the contractor that operates and maintains the U.S. Strategic Petroleum
Reserve
the largest U.S. health care alliance
theseorganizationsachievedfavorableresultsthatdirectlyimproved
revenues,marketshare,andcustomersatisfaction,aswellasother
measures.Theseachievementsarehighlightedbelow.
I MP ROVE D F I NANCI AL RE S ULT S
a
Revenue Increases over 4 Years
B A C
100%
81%
22%
a
Twobusinessesintheservicesectordidnotpubliclyreportacomparablemeasure.These
resultsreectthemostrecenttimeperiodsreportedintheyeareachbusinessreceivedthe
BaldrigeAward.
1. ServiceBusinessArealizedthisgrowthinaatmarket,resulting
inalossofmarketshareforitscompetitors.
2. ForServiceBusinessB,totalrevenuegrewatanaverageannual
rateof15%overthisperiodwhileitstopcompetitorsrevenue
grewlessthan5%annually.
3. Inadditiontothisincreaseinrevenue,ServiceBusinessCs
consolidatedpretaxoperatingincomeincreasedatanaverage
annualrateofnearly15%.
Nearly7%peryearincreaseinmarketshareonaverageinthe
corebusinesssegmentover3years(OperationsManagement
International,Inc.[nowCH2MHILL])
34%increaseinassetsand54%increaseinprotover5
years,againstindustrydeclinesof21%and35%,respectively
(CaterpillarFinancialServicesCorporation-U.S.)
Customerawardfeesabout70%higherthanearnedbythe
previouscontractorover5years(DynMcDermottPetroleum
OperationsCompany[nowDMPetroleumOperationsCompany])
Nearly20%averageannualincreaseinconsolidatedpretax
operatingincome over 4 years (Premier Inc.)
a
75%
93%
94%
78%
89%
A B C D E
a
Thelevelsshownabovereectthelastyearreportedbeforetheaward.
1. ServiceBusinessAscustomersatisfactionlevelexceededthe
best-practicethresholdof60%forthesurvey.
2. CustomersatisfactioninServiceBusinessBslargestdivision
wasworld-classintheindustryandtheAmericanCustomer
SatisfactionIndex.
3. ServiceBusinessCscustomersatisfactionlevelreectsa27%
increaseover6years.
4. ServiceBusinessDscustomersatisfactionlevelwas6percentage
pointshigherthanthatofitsbestcompetitor.
5. ServiceBusinessEscustomersatisfactionlevelreectsa13%
increaseover3years.
95%ofcontractsrenewedbyitscustomersintheyear
theBaldrigeAwardwasreceived(OperationsManagement
International[nowCH2MHILL])
Highestaveragelengthofcustomerretentionintheindustry
intheyeartheBaldrigeAwardwasreceived(Operations
ManagementInternational[nowCH2MHILL])
95%customerloyaltyand97%customerretentionintheyear
theBaldrigeAwardwasreceived(PremierInc.)
A STABL E, SAT I S F I E D WORKF ORCE
Workforce Retention Levels
a
97%
94%
97% 97%
A B C D
a
Onebusinessintheservicesectordidnotpubliclyreportacomparablemeasure.The
levelsshownabovereectthelastyearreportedbeforetheaward.
39%decreaseinemployeeturnoverover5years,to16%,
againstanindustryaverageofjustover27%(Operations
ManagementInternational[nowCH2MHILL])
80%ofemployeesrecommendingthecompanyasagoodplace
toworkagainstanationalnormof55%intheyeartheBaldrige
Awardwasreceived(CaterpillarFinancialServicesCorporation-
U.S.)
Employeesatisfaction50percentagepointshigherthanthe
industrybenchmarksetbyBusinessResearchLaboratoryin
theyeartheBaldrigeAwardwasreceived(DynMcDermott
PetroleumOperationsCompany[nowDMPetroleumOperations
Company])
Excellent Service
22%averagedropinindustrialcustomersoperatingcostsover
2years(OperationsManagementInternational[nowCH2M
HILL])
Improvementfrom95%to99%indrawdownreadinessforthe
U.S.StrategicPetroleumReserveover6years;thecompanys
serviceperformancealsohasdistinguisheditastheglobal
benchmarkforcost-efciencyincrudeoilstoragesystems
(DynMcDermottPetroleumOperationsCompany[nowDM
PetroleumOperationsCompany])
Morethan$2.5billioninsavingsforpartnerhospitalsthrough
cooperativepurchasingandotherservicesofferedbythe
organizationover3years(PremierInc.)
TheCaseforBaldrige:
BenetsforaSmallBusiness
The Baldrige Award application process has provided our company
with many learning and continuous improvement opportunities,
making PRO-TEC better for the endeavor.
W.PaulWorstell,President(19972010)
PRO-TECCoatingCompany
Establishedin1990asajointventurebetweenUnitedStates
SteelCorporationandKobeSteelLtd.ofJapan,PRO-TECCoating
CompanyprovidescoatedsheetsteelprimarilytotheU.S.
automotiveindustryforuseinmanufacturingcars,trucks,andsport
utilityvehicles.PRO-TECs236employees,calledAssociates,work
inastate-of-the-art,730,000-square-footfacilitysurroundedbycorn
andsoybeaneldsinthesmall,ruraltownofLeipsic,Ohio.Whenit
receivedtheBaldrigeAward,PRO-TEChadbeenprotableformore
than a decade; sales reached $846 million in 2006.

SystemsreliabilityiscriticaltoPRO-TEC.Thecompanyhas
developedastringentpreventivemaintenanceprogramthatincludes
routinescheduledoutagesandcriticalsparepartsstoredon-site.
InthefouryearsbeforeitreceivedtheBaldrigeAward,PRO-TEC
hadledtheindustrybyoperating98percentofthetime.Over
thatperiod,PRO-TECproducednolessthan85percentofthe
UnitedStatesadvancedhigh-strengthsteelsupply.Revenueper
Associate reached approximately $4 million, nearly four times the
Industry Week90thpercentilebenchmark,demonstratingPRO-
TECsindustryleadershipinthisarea.Inacapital-intensiveindustry,
PRO-TECsreturnonassets,ameasureoflong-termviability,
sustainedanupwardtrendforfouryearsbeginningin2002.PRO-
TECconsistentlyfullleditscustomersexpectationsofqualityby
deliveringproductswithadefectrateoflessthan0.12percent.In
a2005and2006surveyofcustomerscoveringproductquality,
on-timedelivery,service,productdevelopment,andoverall
performancePRO-TECscoredbetterthanitscompetitioninall
categories.
PRO-TECisarolemodelforitsfocusonitsworkforce.Asthegure
belowshows,inthetwo-yearperiodbeforeitreceivedtheBaldrige
Award,PRO-TECmaintainedarecordableinjuryfrequencyoffewer
U.S. Occupational Health and Safety (OSHA)
a
Recordable Rate
(Associate Quality of Life)
P
e
r

2
0
0
,
0
0
0

M
a
n
-
H
o
u
r
s
5
4
3
2
1
0
Better
Year 1 Year 2 Year 3 Year 4 Year 5 Year-to-date
Year 6
Competitor 1 Competitor 2 PRO-TEC
a
TheOSHARecordableRateisanemployeeinjuryandillnessincidencemeasureusedto
evaluateorganizationalsafety.

Turnover Rate
(Associate Quality of Life)
8%
Better
6%
4%
2%
0%
PRO-TEC Involuntary Turnover
Industry Week 75th Benchmark
PRO-TEC Voluntary Turnover
T
u
r
n
o
v
e
r

R
a
t
e
Year 1 Year 2 Year 3 Year 4 Year 5 Year-to-date

Year 6
thantwoinjuriesper200,000man-hourslowerthantheindustry
benchmark.Turnoverrate(showninthegureabove),anotherkey
indicatorofPRO-TECAssociatesqualityoflife,waslessthan3
percentconsistentlybetterthanIndustry WeeksBestPlants75th-
percentilelevel.AsoftheyearitreceivedtheBaldrigeAward,PRO-
TEChadneverlaidoffanAssociate.
TheBaldrigeEffectonSmallBusiness
Since2000,12smallbusinesses,eachwith500orfeweremployees,
havereceivedtheBaldrigeAward:
an independent community bank
a quick-service restaurant
a printing, design, and mailing business
a chemical-specialty manufacturing and sales company
a screen-printing, photo-engraving, and chemical-etching business
a luxury car dealership
a service business providing corrosion protection systems
a joint venture that provides coated sheet steel
a family-owned catalog and Internet retailer offering shooting, reloading,
gunsmithing,andhuntingproducts
a consulting frm offering engineering, architecture, environmental
science,planning,programmanagement,andconstructionservices
a management company that has created two fast-casual restaurant
conceptsandimplementedtheseatsevenlocations
a health care consulting frm
FollowingaresomefavorableBaldrigeeffectsforthesesmall
businesseshighlightedimprovementsorhighlevelsachieved
onkeymeasuresoverthethreeyearsormoreleadinguptoeach
organizationsrole-modelrecognition.
Increasing Sales, Prots, and Market Share
Morethan40%annualgrossprot,exceedingtheindustry
standard(K&NManagement)
Morethan30%annualgrowthinrevenuesforthepast9years,
exceedingtheAssociationofManagementConsultingFirms
averageof10%annualgrowth(StuderGroup)
Annualrevenuegrowthof12%to16% for the past 4 years,
despiteminimalgrowthintheengineeringindustry(Freeseand
NicholsInc.)
93%increaseinsalesover6years(MESAProducts,Inc.)
25%salesgrowthratein1year,comparedto10%forits
competitor;300%increaseinnetincomeasapercentageof
salesover5years(MidwayUSA)
51%increaseingrossprotpercentage over 4 years and 30%
increaseinnewandpreownedcarssold over 4 years; 11%
growthinshareofluxurycarmarketatthePlanodealershipover
3years(ParkPlaceLexus)
11%increaseinprotabilityover6years(TexasNameplate
Company,Inc.)
48%growthinnetincome over 4 years; 5%growthinshareof
primarycustomersover2years(LosAlamosNationalBank)
172%improvementinmarketshareinitsprimaryservicearea
over 4 years; 72%growthinsalesover 4 years, a gain held in
2002,whentheindustrydeclined6.6%(Branch-SmithPrinting
Division)
400%increaseinsalesover12years(Stoner)
Almostdoublingofmarketshareover7years(PalsSudden
Service)
I NCRE AS I NG CUS TOME R
SAT I S FACT I ON AND RE T E NT I ON
a
93%
87%
98%
87%
96%
84%
92%
99%
A B C D E F G H
a
Foursmallbusinessesdidnotpubliclyreportacomparablemeasure.Thelevelsshown
1. CustomersatisfactionforSmallBusinessAwasgreaterthan90%
for3years.
2. SmallBusinessBrealizeda7%gainincustomersatisfaction
over3years.
3. Customer satisfaction for Small Business C was 94% or higher for
5years.SmallBusinessCscustomersatisfactionlevelrepresents
a 2%gain over 4 years.
4. For Small Business D, customer satisfaction increased 4% over 6
years.
5. ForSmallBusinessE,customersatisfactionincreased5%over6
years.
6. CustomersatisfactionwithSmallBusinessFexceededthe
nationalaverageandwashigherthansatisfactionwithallother
areainstitutionsofferingthesameservice.
7. SmallBusinessGsresultabovereectstheaverageofresponses
tothe9questionsonthecompanysclientsurvey.Thisbusiness
realized a nearly 40% increase over 3 years in survey ratings of
itsstaffbysatisedclients.
8. SmallBusinessHs99%exceededitsbestcompetitorsaverage
ratingof85%.
Customer Retention Levels
a
70%
99% 100%
77%
A B C D
a
Eightsmallbusinessesdidnotpubliclyreportacomparablemeasure.Thelevelsshown
1. SmallBusinessAsustaineda70%retentionrateforitstop50
customersformorethan10years.
2. Over5years,SmallBusinessBretainedanaverageof98%ofits
topcustomers,whoaccountedforover60%ofitsbusiness.
3. SmallBusinessCimprovedcustomerretention16%over6years.
4. Small Business D improved customer retention 14% over 4
years.
Improving Employee Measures
37%improvementinemployeesatisfactionover6years(Stoner)
28%improvementinemployeesatisfactionover5yearsand
12%increaseintraininghoursperemployeeover2years
(Branch-SmithPrintingDivision)
37%decreaseinturnoverrateover5years;itsturnoverratein
theyearbeforeitreceivedtheBaldrigeAwardwas127%when
itsbestcompetitorsturnoverratetopped300%(PalsSudden
Service)
11%improvementinemployeesatisfactionover2years;more
than80%oftheworkforcecross-trainedtoperformmultiple
tasksacrossdepartments(TexasNameplateCompany,Inc.)
1,533%improvementintheaveragetraininghoursper
employee over 4 years; 48%improvementinturnoverrelativeto
satisfactionover8years(ParkPlaceLexus)
38%decreaseinemployeeturnoverover5yearsand50%
improvementinattendanceattrainingover2years(LosAlamos
NationalBank)
78%improvementintraininginvestmentindollars over 4 years
(MESAProducts,Inc.)
37%improvementinemployeesatisfactionandengagement
over6years(MidwayUSA)
Decreases in Voluntary Employee Turnover
a
-62%
-71%
-82%
-55%
-56%
A B C D E
3 Years 6 Years 6 Years 4 Years 3 Years
a
Sevensmallbusinessesdidnotpubliclyreportacomparablemeasure.Theseresultsreect
themostrecenttimeperiodsreportedbythesmallbusinessesintheyeareachreceivedthe
BaldrigeAward.
Reducing Defects and Nonconformances
33%improvementinpriceofnonconformancesaspercentageof
salesover6years(Branch-SmithPrintingDivision)
54%decreaseinwarehouseerrors/ordersbilledover5years
(Stoner)
40%improvementinproductreturnrateover6years
(MidwayUSA)
64%improvementinproductnonconformitywithspecications,
asapercentageofsalesover6years(TexasNameplateCompany,
Inc.)
Ensuring On-Time Delivery
97%on-timeshipping, which represents a 4% improvement over
5years(MESAProducts,Inc.)
98%same-dayshipping,whichrepresentsa1%improvement
over7yearswhileimprovingthecut-offtimeforguaranteed
same-dayshippingfrom2p.m.to6p.m.(MidwayUSA)
100%ordersshippedsameday,whichrepresentsan8%
improvement over 4 years (Stoner)
98%on-timedelivery,whichrepresentsa3%improvementover
3years(Branch-SmithPrintingDivision)
Increasing Productivity and Return on Assets
30%increaseinorderhandoutspeedover6years;salesper
laborhourimprovedbyabout$6over3years(PalsSudden
Service)
17%improvementinproductivityasmeasuredbyrevenueper
employeeover7years(MESAProducts,Inc.)
150%improvementinmanufacturingproductivityover12
years;33%increaseinweeklyaverageoutputofaerosolcan
productsover5years;39%returnonassetsexceedstheindustry
average by 29% and the best competitor by 14% (Stoner)
TheCaseforBaldrige:
AHealthCareRoleModel
As soon as you become a Baldrige organization, it will
cost you less to run your business, and your outcomes
will be better.
RulonStacey,President
PoudreValleyHealthSystem
PoudreValleyHealthSystem(PVHS)isaprivate,nonprothealth
careorganizationbasedinFortCollins,Colorado.Withacurrent
workforceof5,300,theorganizationprovidesafullspectrumof
healthcareservicestoresidentsofnorthernColorado,western
Nebraska,andsouthernWyomingthroughtwohospitals(Poudre
ValleyHospitalinFortCollinsandtheMedicalCenteroftheRockies
inLoveland,Colorado)andanetworkofclinicsandothercare
facilities.
PVHSstandsoutasarolemodelinitssector.
Itrankedinthenationaltop10%ofsimilar
organizationsforlowmortalityandhigh
satisfactionamongpatients,inthetop3%for
employeesatisfaction,andinthetop1%for
physicianloyalty.Foreachoftheveyears
leadinguptoitsBaldrigeAward,Thomson
ReutersnamedPVHSaTop100Hospital,
andModern HealthcarenamedPVHSone
oftheTop100BestPlacestoWork.Itsexcellenceinnursingwas
recognizedbydesignationasaMagnethospitalbytheAmerican
NursesCredentialingCenter,andtheNationalDatabaseofNursing
QualityIndicatorshonoredPVHSwiththeOutstandingNursing
QualityAward.PVHSalsoremainedcompetitivelypricedinits
regionalhealthcaremarket,generating$1billioninannualrevenue.
Ourpatientsandcommunitytoldustheywanthigh-quality,
low-costcare.TheMalcolmBaldrigeNationalQualityAward
demonstratesthatwearegivingourcustomerswhattheyaskedfor
andthatwecandosoforyearstocome,saidStacey.Throughthe
Baldrigeprocess,wevelearnedthatweneedtolearn.Thatsoneof
thebestpartsaboutBaldrige.
IntheyearsprecedingitsBaldrigeAward,PVHSconsistently
maintainedcompetitivehealthcarecostsrelativetolocal
competitorswithasimilarpatientbaseandtoaveragecostsinthe
Denvermetropolitanarea,whichisPVHSssecondaryservicearea.
In2006,theaveragePVHSchargewas$2,000lowerthanthatof
itsmaincompetitorand$7,000lowerthantheaveragechargein
theDenvermetropolitanarea.Whilecommittedtobeingalow-
costprovideranddespitedecliningreimbursements,PoudreValley
Hospitaldramaticallyincreaseditsprotperdischargetoalevel
greaterthanthatofthetop10percentofU.S.hospitals,asthe
gurebelowshows.TheseresultshelpPVHSachieveitsmissionof
remaininganindependent,nonprotorganization.
Profit per Discharge
D
o
l
l
a
r
s
Better
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year-to-date
Year 8
(1st Quarter)
Competitor Poudre Valley Hospital
U.S. Top 10% U.S. Top 25%
TheBaldrigeEffectonHealthCare
Since2002,whentherstorganizationreceivedtheBaldrigeAward
inthehealthcarecategory,12organizationshavebeensohonored:
a private health care system that operates 17 acute care hospitals in
Missouri,Illinois,Wisconsin,andOklahoma
the largest hospital in the Kansas City, Missouri, metropolitan area
the largest health care system in the Florida Panhandle
a private, nonproft acute care hospital in New Jersey that includes
environmentstopromotehealingthroughartandnature
an all-private-room facility located on a 28-acre urban campus in Michigan
the largest rural, nonproft hospital in the United States
an integrated health care system in Wisconsin and Illinois
San Diego Countys largest integrated health care delivery system
a locally owned health care organization serving
residentsofColorado,Nebraska,andWyoming
a nonproft New Jersey health care system
a community-based health system serving
residentsofMissouri,Kansas,Nebraska,andIowa
an acute-care medical facility in suburban
Chicagothatispartofoneofthenationstop-ten
healthsystems
Intheyearsleadinguptotheirrecognitionas
BaldrigeAwardwinners,theseorganizations
achievedthebenecialresultshighlighted
below.
Decreasing Mortality Rates
24%reductionover3yearsinrisk-adjusted
mortalityrate(overallmortalitydividedby
expectedmortalitywhere1isthestandard),
exceedingthetop-decilelevelforthis
hospitalssix-countyregionasmeasuredby
ThomsonReuters(AdvocateGoodSamaritan
Hospital)
25%reductioninoverallmortalityrateover5years,aratebetter
thanthestatetopquartileandequaltotheAgencyforHealthcare
ResearchandQualitybestcomparisons(RobertWoodJohnson
UniversityHospitalHamilton)
23%reductioninoverallmortalityrateover2years(Heartland
Health)
20%reductioninoverallmortalityrateover2years,arate
withintheCareScience(arisk-adjusteddatabase)best-practice
levelthatisdenedasthetop15%ofU.S.facilities(Bronson
MethodistHospital)
57%reductioninmortalityresultingfrompneumoniaover3
years.Thedecreasedmortalityraterepresentsapproximately100
fewerpneumonia-relateddeaths.(NorthMississippiMedical
Center)
95%reductioninmortalityresultingfromacutemyocardial
infarctionandnearly61%reductioninmortalityresulting
fromcongestiveheartfailureover 4 years. The reduced rate was
betterthantheQuadramed(anationalorganizationproviding
comparativestatisticsforclinicaloperations)expectedrate.
(RobertWoodJohnsonUniversityHospitalHamilton)
38%reductioninmortalityresultingfromcongestiveheart
failureover 4 years (Mercy Health System)
33%reductioninmortalityresultingfromcongestiveheart
failureover 4 years. The reduced rate was better than the Premier
healthcarealliancespredictedrate.(AtlantiCare)
Rising Revenue and Market Share
24%increaseinnetoperatingmarginover2years,exceeding
thatofAA-ratedhospitals.Theoperatingmarginlevelrepresents
top-decile(intheupper10%)performanceintheindustry.
(AdvocateGoodSamaritanHospital)
Nearly71%increaseinnetrevenueover5yearsandastable
MoodysA2bondratingover11years(MercyHealthSystem)
11%compoundannualgrowthrateinsystemrevenuesfor9
years.Thisrepresentsa133%overallimprovementornearly17%
annualimprovementrate.(AtlantiCare)
Top10%ofU.S.hospitalsfortotalmarginandoperatingmargin
in2009andmaintainedMoodysandFitchbondratingsofA
and A2 for 4 years (Heartland Health)
17%increaseinoverallmarketshareforitsprimaryservicearea
over5years(BronsonMethodistHospital)
Marketleadershippositionwith30%marketsharefor
cardiology,surgery,andoncology(RobertWoodJohnson
UniversityHospitalHamilton)
65%increaseintotalrevenueover 4 years. At the time it
receivedtheBaldrigeAward,theorganizationoutperformed
theCouncilofTeachingHospitalstopquartileinnancial
performanceandrankedinthetop5%nationallyintotalmargin.
(SaintLukesHospitalofKansasCity)
56%increaseinnetrevenueover5years.Thisrepresents
anaverageannualgrowthrateofmorethan11%.(Sharp
HealthCare)
PAT I E NT S MORE S AT I S F I E D
Outpatient Satisfaction Levels and Gains
a
97%
94%
96%
92%
97%
A B C D E
1% Gain 4% Gain 5% Gain 53% Gain 10% Gain
Baldrige Award Winners, Gains, and Time Periods
a
Sevenorganizationsinthehealthcaresectordidnotpubliclyreportacomparable
measure.Thelevelsshownabovereectthelastyearreportedbeforetheaward.
Inpatient Satisfaction Levels and Gains
a
97%
90%
95%
89%
94%
A B C D E
2% Gain 10% Gain <1% Gain 32% Gain 1% Gain
Baldrige Award Winners, Gains, and Time Periods
a
Sevenorganizationsinthehealthcaresectordidnotpubliclyreportacomparable
measure.Thelevelsshownabovereectthelastyearreportedbeforetheaward.
Rankingasthenationsno.1hospitalforoverallpatient
satisfactionbyAvatar(apatientsatisfactionsurveymeasurement
tooladministeredbyanindependentthirdparty)intheyear
beforetheorganizationasawholereceivedtheBaldrigeAward
(PoudreValleyHealthSystemsMedicalCenteroftheRockies).
Thepatientscoresofthesystemstwohospitalssurpassthe
nationaltop10%,accordingtotheCenterforMedicareand
MedicaidServices.(PoudreValleyHealthSystem)
725%improvementinmedical-grouppatientsatisfactionwith
urgentcareand100%improvementinoverallmedical-group
patientsatisfactionover5years(SharpHealthCare)
DE CRE AS I NG EMP L OYE E
TURNOVE R AND VACANCY RAT E S
Decreases in Employee Turnover
a
A B C D E F G H I J
3 Years 5 Years 6 Years 2 Years 6 Years 2 Years 4 Years 3 Years 6 Years 2 Years
-38%
-42%
-55%
-65%
-63%
-75%
-15%
-21%
-20%
-40%
a
Twoorganizationsinthehealthcaresectordidnotpubliclyreportacomparablemeasure.
Theseresultsreectthemostrecenttimeperiodsreportedbytheorganizationsintheyear
eachreceivedtheBaldrigeAward.
Decreasesinemployeevacancyrates:68%decreaseover3
years(RobertWoodJohnsonUniversityHospitalHamilton);
nearly31%decreaseover2years(NorthMississippiMedical
Center);34%decreaseover5years(MercyHealthSystem);33%
decreaseover 4 years (AtlantiCare)
Improvementsinnursevacancy,retention,orturnoverrates:
nearly50%decreaseover2years(AdvocateGoodSamaritan
Hospital,registerednurse[RN]voluntaryturnoverrate);nearly
67%decreaseover 4 years (AtlantiCare, vacancy rate); nearly
28%decreaseover3years(BronsonMethodistHospital,vacancy
rate);37%decreaseover5years(MercyHealthSystem,vacancy
rate);33%decreaseover 4 years (Poudre Valley Health System,
vacancyrate);67%increaseover2years(RobertWoodJohnson
UniversityHospital,retentionrate);20%decreaseover3years
(SSMHealthCare,turnoverrate)
Employees and Physicians More Satised
Nearly19%improvementinemployeesatisfaction,to4.75out
of5ona5-pointscaleover 4 years(BronsonMethodistHospital)
36%improvementinemployeesatisfaction over 4 years.
SatisfactionlevelswereequaltothePressGaneybenchmarkin
theyearbeforetheorganizationreceivedtheBaldrigeAward.
(RobertWoodJohnsonUniversityHospitalHamilton)
11%improvementinemployeesatisfaction over 4 years (Saint
LukesHospitalofKansasCity)
Nearly47%improvementinphysiciansatisfactionover3years.
In2005,thesatisfactionofphysicianswas58%;in2007,the
focuswaschangedtoqualityofcareasperceivedbyphysicians,
andthephysiciansatisfactionlevelreached85%in2008.
(AtlantiCare)
Nearly20%improvementinphysiciansatisfactionover2years.
PhysiciansratedtheorganizationbetterthantheProfessional
ResearchConsultants,Inc.,normfornursingcare,responsiveness,
dischargepolicy,andeaseofscheduling.(BronsonMethodist
Hospital)
99%overallphysiciansatisfactionaswellassatisfactionwith
easeofpracticeandleadershipasmeasuredbyPressGaney,
intheyeartheorganizationreceivedtheBaldrigeAward(North
MississippiMedicalCenter)
Nationaltop10%ranking,accordingtoManagementScience
Association(anindependentnationalrmthatconducts
employeeopinionsurveys),on11of16employeesatisfaction
areas,includingjobsatisfaction,seniormanagementgroup,
communications,pay,benets,andperformancemanagement
(PoudreValleyHealthSystem)
90%orhigherfavorableresponsesonAvatarPhysician
SatisfactionSurvey(ameasurementtooladministeredbyan
independent third party) for 4 consecutive years, as well as a
physicianloyaltyscoreinthenational99thpercentiletheyear
itreceivedtheBaldrigeAward,asmeasuredbyGallup(Poudre
ValleyHealthSystem)
Reduction in Days in Accounts
Receivable and Patient Length of Stay
a
57%overalldeclineinnetdaysinaccountsreceivableover3
years(SaintLukesHospitalofKansasCity);24%overalldecline
innetdaysinaccountsreceivableover5years(MercyHealth
System);22%overalldeclineinnetdaysinaccountsreceivable
over 4 years (North Mississippi Medical Center)
25%overalldeclineingrossdaysinaccountsreceivableover2
years(BronsonMethodistHospital)
Nearly28%overallimprovementinlengthofstay(Medicare)
over3years(PoudreValleyHealthSystem);nearly16%
overallimprovementinlength of stay (Medicare) over 4 years
(AtlantiCare)
a
Reducinglengthofstay,acommonhealth-caresectorqualitymeasure,reduceshospital
costsandalsomayreduceapatientsriskofhospital-acquiredinfections.
Increasing Training and Volunteer Hours
260%increaseintraininghoursperfull-timeequivalent(FTE)
over3years(BronsonMethodistHospital)
163%increaseintraininghoursover6years(MercyHealth
System);nearly11%increaseintraininghoursover2years(SSM
HealthCare)
Nearly44%increaseintraininghoursperFTEover2years
(NorthMississippiMedicalCenter)
225%increaseincommunity-donatedvolunteerhoursover 4
years(RobertWoodJohnsonUniversityHospitalHamilton)
86%increaseincommunity-donatedvolunteerhoursover2
years(BronsonMethodistHospital)
Increasing Charity Care
a
Anincreaseofmorethan50%incharityanduncompensated
careover3years(HeartlandHealth)
Morethan$181millionincommunitybenets,includingunder-
anduncompensatedcare,providedintheyearbeforeitreceived
theBaldrigeAward(SharpHealthCare)
7%percentoftotalrevenuesdonatedtoindigentcarein
theyeartheorganizationreceivedtheBaldrigeAward.The
organizationanditsparentaretheleadingprovidersof
uncompensatedcareintheirmarketarea.(BaptistHospital,Inc.)
$62millioninunreimbursedcareforpatientsenrolledin
government-assistanceprogramsabsorbedand$1.9millionin
charitycareprovidedinthe2yearsbeforetheorganization
receivedtheBaldrigeAward(PoudreValleyHealthSystem)
56%ofthepreviousyearsoperatingmarginallocatedtothe
careofpeoplewhocannotpay,intheyeartheorganization
receivedtheBaldrigeAward(SSMHealthCare)
49%increaseinuncompensatedcarecostsasapercentage
oftotalexpensesover3years;morethan$58millionin
uncompensatedcareprovidedintheyearbeforetheorganization
receivedtheBaldrigeAward(NorthMississippiMedicalCenter)
88%increaseincharitycareover5years;1.8%ofhospitaland
2%ofitsclinicrevenueallocatedtocharitycareintheyearthe
organizationreceivedtheBaldrigeAward(MercyHealthSystem)
90%ofthefreecareinitscountyprovidedintheyearbefore
theorganizationreceivedtheBaldrigeAward;25%increasein
freecareprovided at cost over 4 years at AtlantiCareRegional
MedicalCenter(AtlantiCare)
a
Increasingcharitycaremaybeonewaythathospitalsdemonstratehowtheysupporttheir
keycommunities.
TheCaseforBaldrige:
RoleModelsinEducation
K-12
Baldrige [offers] the only education Criteria that actually [enable
a school system] to compare itself against other organizations . . .
that show you what world-class looks like.
Dr.TerryHolliday,Superintendent(20022009)
Iredell-StatesvilleSchools
Iredell-StatesvilleSchools(I-SS)isakindergarten-through-12th-
grade(K-12)publicschoolsystemlocatedinsouthwesternNorth
Carolina.AlthoughI-SSsbudgetandper-pupilexpendituresranked
107of115districtsinNorthCarolina,thedistrictoutperformed
comparativedistrictsinacademicsatthestateandnationallevels.
I-SSsupportsitsvisiontoimprovestudentlearningthroughits
corevaluesfocusingonstudentlearning,continuousimprovement,
managementbyfact,andresults.UseoftheBaldrigeCriteriahas
promotedfact-based,data-drivendecision
makingtosupportlearningandcontinuous
improvementthroughouttheschoolsystem.
SeveralyearsbeforereceivingtheBaldrige
Award,I-SSbegantouseaPlan-Do-Study-Act
(PDSA)processdistrictwidetoraisestudents
SATscores.Whenscoresdonotmeettargets,
thedistrictusesthePDSAcycletoidentify
improvementopportunitiesandimplement
changes.Staffmembersreviewclassand
individualstudentdata,assessprogresstoward
goals,andmodifyimprovementplans.Asaresult
ofthefocusoncontinuousimprovement,SAT
scoresinthedistrict(showninthegurebelow)
steadilyincreased,outperformingaveragepeer
district,state,andnationalscores.Thedistricts
High School SAT Test Scores
School Year 2 School Year 1
1080
1040
1000
960
920
880
School Year 3 School Year 4
T
o
t
a
l

A
v
e
r
a
g
e

S
A
T

S
c
o
r
e
s
I-SS District Average Peer District Average

State Average National Average
totalaverageSATscoreof1056in2008wasbetterthanthatof
thepeerdistrict(995),thestate(1007),andthenation(1017).In
addition,intheyearsprecedingI-SSsreceiptoftheBaldrigeAward,
29percentofstudentsscored3orhigheronatleastoneAdvanced
Placement(AP)examduringhighschool,almostdoublethenational
rate.
I-SSalsosawstrongimprovementsinoverallstudentachievement
andreading.Oversixyears,I-SSrosefrom55thto9thplacein
studentachievementamongNorthCarolinasmorethan100school
districts.TheyearbeforereceivingtheBaldrigeAward,thedistricts
studentsachieved90.6percentprociencyonthestatereading
assessmentandnarrowedthereadingprociencygapbetween
African-Americanchildrenandallstudentsfrom23percentto12.3
percent.Thereadingprociencygapbetweenexceptionalchildren
and all students decreased from 42 percent to 21 percent during the
sameperiod.Inclosingthesegaps,I-SSoutperformedotherdistricts
inthestate.
OtherresultsofI-SSsimprovementjourneyincludeincreasesinthe
graduationratefrom61percentto81percent(rankingI-SS11th
inNorthCarolina)andintheaverageSATscorefrom991to1056
(rankingI-SS7thinNorthCarolina),aswellasadropoutratethat
improvedfromoneoftheworsttooneofthetenbestinthestate.
Higher Education
This presidential recognition honors Richland Colleges serious
commitment to and passion for student learning success and our
vital mission of teaching, learning, and building a sustainable local
and world community.
Dr.StephenK.Mittelstet,President(19792009)
RichlandCollege
RichlandCollegeisatwo-yearcommunitycollegeinDallas,Texas.
Establishedin1972,thecollegeservesaculturallydiversestudent
body that includes approximately 14,500 students pursuing college
creditsandnearly6,000continuing-educationstudents.Richland
College employs nearly 150 full-time faculty, more than 400 full-
timesupportstaffmembersandadministrators,and811part-time
facultymembers.In2005,itbecametherstcommunitycollegeto
receivetheBaldrigeAward.
RichlandCollegesmissionconveyedinthestatementTeaching,
Learning,CommunityBuildingistoofferprogramsandservices
thatenableitsstudentstoachievetheireducationalgoalsand
becomelifelonglearners,communitybuilders,andglobalcitizens.
Unlikepeercommunitycolleges,RichlandCollegedesignsthe
bulkofitsprogramsandservicestomeettheneedsofstudents
whointendtofurther
theireducationata
four-yearcollegeor
university.Ameasure
ofthecollegessuccess
isthusthenumberof
studentswhocomplete
thecorecurriculum
theyneedfortransfer
tofour-yearinstitutions.
Thisnumbergrewfrom
500to1,660overthree
years,outperforming
threeofRichlandspeer
colleges.Inaddition,intheveyearsbeforeRichlandreceivedthe
BaldrigeAward,thenumberofcreditstudentsenrolledincreasedby
approximately16percent,agrowthratethatwashigherthanthatfor
alllocalcompetitorsineachoftheveyears.Atthesametime,on
thefoursatisfactionmeasuresthatstudentsratedasmostimportant
relatedtoclassscheduling,classtimeconvenience,varietyof
courses,andintellectualgrowthRichlandCollegesurpassedthe
normonthenationalNoelLevitzStudentSatisfactionSurveyover
severalconsecutiveyears.
Tomakegettinganeducationasconvenientaspossibleforits
students(withanaverageageof28),RichlandCollegeoffered
alternativestotraditionalclassroomscheduling,includingonline,
ex-term,andfast-trackclassesandeveningandweekendcourses.
Thecollegealsomaintainsacloserelationshipwiththelocal
businesscommunitytoensurethatitstechnical,occupational,and
workforcejobskillsprogramsmeetbothstudentsneedsandlocal
employersneedsforaskilledworkforce.
Asanotherindicatorofthesuccessofthecollegeanditsstudents,
theemploymentrateforstudentstakingtechnicaltrainingor
workforcedevelopmentclassesremainedatornear100percent
forthesevenyearsbeforeRichlandCollegereceivedtheBaldrige
Award.Inanefforttoimproveitsownanditspeersresults,the
collegehelpedestablishandparticipatesinorganizationssuchasthe
LeagueforInnovationintheCommunityCollegeandtheContinuous
QualityImprovementNetwork.
TheBaldrigeEffectonEducation
Since2001,whentherstorganizationsreceivedtheBaldrigeAward
intheeducationcategory,nineorganizationshavebeensohonored;
sixarepublicschooldistricts:
a K-12th-grade public school program located 20 miles north of New
YorkCity
an Alaska standards-based program from preschool to beyond high
schoolgraduationthatteachesstudentsscatteredthroughout22,000
squaremilesofisolatedandremoteareas
a university in the University of Wisconsin System
a K-8th-grade public school system in a northwestern Chicago suburb
an undergraduate-only business school within the University of Northern
Colorado
a school district in Oklahoma that serves pre-K-12th-grade students
a community college in the Dallas County Community College District
a K-12th-grade public school system located in southwestern North
Carolina
a large, ethnically diverse K-12th-grade public school system in a
MarylandsuburbofWashington,D.C.
Intheyearsleadinguptorole-modelrecognitionasBaldrigeAward
winners,thesedistrictsandinstitutionsachievedveryfavorable
resultsthatdirectlyimprovedreadingandmathematicsprociency,
graduationrates,andturnover,aswellasothermeasures.These
achievementsarehighlightedbelow.
HI GH AND RI S I NG
RE ADI NG PROF I CI E NCY ( K- 12)
Reading Proficiency Rates
a
91%
94%
89%
75%
95%
A B C D E
Grades 38 Grade 3 Grade 3 Grade 3 Grade 4
Baldrige Award Winners and Grade Levels
a
Onedistrictdidnotpubliclyreportacomparablemeasure;seenote6below.Thelevels
shownabovereectthelastyearreportedbyeachschooldistrictbeforeitreceivedthe
BaldrigeAward.
1. SchoolDistrictAclosedthereadingprociencygapbetween
African-Americanstudentsandallstudentsfrom23%to12%
over6yearsandclosedthegapbetweenstudentswithspecial
needs and all students from 42% to 21% during the same period.
2. For5years,SchoolDistrictBsawa6%averageannual
improvementingrade3readingprociency.
3. Grade 3 reading profciency improved in each of the 4 years
beforeSchoolDistrictCreceivedtheBaldrigeAward.Thatyear,
the districts grade 2 reading profciency reached 84% against
thenationalaverageof50%andgained10percentagepoints
overtheprevious2years.
4. SchoolDistrictDsaveragestudentscoresinreadingona
nationalstandardizedachievementtestrosefromthe28thto
the 71st percentile over 4 years. In addition, its average scores
inlanguageartsforthetestrosefromthe26thtothe72nd
percentileoverthesameperiod.
5. School District Es grade 4 English/language arts profciency rate
averaged96%for6consecutiveyears.
6. WhilethesixthdistricttowintheBaldrigeAwardtodatedidnot
includeasimilarmeasureonreadingprociencyinitsaward
application,itreportedthatitexceededtherequiredprociency
rateinreadingforallschoollevelsanddoubledthepercentage
ofgrade3studentsscoringattheadvancedlevelonstate
reading assessments from 14% to 28% over the 6 years leading
uptoitsBaldrigeAward.
High and Rising Mathematics Prociency (K-12)
Averageannualprociencyrateof85%onacompositegrades
38measureofreadingandmathematicsfor5years(Iredell-
StatesvilleSchools[I-SS])
Averageannualprociencyrateof98% on a grade 4
mathematicsmeasurefor5years(PearlRiverSchoolDistrict)
92%ofgrade3studentsmeetingorexceedingIllinoisStandards
AchievementTeststandardsinmathematics(Community
ConsolidatedSchoolDistrict15)
11%averageannualimprovementfor5yearsonacomposite
K-12mathematicsprociencymeasure(ChugachSchoolDistrict)
94%prociencyrateonagrade8mathematicsmeasure,witha
2%averageannualimprovementfor5years(JenksPublicSchools)
High and Rising AP Enrollment and
Exam Scores (K-12)
Morethan66%ofhighschoolgraduates(Classof2010)tookat
leastoneAPcourseandexam,comparedwith28.3%nationally
and 43.4% in other districts in the state of Maryland; scoresof
3orhigherwereearnedby50%ofthesestudents,compared
to 16.9% nationally and 26.4% statewide. Plus, over the decade
precedingthisdistrictsBaldrigeAward,thenumberofAPexams
takenbyitshighschoolstudentsmorethantripledandthe
numberofAPexamstheytookthatearnedscoresof3or
highermorethandoubled.(MontgomeryCountyPublicSchools)
Nearly60%ofgrade12studentstookatleastoneAPcourse;
scoresof3orbetterwereearnedby76%ofthosetakingAP
teststheyearthedistrictwontheBaldrigeAward.(PearlRiver
SchoolDistrict)
Increase from 12.5%to43.8%instudentenrollmentinAP
courses(%ofstudentbodyenrolledinatleastoneAPcourse),
comparedto31%nationally;scoresof3orhigherwere
earnedon62%to67%ofAPteststaken,and37%ofall
grade12studentshadearnedanAPtestscoreof3orbetter,
comparedto13%nationally,intheyearleadinguptothe
districtsBaldrigeAward(JenksPublicSchools)
High and Rising Graduation Rates
and College Attendance (K-12)
Morethan60%ofgraduatesearnedafour-yearcollegedegree
within6years(Classesof2001and2003).Plus,intheyearthis
districtwontheBaldrigeAward,itboastedthehighestgraduation
rateofanylargeschooldistrictinthenation,accordingtoan
Education Weekstudy.(MontgomeryCountyPublicSchools)
7%averageannualimprovementincohortgraduationrate(%of
students entering grade 9 who graduate 4 years later) for 4 years,
from nearly 64% to 81% (I-SS)
93%to95%graduationrate(%ofstudentsenteringgrade12
whograduatethatyear)sustainedover3years(JenksPublic
Schools)
100%graduationrate(%ofstudentsenteringgrade12who
graduatethatyear)for5years,a7%averageannualincreasein
studentsgraduatingwithaRegentsdiploma(PearlRiverSchool
District)
A6-yearimprovementinthedropoutratefromamongtheworst
inthestatetoamongthebest(3.5%)forstudentsingrades912
(I-SS)
Resultshigherthanthestateaveragein4subjectareason
AlaskasHighSchoolGraduationQualifyingExam(Chugach
SchoolDistrict)
9%averageannualgrowthinthenumberofgraduatesattending
collegeaftergraduationover6years;96%ofgraduates
attendingcollegeimmediatelyaftermatriculation,and100%
doingsowithin5yearsofgraduatingfromhighschool(Pearl
RiverSchoolDistrict)
SUCCE S S AF T E R GRADUAT I ON
( COL L E GI AT E)
Graduate Employment Rates after College
a
99%
98%
100%
C A B
8 Years Most Recent Year 5 Years
a
Thelevelsshownabovereectthemostrecenttimeperiodsreportedbyeachinstitution
beforeitreceivedtheBaldrigeAward.
1. InstitutionA,acommunitycollege,achieveda100%
employment rate for technical training/workforce development
studentsandsustainedthisratefor8years.
2. InstitutionB,anundergraduatecollegeofbusiness,achieveda
98%employmentorgraduateschoolattendanceratebyrecent
graduates,andmorethan90%oforganizationsemploying
graduatesratedtheprogramasgoodorexcellent.
3. InstitutionC,afour-yearpublicuniversity,achieveda98%job-
placementrateforrecentgraduatesandsustainedthisaverage
ratefor5years.
High and Rising Student Satisfaction (Collegiate)
Top10%rankingnationallyon10of16studentsatisfaction
measuresonstudentsurveysbyEducationalBenchmarking,
Inc.(EBI);for2years,scoresinthetop1%foroverallstudent
satisfaction(KennethW.MonfortCollegeofBusiness)
For5years,rankedinthetop10%of171schoolsincludedin
theEBIsurveyforstudentsratingofthevalueoftheirinvestment
intheirdegree;tuitionandfees39%lowerthanthenational
average(KennethW.MonfortCollegeofBusiness)
Survey resultsabovethenationalnormon4ofits5most
importantmeasuresofstudentsatisfactionandon42of79
surveyitems(RichlandCollege)
LOW AND DE CRE AS I NG
TE ACHE R TURNOVE R
a
Improvements in Teacher Turnover
-2%
-78%
-33%
-60%
-4%
-60%
A B C D E F
4 Years 6 Years 4 Years 4 Years 5 Years 2 Years
a
Theimprovementsshownabovereectthemostrecenttimeperiodsreportedbyeach
schooldistrictbeforeitreceivedtheBaldrigeAward.
1. School District As turnover rate for the last year reported in its
BaldrigeAward application was 12% compared with a national
averageof20%.
2. School District Ds certied staff turnover rate for the last year
reportedwas6%,comparedtoanationalrateof20%thatyear.
3. School District E decreased its turnover rate to below the state
average.Thedistrictstartedthelastschoolyearreportedwith100%
ofstaffpositionslledandwaitinglistsformostjobopenings.
4. SchoolDistrictFsteacherturnoverrateforthelastyearreported
was 4.6%, compared to a national average of 16.8% that year.
Voluntaryfacultyturnoverrateofabout3%orlessfor6years
(UniversityofWisconsinStout)
Overallturnoverrateof8%over5years(RichlandCollege)
High and Rising Faculty and Staff Satisfaction
4%averageannualimprovementrateforthe320002009
BaldrigeAward-winningschooldistrictsand3collegiate
institutionsreportingsuchdata.
Over90%teachersatisfactionratereportedacrosselementary,
middle,andhighschoollevelsfor3yearsleadinguptothis
districtsBaldrigeAward;foremployeesatallschoollevels,
favorableresponsestosurveyquestionsregardingwork
satisfactionrangedfrom91.3%to95.5%,andfavorable
responsesfromnon-school-basedemployeesincreasedfrom
78.9% to 84.8% over the same time period. (Montgomery County
PublicSchools)
Over 3 years, improvement fromanaveragesatisfactionratingof
3.67ona5-pointscaleto4.00forallemployees,basedonexit
interviews(UniversityofWisconsinStout)
Improvement in the levels of employee enthusiasm for work from
anaverageratingof3.64ona5-pointscaletoanaveragerating
of4.62,a27%improvementin3surveysovera7-yearperiod
(JenksPublicSchools)
97%satisfactionrateamongfacultyandstaff,upfrom88%for
thecombinedgroupoffacultyandstaffsegments3yearsearlier;
thisscoreservedasthebenchmarkforschoolsusingthesame
survey.(PearlRiverSchoolDistrict)
TheCaseforBaldrige:
SuccessesintheNonprotSector
Municipal Government
The real value in applying for this Award is in the rigorous
evaluation process. The constructive feedback from Baldrige helps
us improve the way we do business.
MikeLevinson,CityManager(19932010)
CityofCoralSprings
Charteredin1963andonceknownastheCityintheCountry,the
cityofCoralSpringsislocatedinBrowardCounty,southernFlorida.
Duringthe1980s,CoralSpringswasoneofthefastest-growing
citiesinthenationandwashometoabout132,000peoplein2006,
makingitthe13th-largestcityinthestate.Withanannualbudget
of$135millionasof2007,thecityofCoralSpringshasacouncil-
managerformofgovernment:theCityCommissionservesasthe
boardofdirectors,andthecitymanageraschiefexecutiveofcer,
withinputfromcitizensandbusinesses.
CoralSpringsisarolemodelinitsfocusoncustomersandboasts
highsatisfactionratesasaresult.Forthesevenyearsbeforeit
receivedtheBaldrigeAward,thecitysoverallqualityratingswere
higher than 90 percent, which surpassed International City/County
Management
Association(ICMA)
comparisoncities.
Thepercentageof
residentswhowere
satisedwithcity
serviceswasinthe
mid-toupper90s.
Businessownersin
CoralSpringswho
weresatisedwith
thecityincreased
from76percentto97percentoverthreeyears,and90percentof
businessownerssaidtheywouldrecommendthecitytoothers
comparedwiththeAmericanCustomerSatisfactionIndexnational
averageofabout75percent.Inaddition,theyearbeforeitreceived
theBaldrigeAward,thecitysmillageratetheamountper$1,000
thatisusedtocalculatepropertytaxeswasthelowestofallcities
inBrowardCounty.In2006,Money magazinenamedCoralSprings
amongtheBestPlacestoLive,andin2005,2006,and2007,the
citywasnamedoneofthe100bestcommunitiesforyoungpeople
byAmericasPromiseAlliance.
CoralSpringsmanagedtosatisfyresidentsandbusinesseswhile
maintainingastrongbalancesheetandcashposition.Forseven
straightyears,thecityattainedaAAAratingfromthenationsthree
largestbond-ratingagenciesMoodysInvestorServices,Standard
andPoors,andFitch.
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Coral Springs Quality Ratings
100%
Better
90%
80%
70%
60%
50%
40%
Coral Springs ICMA 1 ICMA 2
ICMA 3 ICMA 4 ICMA 5
ICMA 6 ICMA 7 ICMA 8
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
U.S. Military
[The men and women of ARDEC] have earned distinction for our
organization, the new high-technology Army, and the Department
of Defense by embracing the Baldrige Criteria. . . . We [adopted the
Baldrige Criteria] in order to become the best organization we can
possibly be and provide the best products and support we can to
the U.S. Warghter.
Dr.JosephA.Lannon,Director
U.S.ArmyArmamentResearch,DevelopmentandEngineeringCenter
(ARDEC)
TheU.S.ArmyArmamentResearch,DevelopmentandEngineering
Center(ARDEC)isaspecializedcenterwithintheU.S.Army
MaterielCommand.ARDECdevelops90percentoftheArmys
armamentsandammunition,includingwarheads,explosives,all
sizesofrearms,battleeldsensors,andadvancedweaponrybased
onhigh-powermicrowaves,high-energylasers,andnanotechnology.
A2007BaldrigeAwardwinner,ARDEChasdemonstratedstrong
fnancial results. Its overall revenue increased from $640 million
toover$1billioninsixyears.Inthesameperiod,revenuefrom
non-Armycustomers(fromothergovernmentagencies[OGAs],
theDefenseAdvancedResearchProjectsAgency[DARPA],and
CooperativeResearchandDevelopmentAgreements[CRADAs])
grew from $60 million to $140
million.ARDECsrevenues
continuedtoincreaseasadirect
resultofitsEnterpriseExcellence
initiative,includingitsStrategic
ManagementSystem.The
continuousupwardtrendin
non-Armyfundingshownin
thegureonthenextpage
demonstrateshowARDEChas
diversieditscustomersinlight
ofthepotentialforconstrained
Armybudgetsinthefuture.
Non-Army Revenue & Percentage of Total ARDEC Revenue
25
160
20
Better
Goal25%
Goal20%
15%
Goal
Goal
16%
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15
80
10
40
5
0
0
Fiscal Year
(FY) 1 FY2 FY3 FY4 FY1 FY2 FY3 FY4
% of Total ARDEC Revenue ($M) Air Force/Navy/Marines
Department of Defense DARPA
OGAs Industry/CRADA
ARDECs overall customer satisfaction rating increased from 3.48 (on
a 4-point scale) to 3.75 over six years, exceeding both government
andindustrybenchmarks.Forathree-yearperiod,satisfactionamong
Armycustomersremainedfairlyconsistentat3.62,whilesatisfaction
amongnon-Armycustomersincreasedfrom3.82to3.92.This
successgrewlargelyoutofARDECsmethodofgatheringandusing
informationfromitscustomers.Web-basedcustomersatisfaction
surveysprovide1,500datapointsandover60pagesofcomments
eachquarter,withtheresultsavailabletoeveryoneintheworkforce.
ARDECalsohasdevelopedanumberoftoolstohelpitreact
quicklyandeffectivelytocustomersneeds.Forexample,thecenter
formalizedaWeb-basedtoolforcollectingandtrackingcustomer
requestswiththeobjectivetocloseallrequestswithin72hours.
ARDECmetthatgoalinveofsixquartersstartingtheyearafterthe
toolwasintroduced.
TheBaldrigeEffectonNonprots
Since2007,whentherstorganizationreceivedtheBaldrigeAward
inthenonprotcategory,threeorganizationshavebeensohonored:
the 13th-largest city in the state of Florida
a center within the U.S. Army Materiel Command that develops 90% of
theArmysarmamentsandammunition
a federal government organization that supports multicenter clinical
trialstargetingcurrenthealthissuesforAmericasveterans
theseorganizationsachievedveryfavorableresultsthatdirectly
improvedcustomersatisfaction,nancialresults,andemployee
turnover,aswellasothermeasures.Theseachievementsare
highlightedbelow.
a
94%
97%
93%
100%
A B B C
Customer Customer
Group 1 Group 2
a
Thelevelsshownabovereectthelastyearreportedbyeachorganizationbeforeit
receivedtheBaldrigeAward.
1. ForNonprotOrganizationA,customersatisfactionincreased
8%over7years.
2. Foritscustomergroup1,NonprotOrganizationBreporteda
28%gainincustomersatisfactionover3years.
3. Foritscustomergroup2,NonprotOrganizationBreported
customersatisfactionof92%orhigherfor9consecutiveyears.
4. ForNonprotOrganizationC,customersatisfactionincreased
20%over6years.
90%ofbusinesseswouldrecommendthecityasaplacetodo
business,a13%gainover3years.(CityofCoralSprings)
75%ofcustomerrelationshipswerelongerthan10years.
(VeteransAffairsCooperativeStudiesProgramClinicalResearch
PharmacyCoordinatingCenter[theCenter])
For6years,fewerthan1%ofcustomersreporteddissatisfaction.
(U.S.ArmyArmamentResearch,DevelopmentandEngineering
Center[ARDEC])
Improved Financial Results
56%increaseinrevenueover6years(ARDEC)
Costavoidanceof$3.22billionover5years(ARDEC)
Budgetgrowthof143%over6years(theCenter)
99%orgreaterperformancetobudgetover6years(theCenter)
A SAT I S F I E D, STABL E WORKF ORCE
a
Workforce Satisfaction Increases
B A C
6%
16%
19%
3 Years 11 Years 3 Years
a
Theimprovementsshownabovereectthemostrecenttimeperiodsreportedbyeach
organizationbeforeitreceivedtheBaldrigeAward.
53%decreaseinemployeeturnoverover9years(CityofCoral
Springs)
29%decreaseinemployeeturnoverover7years(theCenter)
95%employeesatisfactionagainstanaverageof60%to65%on
theFederalHumanCapitalSurveyintheyeartheBaldrigeAward
wasreceived(CityofCoralSprings)
Excellent Service
50%decreaseincrimerateover10years(CityofCoralSprings)
100%ofcomplaintsclosedwithin7businessdays(CityofCoral
Springs)
50%increaseinproductreleasesover5years(ARDEC)
Lessthan1complaintpermillionunitsdeliveredin8of9years
(theCenter)
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TheDilbertcomicstrip
spoofedtheBaldrigeProgram
inthemid-1990s.
t
DILBERT: Scott Adams/Dist. by United Feature Syndicate, Inc.
AwardWinners
Journeys:HowBaldrige
LedThemtoExcellence
ThejourneysthatMalcolmBaldrigeNationalQualityAwardwinners
taketoattainperformanceexcellencemayvary,buttheresultsare
thesame:recognitionasbest-in-class,world-class,andnationalrole
models.ThestoriesinthissectionrecountBaldrigeAwardwinners
strategiesforcontinuousimprovementandthedeterminationthat
ledtoexcellence.Ineachcase,anexecutivedeterminedthatthe
BaldrigeframeworktheCriteriaforPerformanceExcellencewas
notjustawaytofosterinnovationandrunthebusiness,butthe way
toachievesuccessandsustainability.
Eachstoryisfollowedbythelessonstheseexecutiveslearnedasthey
negotiatedtheturningpointsontheirjourneystoexcellence.Here
aresomecommonthemes:
Be willing to accept feedback and strive for incremental
improvementwhilealsoaddressingopportunitiesfor
breakthroughinnovation.
Engage your organizations senior leaders in the journey.
Listen to and integrate the voice of the customer into your
productsandprocesses.
Focus on benefcial results rather than on winning the Baldrige
Award.
Award Winners Journeys: How Baldrige Led Them to Excellence 55
Never lose sight that your
organizationisimprovingevenif
youhaventachievedyourultimate
goals.
Focus on relationships and building
trust.
Determine what level of
performanceyourorganization
wishestoachieveandwhattype
ofevidenceyouneedtocollectto
provethatyouhaveachievedit.
FromKerneltoCrystal
CargillCornMilling(CCM)couldnothavereacheditslevelof
performanceexcellencewithouttheBaldrigeCriteria,saysRon
Fiala,processimprovementmanagerofthe2008BaldrigeAward
winner.TheCriteriahelpedCCMseethattheelementscriticaltoits
successare(1)leadershipinvolvementandsupport,(2)relentless
determination,(3)internalandexternalintellectualandcultural
resources(suchasstateandlocalBaldrige-basedawardprograms
and the national Baldrige Program), and (4) the wherewithal to
acceptfeedback.TheseareallelementsoftheBaldrigeCriteriafor
PerformanceExcellence.
CCM was established over 40 years ago, when its parent company,
Cargill,Inc.,acquiredasmallplantinCedarRapids,Iowa,that
processedabout10,000bushelsofcornaday,orapproximately
12truckloads.Today,CCMoperatesnineplantsandprocessesover
1millionbushelsofcorneachday.Thatsequivalenttotheyieldof
acorneldthesizeofthestateofConnecticuteveryyear.
Toaccommodaterapidincreasesincustomersandproduct
offerings,CCMhadtogrow.Butthisgrowthcouldnotbejust
aboutcontinuousexpansion,saysFiala.Itwascriticaltofocus
oncontinuousimprovement. CCMneededtoimproveitsprocess
controlandabilitytomakehigh-qualityproducts.CCMsearly
businessmodelwastoruneachplantasaseparatecompany,with
itsownprot-and-lossstatement.Theplantscompetednotonlywith
outsidecompaniesbutalsowithotherCCMplants.
AccordingtoFiala,CCM,likemanymanufacturingcompanies,
starteditstotalqualityeffortsinthemid-1980sbecauseofcustomer
requirementsforproductquality.In1991,CargillsCorporateQuality
DepartmentcreatedtheinternalChairmansQualityAward,which
singledoutthebest-runplantsinthecompany;theawardcriteria
werebasedontheBaldrigeCriteria.Applyingtoandreceiving
feedbackfromthisinternalawardprogramhelpedCCMembedits
processorientationintoitsculture.Duringthisperiod,CCMwas
oneofthemostsuccessfulCargillbusinesses;however,nothinglasts
forever,especiallyinbusiness.
A Group of Plants or an Enterprise?
Afteryearsofscramblingtokeepupwithgrowingdemand,CCM
facedovercapacity,saysFiala.Thisip-opinsupplyanddemand
causedsyruppricestoplummettorecordlowlevels.Everyoneinthe
cornmillingindustrysuffered,whichledtoseveralconsolidations
amongcompetitors.Thisledtoovercapacityinthemarketplace,and
CCMneededtoreevaluatehowitoperated.
ThebiggestdifferencebetweenCCManditscompetitors,Fialasays,
wasthatitoperatedmoreplantsinmorelocations.Thisdifference
couldbeahugebenetifCCMcouldtapintotheskills,knowledge,
andideasofallofitsemployeesateverylocationandeffectively
shareacrossplants.Toaccomplishthis,CCMhadtoshiftfrombeing
plant-centrictooperatingallplantsasasingleenterprise.Fromthen
on,onlyonebottomlinewouldmatterthatofthebusinessasa
whole,Fialasays.AdoptingtheBaldrigeCriteria,withitsholistic,
systemsframework,becamethelogicalnextstep,andCCMbegan
activelyincorporatingmoreCriteriaconceptsintoitsownpractices,
includingtheformationofbest-practiceteamsandthesharingof
learningacrossallplants.
The Dening Moment
Ataboutthesametime,Cargillsinternalawardwasrenamedthe
BusinessExcellenceAward,withtheBaldrigeCriteriaremainingits
foundation.Thebiggestchangetotheinternalaward,accordingto
Fiala,wasthatCCMcouldonlyapplyasanenterprise;individual
plantswithinCCMcouldnotapply.CCMsubmittedanapplication,
andFialaandhiscolleagueswereshockedwhenitscoredpoorly.
CCMprotestedthattheprocessmusthavebeenawed,andits
objectionswentallthewaytothepresidentofCargill,GregPage,
whoagreedtospendoneentiredayreviewingCCMsaward
application.Apparently,PagedidnotbelieveCCMsprotestwas
legitimate.Hesimplysaid,Ifyoutrulythinkyouarebetterthanthis
scoreindicates,thengettoworkandproveit!
ThiswasthedeningmomentinCCMsjourney,Fialasays.It
tookusawhile,butwenallydidacceptthefeedbacktomore
systematicallydeployprocessesacrossourplants.Fromthat
pointon,CCMwholeheartedlyadoptedtheBaldrigeCriteria:
Thecompanyreneditsstrategyreviewprocesstomakeitmore
systematicandinvolveadditionalemployees,anditcreatedexpert
panelstointegratethevoiceofthecustomerintooperations.That
allCCMemployeesunderstandhowtheytandwhytheymatter
becameagoal,saysFiala.Thebest-practicemodelwasimproved
tosystematicallyidentify,measure,document,andimplementbest
practices,andthecompanyputaninnovationprocessinplaceto
collect,track,andimplementgreatideasfromallemployees.Thus,
CCMmovedfrommerelyfocusingoncontinuousimprovementto
fosteringinnovationatthesametime.
Inthefallof2005,CCMsleaders,desiringadditionalfeedback
aboutitsprocessesfromoutsideCargill,decidedtoapplyforthe
nationalBaldrigeAward.Fialasaysthefeedbackcontainedsome
excellentrecommendations,andexecutivesusedthefeedbackto
createtheCornMillingLeadershipSystem,whichincorporatesall
aspectsoftheBaldrigeCriteria.In2008,CCMreceivedtheMalcolm
BaldrigeNationalQualityAward.
CCMsabilitytoexecuteitsstrategyenabledittoincreaseits
protabilityinthetenyearsbeforeitreceivedtheBaldrigeAward.
Webelieveevenintodaystougheconomicenvironment,thatour
peopleandoursystematicprocesseswillhelpusweatherthestorm,
Fialasays.
Dontexpectonlyhighsalongthejourney.Executives
mustbewillingtomakeincrementalimprovementseveryday.
Dontrejectexternalfeedbackwithoutgivingitdue
consideration.Thehardestpartaboutfeedbackishavingthe
couragetoacceptit.
Domakethedecisiontotrulybecomeaprocess-
honoringculture.In2002,CCMmadethisdecision,which
becameadeningmoment.
Doacceptthatanoutsidesetofeyescanpointoutyour
blindspots.
Dorecognizetheelementscriticaltosuccess:leadership
involvementandsupport,determination,resources(both
internalandexternal),andwillingnesstoacceptfeedback.
AReturnfromtheBrink
AccordingtoCEORulonStacey,PoudreValleyHealthSystem
(PVHS)beganitsBaldrigejourneyinthemid-1990s,whenitwasa
communityhospitalservingonlyFortCollins,Colorado.Thehospital
facedanemployeeturnoverrateof25percenteachyearandhad
beenledbyasuccessionofveCEOsinfouryears.PVHSsannual
revenueswereaquarterofwhattheyhadbeeninrecentyears,and
thelocalhealthcaremarketwasdemandingmoreintegrationwith
physicians.Itwasacriticaltimefortheorganization,saysStacey,
asitneededaprocessthatwouldallowittosetitssightshighand
continuallyimprove.
In1997,withthesupportoftheBoardofDirectors,executivesbegan
areviewofdifferenttoolsthatsupportedcontinuousimprovement
inpatientcare;PVHSchosetheBaldrigeCriteriaforPerformance
Excellence.
PVHSrstsubmittedaBaldrigeapplicationin2000,afterconvening
teamsfocusedoneachofthesevenCriteriacategories.Eachteam
wroteitsownsectionoftheapplication,andwestuckthese
sectionstogether,Staceysays.Initially,headded,theBaldrigeeffort
wassomethingemployeesworkedononceayear,outsidetheirreal
jobs,andtheylookedonlyattheirassignedcategories.
Still,Staceysays,PVHSreallyexpectedtowintheBaldrigeAward
earlyon.Wewereusedtowinningawards,andcertainly,we
thought,Baldrigewasnodifferent....Wewerequiteshockedtoget
ourrstfeedbackreportandndwewereonlyinScoringBand2
[outof8].
A New Approach: Systematic Improvement
The year 2004 was a turning point. As Stacey explains, PVHS
realizedthatforBaldrigetoworkfortheorganization,itneededto
makeBaldrigehowitdoesbusiness.First,PVHScreatedaQuality
ImprovementDepartmenttoestablishasystematicandintegrated
approachtoperformanceexcellencethatcrossedcalendarsand
Criteriacategories.Thensevenperformanceexcellenceteamswere
trainedontheBaldrigeCriteriacategoriesandworkedtoidentify
gapsintheorganization.Seniorleadersservedeitherasteamleaders
orasteammembers.Teamsalsoincludedpeoplefromacross
facilities,disciplines,andcustomergroups.
Staceysaysthat,eachyear,PVHSrigorouslyassesseditsprogress
throughtheBaldrigeapplicationprocessandthefeedbackreportit
received.Seniorleadersreviewedthereportsandsetthedirection
forthesevenperformanceexcellenceteams.Theteamseach
developedanannualactionplandetailingimprovementstoworkon
duringtheyearahead.TheQualityImprovementDepartmentthen
workedwitheachoftheperformanceexcellenceteamstodevelop
anactionplanalignedwiththeorganizationsstrategicplan.
AccordingtoStacey,inresponsetoBaldrigefeedback,the
LeadershipTeamhasbeeninstrumentalindeployingPVHSsvision,
mission,andvaluesacrosstheorganizationthroughitsGlobalPath
toSuccesssystem.Inaddition,theteamsetupaprocessfortaking
correctiveactionwhensystemwidebalancedscorecardmeasures
arenotperformingtogoal.ThankstotheStrategyTeamsnumerous
cyclesofimprovement,thestrategicplanningtimelinewasaligned
withleadershipretreatsandthecapitalandoperationalbudget
Acommonquestion
wegetis,howmuch
productivetimedo
youlosetoBaldrige?
Ifyoureaskingthat
question,youdont
getityet.Baldrige
hastobehowyou
runyourbusiness....
Peoplewanttoknow
howwecanafford
todoBaldrige.We
tellthem,Youcant
affordnotto.
PoudreValley
HealthSystemCEO
RulonStacey
cycles.Thisteamalsorolledoutpersonalgoalcardsasawayof
linkingindividualemployeesactionstotheorganizationsstrategic
objectives.Andtheteamcontinuestoworkonnewwaystoinvolve
physiciansinstrategicplanning.
BasedonBaldrigefeedback,PVHSnowhasasystematicapproach
totracking,trending,andsharingthevoiceofthecustomerto
determinehowtheorganizationisdoingincustomerserviceand
whereitcanimprove.PVHSalsochangedthewayitlooksatpatient
satisfactiondata.TheKnowledgeManagementTeamcontinuesto
renethebalancedscorecardprocess,addingdenitionsheetsthat
standardizewhatPVHSismeasuringandhowitismeasured.This
teamalsoledthetransitiontoanelectronicbalancedscorecard
andtotheuseofanationaldatabaseforrisk-andseverity-adjusted
clinicaloutcomes.TheWorkforceTeamestablishedanddeployed
behaviorstandards,launchedstayinterviewswithcurrent
employees(movingawayfromexitinterviewswithdeparting
employees),institutedperformancereviewsforvolunteers,and
expandedapeer-to-peercouponprogram($3couponsforthegift
shop,localbusinesses,andcafeteriathatpeersawardeachotherfor
actionssupportingstandardsandvalues)toincludevolunteersand
physicians.TheProcessImprovementTeamestablishedtheBusiness
DecisionSupportProcesstoanalyzeandprioritizeproposalsfornew
serviceofferingsaswellasmajorcapitalprojects.Staceysaysthe
overallresulthasbeencontinuous,systematicimprovementdriven
bytheBaldrigeCriteria.
In2008,PVHSreceivedtheBaldrigeAward.Baldrigehaspaid
offforus,saysStacey.ButPVHScertainlydoesnotconsiderits
Baldrigejourneyover.EvenasaBaldrigeAwardwinner,PVHSfound
thatits2008Baldrigefeedbackreportincluded32opportunitiesfor
improvement,andtheorganizationwasalreadyworkingonthoseit
hadidentiedevenbeforethereportarrived,headds.
DontletBaldrigebecomeanactivityyourorganization
doesontheside.AsStaceyremembersit,Initially,Baldrigewas
somethingpeopledidonceayear,lookingateachcategoryina
silo,separatefromtheirrealjobs.Thisapproachdidnotwork.
Dontoveremphasizetheaward.AtonepointinPVHSs
journey,saysStacey,Therewasaperceptionamongemployees
andphysiciansthatthiswasjustonemoreawardwewantedto
addtoourrsum...[so]motivationdroppedwhenwefound
outthatwewerenotawinner.However,Staceyadds,Itwasso
muchmoremotivationaltoengageourworkforceinproviding
world-classcareinsteadofaskingfortheirhelptowinanother
award.
Dontgiveup.Therewerelotsoftimesinourjourney
whenwequestionedwhetheritwasworthit,saysStacey.
Wegotdisappointed,evenangry,andstaffseemedtolose
motivation.Butwepersistedandfocusedonimprovementswe
hadalreadymadeandimprovementswewantedtomake.
Dontcramforthetest.DontdoBaldrigebysimply
memorizingtherightanswersbeforetheBaldrigeexaminers
visityoursiteaspartoftheirevaluation,advisesStacey,Liveit!
Dogetbuy-infromthetop.AsPVHSfound,directionand
empowermentfromleadershipisessential.
DoconsiderBaldrige-relatedactivitiesproductivetime.A
commonquestionwegetis,howmuchproductivetimedoyou
losetoBaldrige?saysStacey.Ifyoureaskingthatquestion,you
dontgetityet.Baldrigehastobehowyourunyourbusiness.
Domakeimprovementyourmainfocus.SaysStacey,
Werealizedthatalotofourfocushadshiftedtowinningthe
award.Whenthemainfocusshiftedbacktoimproving,PVHS
beganseeingthebenecialresultsthatledittotheBaldrige
Award.
Oneofthemost
interestingthings
wevelearnedfrom
thewholeMalcolm
Baldrigeexperience
isthatwhena
companyhasa
vision,amission,and
well-denedvalues,
ithasthefoundation
necessarytooperate
inanyenvironment.
MESACEOTerryMay
ABaldrigeCinderellaStory
TerryMay,CEO,president,andfounderofMESAProducts,
Inc.,characterizeshissmallcompanysjourneytoperformance
excellenceasaCinderellastory.Foundedin1979withjustasingle
client,MESAtodayisheadquarteredinTulsa,Oklahoma,withve
branchofcesinTallahassee,Florida;Houston,Texas;Huntington
Beach,California;FortWorth,Texas;andWapakoneta,Ohio.The
companyprovidesengineering,installation,andmaterialsfor
cathodicprotectionsystems(aprocessthatpreventsmetalstructures,
particularlyundergroundhydrocarbonpipelinesandtanks,from
corroding).
Growth, Quality, and Difculties
InMESAsearlydays,itfocusedonengineeringandtechnical
services.Astheorganizationgrew,Mayaddedinstallationservices
andmaterials.Theseexpansionsduringatimewhentheindustrywas
depressedallowedMESAtomaintainsteady,protablegrowth.But
Mayalsowantedhiscompanytodeliveraqualityproductatafair
price,sohefocusedonthatconceptthroughoutthecompanysrst
decade,despitethedifcultieshefacedinsecuringbankloansto
keepthecompanyoperating.
Intheearlyeighties,wewerealwaysconcernedabouthow
wedsurvive,buttherewasalwayssomelevelofoptimism,says
May.Theturningpointforuswasonejobthatthrewoffalotof
cash.Onceitlookedtothebanksthatwedidntneedthemoney,
theywereeagertoloanittous.Thatwasthersttimewecould
comfortablythinkweweregoingtomakeit.Then,in1989,Inc.
magazinerecognizedMESAinitsTop500listofthefastest-
growingprivatecompaniesintheUnitedStates.
Asthecompanycontinuedgrowingandtakingonlargerprojects,
Maysfrustrationkeptpace.Withallthatgoingon,westarted
screwingupmore.Nobigblunders,butbynow,thecostofthose
mistakeswasbecominggreaterandhadmoreimpact.Thatswhen
Irstbecameinterestedintheformalconceptsofquality,says
May.Hestartedreadingbooksonqualityandsubsequentlyled
MESAthroughtwounsuccessful
attemptsatTotalQuality
Management.Following
successfulimplementationof
ISO9002certication,May
becameawareoftheBaldrige
Award.In2002,whileon
juryduty(duringbreaks)and
equippedwithalaptopanda
Criteriabooklet,Maystarted
typingresponsestotheCriteria
questions.Bythetimejuryduty
ended,Ihad15typewritten
pagesandgured,howmuch
hardercoulditbetonish?
Workingaloneonnightsand
weekends,hissubsequent
questtonishansweringall
theCriteriaquestionstook
himanother250hours:What
wassoappealingisthat,from
theCriteria,IsawmanythingsthatMESAwasalreadydoingor
discussingstrategy,customersatisfaction,employeesatisfaction,
vision,values.Baldrigejustseemedtowrapallthatintooneneat
littlepackage.
Getting Better with Each Feedback Report
Amonthafterhesubmittedtheapplication,Maytoldhisleadership
teamwhatheddone.Theresponsewas,WhatsBaldrige?While
MESAsleadershipteamdidntseethevalueyet,Maysayshesaw
itasanaccomplishmentthathedtoldtheentireMESAstoryin35
pages.Buthewasnotpleasedwhenhereceivedthefeedbackreport
writtenbyateamofBaldrigeexaminers.Mayadmitshewasinitially
angeredbytheopportunitiesforimprovement(knownasOFIs)in
thereport,butafterherereadthem,hestartedtothinkthefeedback
couldhelphiscompany.Aftertossingout30percentoftheOFIs
becausetheyhadnoimmediatevaluetoMESA,herecalls,he
realizedtherewasvalueinwhatthereportsaid.
In2003,MaygottherestoftheMESAmanagementinvolvedinthe
Baldrigeprocess,wroteanotherBaldrigeAwardapplication,and
earnedasitevisit.Buthesaysthathiscompanywasnotpreparedfor
thatvisitbyBaldrigeexaminers.Wehadafalsesenseofwherewe
were,hesays.
By 2004, MESA had addressed the OFIs from its previous feedback
report,writtenanotherapplication,andearnedanothersitevisit.This
timeMayinvolvedalmosteveryoneinthecompanyintheprocess.
Iwasputtingpressureonpeople,sendingthemtoBaldrigetraining,
andsimultaneouslyapplyingfortheOklahomaQualityAward.But
ourBaldrigeexperiencewasadisaster.
In2005,afteraddressingthenewOFIsandwritinganother
application,Mayandhiscompanyreceivedanothersitevisit,but
itdidnotreceivetheBaldrigeAward.Thefeedbackwasthatwed
improved,butwejustwerentthereyet,saysMay.Onthepositive
side,headds,everyonerecognizedthevalueoftheprocess,as
improvementswereevidentandproducingresults.
In2006,afterdeepeningthecommitmentoftheseniormanagement
teamtotheBaldrigeprocessandaddressingtheOFIs,MESAagain
submittedaBaldrigeapplicationandreceivedasitevisit.Thistime,
thecompanynallyreceivedtheBaldrigeAward.Inthesameyear,
MESAalsoreceivedtheOklahomaQualityAward.
MaylearnedthatbeingaBaldrigeAwardwinnerdidnotmeanhis
companyhadreachedtheendofitsimprovementjourney:Along
withtheannouncementthatwedwontheBaldrigeAwardcame
another50OFIs,hesays.Sowereaddressingthoseandwill
continuetoimprove.
Dontsetexpectationsforaquickjourneyto
performanceexcellence.MESAsearlyexpectationswere
unrealistic,saysMayacertainrecipeforfrustration,
discouragement,andfailure.
Dontfocusjustonwinninganaward.Everyyearwe
didntwin,wedstillgottenbetterasacompany,saysMay.He
recommendsfocusingonthepositives,addressingtheOFIsin
feedbackreports,andneverlosingsightthattheorganizationis
improvingthroughoutthejourney.
Dothingsyourway;thereisnomagicformula.Our
methodwastrialanderrorandittookusveyears,says
May.Asasmallcompany,ourresourcesarelimited.But
althoughwemaynotdothingsthewayothersdo,wend
waystogetthingsdone.
Dobepatient,anddoyourbest.Onetrickisnottocall
this processBaldrige,saysMay.Weneededthistobecome
partofourdailyjob,sowecalledwhatweweredoingThe
MESAWay.
ABaldrigeTransformation
Iredell-StatesvilleSchools(I-SS)wasformedin1992fromthe
mergerofacountyschoolsystemandacityschoolsystem.By
the2000-2001schoolyear,theschoolboardhadinitiatedan
investigationofthelow-performingschoolsystembasedonreports
ofnancialmismanagement.ApostingontheschoolsystemsWeb
pagesubsequentlymadeover70negativendingspublic.TheBoard
ofEducationeventuallyredthesuperintendentandconducteda
searchforanewone.
TerryHollidaywasselectedforthepositioninthefallof2002.
AccordingtoHolliday,theBoardofEducationofferedhimthejob
becauseofhisBaldrige-basedplanforturningaroundthesystem:
TheysaidIwastheonlyonewhohadaplan.TheplanIhad
presentedtothemwasbasedontheBaldrigeCriteria.TheplanI
presentedwasaboutchangingthesystemfromateaching-and
adult-centeredsystemtoalearning-basedsystem.
AtthestartofHollidays
tenure,hesays,We
hadaschoolsystemthat
wasbroke,abudget
thatwasabout$2.5
millionoverrevenue,
below-state-average
studentachievement,low
communityexpectations,
acommunitythatdidnot
trusttheschoolboard
orthesuperintendent,
deterioratingschool
facilities,andafast-
growingpopulationdue
tosuburbansprawl.
However,Holliday
embarkedonthejourney
towardsuccessforI-SS
condentthathehadthe
resourcesheneededtoaddressthechallenges:Wedidhaveone
thinggreatstaffandaschoolboardthatwantedchange!Headds
thatthesystemsnewvisionwasakeydriveroftheimprovement
journey.Ourvisionthatweadoptedbytheendoftherstyearwas
verysimpleandonethateveryonecouldunderstand,saysHolliday.
Wewantedtobecomeatop-tenschoolsysteminNorthCarolina
asmeasuredbystudentlearningoutcomes.
From Blame to a Focus on Learning
Atrst,Hollidayfacedaclashofcultures:Veryquicklyitbecame
evidentthattherewasanimpendingconictbetweentheleadership
beliefs/values as espoused by the Baldrige Criteria and the existing
cultureinourcommunity.Thecommunityofparentsandteachers
tendedtoblameothers(especiallythesuperintendentandschool
leaders)forfailures,hesays.Inaddition,theorganizationalculture
focusedonwhatwasbestforadults,notwhatwasbestforlearning.
Decisionswereoftenmadeaccordingtothatsthewaywehave
alwaysdoneitaroundhereratherthanbasedondata,Holliday
says.Healsofacedmistrustofnewprogramsorinnovations,
suchastheplan,do,study,act(PDSA)continuousimprovement
methodology,Hollidayadded.
BeginningtheBaldrigejourneywithafewstrikesagainstus,
Hollidayknewitwasextremelyimportantthathe,alongwiththe
BoardofEducationandotherseniorleaders,focusonapassion
forlearning,includingtheneedtoreignitethispassioninadults.I
trulybelieveparentsandteacherswantallchildrentobesuccessful.
Theyjustdonotknowhowtohelpthechildrenreachsuccess....
Wehavetobelievethatwecanigniteapassionforlearningin
everyone.Headded,Actionsmustrevealafocusonlearningrather
thanafocusonadultsbyalwayslookingathowwecanhelpeach
otherbecomemoreeffectiveinhelpingmorechildrenlearn.
AsI-SSstarteditsBaldrigejourney,Hollidayalsoknewthathaving
everyonereadtheCriteriawouldnotmeantheywouldinstantly
becomesystemsthinkersandagentsofchange.Instead,he
understoodthathehadtostartwithsmallchangesandproduceearly
successestobringpeoplealongonthejourney.
DuringthesystemsrstsixmonthsofusingtheBaldrigeframework,
HollidayandotherI-SSleaderslearnedthattheyhadtoaddress
theproblemofexternalblame.Theyalsohadtocreateasense
ofurgencyforchangeamongthosestaffmemberswhowere
complacentaboutmediocrestudentperformance.I-SSleaders
learnedthatfactsalonedonotchangeperceptions;nordofear
orforceresultinlastingchangeinteachersbeliefsorpractices
regardingstudentlearning.AccordingtoHolliday,Wecouldtell
ourstaffthatover2,000childrendropoutofschooleveryday;
however,itdoesnotmeananythinguntiltheyseeafacetogowith
thedropoutstatistic.
Three Questions
Earlyinhistenure,Hollidayvisitedallschoolsitesandhosted
staffmeetingsineachoftheschoolsystemscommunities.Atthe
meetings,healwaysaskedthesamethreequestions:
What is getting in the way of student learning?
What do you need to help all children be successful?
What do you expect from the superintendent?
Byaskingtherstquestion,aboutbarrierstostudentlearning,
Hollidaywasindirectlylettingallstaffknowthedirectioninwhich
theschoolsystemwasmovingtowardincreasingstudentlearning.
Hefoundthatthequestionelicitedsomepeoplesbeliefthatnot
allchildrencouldlearn.Ifyoudonotbelieveyoucanreachyour
destination,thennoonewilltakethetrip,muchlessplanforthe
trip,hesays.ItalsobecamecleartoHollidaythatstaffmembers
werepronetoblamethelackofstudentsuccessonexternalfactors.
Apatheticandunmotivatedstudentswasthenumber-oneresponse
tothequestion,andanotherfrequentlycitedreasonwaslackof
parentalsupport.
Thepurposeofthesecondquestion,aboutstaffneeds,wasto
alignresourcestothemissionstatement,accordingtoHolliday.In
response,staffmembersrankedoneofthehighestneedsasholding
childrenandparentsaccountableforattendance.Itwasevident
fromthestudentattendancepercentagethattheschoolsystemhad
aprobleminthisarea,particularlyincomparisontootherschool
systems.
Thecrucialthirdquestionwhatdoyouexpectfromthe
superintendent?wasintendedtohelpHollidayndouthowhe
couldrestoretrustinthesuperintendentsposition.Theresponses
revealedthatthestaffwantedthesuperintendenttobevisible,
particularlyintheschools.Theywantedthesuperintendenttoattend
studenteventsandbesupportiveofallprograms.Theyalsowanted
thesuperintendenttocommunicateopenlyandhonestly.
Achieving the Vision
Afterthemeetings,Hollidaystartedtacklingschoolattendance.He
createdadistrictleadershipteamtomodelanimprovementprocess.
WenevercalleditBaldrige,hesays.Wejustsaidweweretrying
toaddressaproblemthatteachershadsaidwasahugebarrierto
studentlearning.Withinayear,theschoolsystemhadimprovedits
attendanceratefromoneofthelowestinthestatetothestatewide
average.Withinthreeyears,I-SSwasoneofthetop-threeschool
systemsinthestate,andthedistrictmaintainedthatstatusforthe
nextfouryears.
ThekeylearningpointforHollidayandtheotherseniorleaders
wasthatrelationshipsintheschoolsystemhadtoberepaired
forittomoveforward.Embarkingonalisteningtour,including
goingdirectlytoemployeeswhohavedirectcontactwiththe
mostimportantcustomersthestudentswastherststeptoward
addressingthisneed.Afterthat,leadersmodeledsmallbehavior
changes,startingwiththeattendancePDSA;theypublishedthe
earlypositiveresultsofthiseffort,thuscreatingastrongmotivator
forimprovement.Onlyafternumeroussmallbehaviorchanges
andsuccessdidwestarttoseepeoplereframingtheirbeliefs,says
Holliday.Wehavegonefromhavingveryfewstaffunderstandor
supportourmodelforcontinuousimprovementtohavingover80
percentsupport.
Onlyafter
numeroussmall
behaviorchanges
ANDsuccessdid
westarttosee
peoplereframing
theirbeliefs....
Wehavegonefrom
havingveryfew
staffunderstandor
supportourmodel
forcontinuous
improvementto
havingover80
percentsupport.
TerryHolliday,
I-SSSuperintendent
(20022009)
By2008,whenitreceivedtheBaldrigeAward,I-SShadachieved
itsvisionofperformingamongthetop-tenschoolsystemsinNorth
Carolina.Atthesametime,itmaintainedaper-pupilexpenditure
ratethatwasatleast$700belowthestateaverage,rankingitamong
thebottom-tenschoolsystemsinNorthCarolinaforcost.According
toHolliday,I-SSachievedthesenancialresultsbyconstantly
workingtoimprovetheschoolsystemsoperations;savemoneyin
suchareasasenergy,overtime,andworkerscompensation;and
reducecoststhroughimprovementsinsuchareasasbusdiscipline,
childnutrition,custodialservices,andmaintenanceservices.The
systemalsobenetedfromcollaborationwithfaith-basedand
communitypartners,gainingover$17millioningrantfundingover
sixyears.
DontcallitBaldrige(atleastatthebeginningofyour
journey).Ifyouaredealingwithacommunitythatmistrusts
changeandinnovationbasedonitsexperiences,convey
thefavorableresultsratherthanlabelingtheimprovement
methodology.
Dontallowschoolstaffmemberstogiveuponchildren,
anddontletstudentscontinuetofailuntiltheybecome
dropouts.
Dofocusonrelationshipsandbuildingtrustamong
teachersandotherschoolstakeholders.Listenandlearn.Then
addressnegativebeliefsaboutandblameforstudentlearning
bymodelingthechangeyouwanttosee:modelalearning-
centeredapproachandshowcasetheresultsitcanachieve.
Docreateapassionforlearning,reignitingthispassion
amongadults.Asaschoolleader,continuetoghttheght.
ResponsetoaWake-UpCall
TexasNameplateCompany,Inc.,isaprivatelyheldfamilybusiness
thatproducescustomnameplatesinsmall,frequentordersprimarily
forsmallbusinessesnationwideandabroad.Theseidentication
tagsandlabelsdisplayimportantusageandsafetyinformationfor
productsrangingfromhigh-pressurevalvesandoileldequipment
tocomputers.TexasNameplatebecameatwo-timeBaldrigeAward
winner in 2004; the Dallas, Texas-based small business frst received
thisnationaldistinctionin1998thesmallestbusinessevertobeso
honored.
DespitethesuccessthatledTexasNameplatetoits1998Baldrige
Award,CEODaleCrownoversaysthecompanysoonfaceda
condence-shakingcrisisawake-upcall.Letthewake-upcall
beametaphorforanyunexpectedeventthatchallengesacompany
toitscore,saysCrownover.Insurancemaymakeyounancially
whole;butthetrustandcondencethatislostmaytakeyears
torecover.
ThisinsightledCrownoverandotherTexasNameplateexecutives
toLesson1ofthe12lessonstheycitedataQuestforExcellence
conferencepresentationdescribingthecompanysmost
recentimprovementjourney:Alwaysrememberwhereyoure
comingfrom.KeepingyourresponsestotheBaldrigeCriterias
OrganizationalProle[theprefacetotheCriteria,whichasksabout
yourorganizationanditssituation]currentandreadilyaccessibleis
veryuseful,ingoodtimesandbad.
Milestones on a New Journey
Soonafterthecrisis,Crownoverandasenioremployeemetfora
longworkinglunchandarrivedatatwo-partvisionofthecompanys
future:rst,embedtheBaldrigeCriteriaintoacompanyintranet
todocumentprogressgoingforward,andsecond,embedthenext
BaldrigeAwardapplicationintoacompanyintranettomakeiteasier
tocharttheorganizationsprogressandapplyagain.
Duringthelongafternoontalk,thepairraisedanumberofcritical
questionsfortheircompanybutdidnottrytoanswerthem
immediately.Arrivingatoursharedvisionandknowingthedeeper
questionsinvolvedwasthesecondmilestone,saysCrownover.So
Lesson2isAlwaysenvisionwhereyouwanttogoand,attheleast,
beginquestioningwhatyoureallywantbygoingthere.
Crownoverarrivedatathirdmilestoneuponfacingreluctanceand
resistancefromsomeemployeeswhowerenotenthusiasticabout
pursuingtheBaldrigeAwardagain.YetCrownoverandcompany
decidednotonlytobreakoutofthetraditionalmanagementsilo,
butalsotobeginmethodicallytobreakdowntheothersilosas
well.Lesson3wasthereforeasfollows:Expectingreluctanceand
resistance,donotretreatintoyourownsilo.Rather,recognizeyour
roleaschangeagentwithinyourorganization.
Foundations for Change
TexasNameplatesfourthlessonndwisecoachesandlistento
whattheysaywasinspiredbyCrownoversexperiencesinBaldrige
examinertrainingandserviceasajudgefortheMalcolmBaldrige
NationalQualityAward,throughwhichherenedhisknowledgeof
performanceexcellence.Hefoundthattheannualtrainingsessions
wereourfourthmilestone,fortheyinspiredustostaythecoursein
spiteofcontinuingreluctanceandresistancetochange.
Bytheendof2001,TexasNameplatehadimplementedTheNew
Hotrod,anintranet-based,embeddedCriteriatoolthatgave
Crownoverandotheremployeesadailysystemsperspectiveon
ourbusiness.Theorganizationsoonmadesignicantchangestoits
informationsystemviamorethan25infrastructureprojects.Lesson5
summedupnewlearningatthatmilestone:Knowwhattheprosand
theconsareforchangingyourtechnology.Gowiththepros,and
avoidtheconsasmuchaspossible.
Theorganizationssixthmilestoneonitspost-1998improvement
journeywastherecognitionthattraditionalmanagementapproaches
sometimesthwarteditsprogresstowardchange.Nonetheless,
amongthe25-plusprojectsunderway,onesignicantlyshiftedthe
powerstructure.CalledtheJustEarningTimeandSavingResources
(JETS)program,itwaslaunchedtohelpavoidlayoffswhilekeeping
workforceskilllevelshighduringanexpecteddownturnin
businessafterSeptember11,2001.ThroughJETS,TexasNameplate
compensatedeligiblecoworkerswithtimeoffformeetingproduction
goals.ThesuccessofJETSunderscoredLesson6:Pushforwardwith
acommitmenttochangewhatyouneedorwanttochange.
Success and Trust
LearningtheJETSlessonbroughtCrownoverandhiscompanyto
Lesson7:Knowwhatsuccessmeanstoyouandwhattypeof
evidenceyouneedtocollecttoprovetoyourselvesandothersthat
youveachievedit.TexasNameplateappliedthislessontoaquest
forawayofspeakingaboutsuccesswithouthavingtorelyonthe
traditional,bottom-linenancialapproach.UsingtheBaldrige
Criteriabookletsscoringguidelines,thecompanydecidedon
thescoringlevelitwantedtoaimfor,convertedthedescriptors
oforganizationalmaturityatthatlevelintoeightconditions,and
adoptedthemasitsoperationaldenitionofsuccess.Next,the
companydeterminedwhattypeofevidenceitwouldcollectto
seewhetherithadfullledtheeightconditions.Inparticular,the
organizationcollectedsignicant,actionableevidence.
TexasNameplateseighthmilestoneonitsimprovementjourney
wasincorporatingitsstrategicplanintoTheNewHotrod:Beyond
revitalizingthestrategicplanningprocessitself,wecreatedaWeb
pagesoeveryonecouldseetheplanattheclickofabutton.This
improvementledTexasNameplatetoLesson8:Workwithfacts
madeevidentthroughyourdatacollectionefforts,andlinkthemtoa
strategicplanthatisconstantlydisplayed.
TexasNameplatehasidentieditsformofleadershipasoneof
makingdecisionsbasedonsharedinsights.Forexample,the
decision to prepare for a 2004 Baldrige Award application was based
onseniorleadersinsightthatdoingsowouldprovidemanyhelpful
opportunities.YetCrownoverandothersfoundthatsuchinsights
wereoftendelayed,ifnotblockedcompletely,byhard-to-dispel
fearsbasedonunexaminedoversights.Theyalsofoundthatbehind
suchoversightswasdistrust,whichmayhavebeenthelingering
consequenceofthecompanysjoltingwake-upcall.Going
forward,CrownoverandcolleaguesremindedeachotherthatFear
isuseless;whatisneededistrust.Lesson9emergedasfollows:
Factsbasedonevidencemaygiveyouchoices,andstrategiesbased
onfactsandreasoningaboutthemmaygiveyoujudgments,but
whenyouaremakingdecisions,patientlywaitforinsights,fearlessly
addressoversights,andndsomeoneyoutrusttohelpyoudoit.
TexasNameplatesLesson10trustyourcoworkersasmuchas
youtrustyourselvesfollowsLesson9closelyandalsorelatesto
collaboratingonaBaldrigeapplication.AccordingtoCrownover,
hiscompanysexecutivescametorealizethatTheNewHotrod
wouldbeevenmoreeffectiveiftheyinvolvedcoworkersinits
development.Wewantedtotellourstoriestoeachotherrstbefore
wetriedtotellthemtoothersinanyfutureBaldrigeapplication.
PersonalWebpagesshowhowmuchwetrusteachother.
Youliterallycant
loseintheBaldrige
process,becauseyou
willgetthefeedback
reportwhetheryou
wintheawardornot.
Oneshouldnotapply
towintheBaldrige
Awardbuttogetthe
feedbackanduse
theinformationto
obtainandsustain
highlevelsof
performance.
TexasNameplate
CEODaleCrownover
The Feedback Report and Beyond
The11thlessonforTexasNameplatewassimplytostandbyits
decisiontoapplyfortheBaldrigeAward.Thecompanyfound
reassuranceinknowingthatyouliterallycantloseintheBaldrige
process,becauseyouwillgetthefeedbackreportwhetheryou
wintheawardornot.AlsoimportanttoTexasNameplatewas
todetermineitssuccessinembeddingtheBaldrigewayintoits
business.Itsworththerisktondouthowwellyouvedoneit,
saysCrownover.
TexasNameplatesnalmilestoneonitsimprovementjourney
emergedasemployeesreadthefeedbackreportwrittenbyBaldrige
examiners.Certainly,readingaboutourstrengthswasconrming
and edifying. They got it. And, to be fair, so did we. Reading our 45
opportunitiesforimprovementencouragedus.Wewillincludemany
oftheseopportunitiesinourstrategicplanningoverthenextseveral
years.
Asthecompanyreachedthelastmilestoneofoneimprovement
journey,itapproachedtherstmilestoneofthenext.Atthejuncture
ofthetwojourneyswasonenalquestion:Howdoweknowwe
aremakingtherightdecision?Inresponse,Crownoverputforthhis
companysLesson12:Thetelltalesignofknowingyouaremaking
therightdecisionisnotwhetheryouarehappywithwhatyouhave
alreadydonealongthecurrentjourneyslevel,butwhetheryouare
enthusiasticallyreadytopursuethenextlevel.
Followingthe2010BaldrigeAwardcycle,Crownoverstated,We
didnotwinBaldrigein2010butdidreceiveasitevisit.Ourgoal
wasobtained.Disappointedwedidnotwin?Notreally.Wouldwe
havelikedtohavewon?Ofcourse.Wereceivedourfeedbacklast
month,anditwasgreat.Wearealreadyworkingonthegaps.
Dontretreatintoasilowhenfacingresistancefrom
employeesaboutaBaldrigeimprovementplan.Rather,recognize
yourroleaschangeagentwithinyourorganization.
Dontassumeallorganizationsmuststriveforthesame
success.Instead,determinewhatlevelofperformanceyour
organizationwishestoachieveandwhattypeofevidenceyouneed
tocollecttoprovetoyourselvesandothersthatyouveachievedit.
Dontletdistrustamongcoworkersdeterorganizational
decisionmaking.Patientlywaitforinsightsandfearlesslyaddress
oversights.
DokeepyourresponsestotheBaldrigeCriterias
OrganizationalProle,whichasksquestionsaboutyour
organizationanditssituation,currentandreadilyaccessiblein
goodandbadtimes.
Doenvisionwhereyouwanttogoand,attheleast,begin
questioningwhatyoureallywantbygoingthere.
DomakethedecisiontoapplyfortheBaldrigeAwardand
recognizethatyourdecisionwillprovidemanyopportunitiesto
benet.
Dostudytheprosandconsofmajorchanges(e.g.,in
technology),andavoidtheconsasmuchaspossible.
Dostaycommittedtopushingforwardwithchange.
DoreachouttoreceivetrainingandcoachingfromBaldrige
practitioners.
Dolinkthecollectionoforganizationalperformancedata
withstrategicplanning.
Dotrustyourcoworkersasmuchasyoutrustyourselfin
preparingaBaldrigeAwardapplication.
Dobereadytopursueanewimprovementjourneyeven
afteryoureceiveaBaldrigeAwardtakingyoursuccesstothe
nextlevel.
TheCriteria:
Frameworkfor
TheBaldrigeCriteriaforPerformanceExcellenceareasetof
questionsinseveninterrelatedareas(knownascategories)that
guideyouinassessingyourorganizationsperformance.Forover
20years,leadersofrole-modelU.S.organizationsinallsectors
manufacturing,service,smallbusiness,education,healthcare,
andnonprothaveusedthisframeworktoconsiderallaspects
ofrunningtheirorganizationsandtodriveimprovement.The
Criteriahelptheseleadersalignprocessesandresources;improve
communication,productivity,andeffectiveness;andachieve
2
Strategic
Planning
1
Leadership
3
Customer
Focus
5
Workforce
Focus
7
Results
6
Operations
Focus
4
Measurement, Analysis, and Knowledge Management
Organizational Profile:
Environment, Relationships, and Strategic Situation
The Criteria: Framework for Performance Excellence 81
strategicgoals.Withoutbeingprescriptive,theCriteriafocuson
criticalaspectsofmanagementthatcontributetosuccess.
RespondingtotheCriteriaquestionsisthebeginningofaBaldrige
journeytowardperformanceexcellence.Whileansweringthem
fullyisnotnecessarilyeasy,itwillhelpyouseeyourorganizations
strengths,opportunitiesforimprovement,andgapsmoreclearlyso
youcanmoveforwardwithwell-informedactions.
Category1:Leadership
Leadership,therstoftheBaldrigeframeworkssevencategories,has
twopartsknownasitemscoveringseniorleadershipintherst,
andgovernanceandsocietalresponsibilitiesinthesecond.Therstitem
asksquestionsdesignedtohelpyouexaminehowyourpersonalactions
asanexecutiveguideandsustainyourorganization.Forexample,
How do senior leaders set your
organizationsvisionandvalues?
How do senior leaders deploy your
organizationsvisionandvalues
throughyourleadershipsystem,to
theworkforce,tokeysuppliersand
partners,andtocustomersandother
stakeholders,asappropriate?
ThesequestionslikethoseinalltheCriteriacategoriesare
designedtobebothtimelyandtimeless.Afterall,acrossindustries
today,leadersmustconveytheirorganizationsvisionsandvaluesin
thefaceofexpandingorconvergingrelationswithpartners,subunits,
suppliers,andnewstakeholders,andamidmergers,acquisitions,
andshiftingalliancesintheglobaleconomy.Additionally,in
theeducationsector,superintendentsneedtomaintainstrong
partnershipswithschoolboards.Andhospitalexecutivesmust
strengthentheirpartnershipswithphysiciansinordertosucceed.
HowcantheCriteriaquestionshelpyou?Answeringquestionssuch
astheonesabovewilltellyouwhetheryouhavesystematic,effective
methodsintheseareas;whetherallemployeesandworkareasuse
thesemethods;andwhetherthemethodsareintegratedwiththosein
otherkeyareasofyourorganization.
EthicsandSustainability:The
FoundationforRole-ModelResults
Visionaryleadersembracetheneedforethicalbehaviorand
stakeholdertrust,understandingthattheseresponsibilitiesdriveand
supportotherresults.Fromsurveysonethicalbehaviorandintegrity
amongmanagementandtheworkforce,totrainingonethics,the
trackingofethicalbreachesandviolations,codesofconduct,
andcompliancewithregulationsandstandards,BaldrigeAward
winnerslookforopportunitiestoexceedrequirementsandtoexcel
inareasoflegalandethicalbehavior.Theyalsocontributetothe
sustainabilityoftheirenvironmental,social,andeconomicsystems,
withapproachestoreduceenergyusage,emissions,andchemical
usage,aswellastorecyclewaste.Inaddition,BaldrigeAward
winnershavetrackedandsurpassedtheirgoalsforsafetyawareness
andcontributionstotheUnitedWayandothercommunity
organizations,amongothersocialresponsibilitymeasures.Following
isasamplingoftheirresults:
95% improvement in employees feeling that their
managementactswithintegrity,accordingtosurvey
results, over 4 years. This represents an annual improvement
ofnearly32%.(CCM,BaldrigeAwardwinnerin
manufacturingsector)
Performance better than the best-in-class benchmark
(Haycompanies20high-performingorganizations)for
themeasureemployeecondenceinleadership,a10%
overall improvement over 4 years (MEDRAD, Inc., two-time
BaldrigeAwardwinnerinmanufacturingsector)
2,300% overall increase in employees attending ethics
training over 4 years (Motorola, Inc., Commercial,
GovernmentandIndustrialSolutionsSector[CGISS;
nowMotorolaSolutions],BaldrigeAwardwinnerin
manufacturingsector)
95% level of agreement from employees responding to
anethicssurveyitem,Iamexpectedtomaintainahigh
standardofethics,inthemostrecentyeardatawere
reported(DynMcDermottPetroleumOperationsCompany
[nowDMPetroleumOperationsCompany],BaldrigeAward
winnerinservicesector)
100% improvement over 4 years onitsmeasureofethical
incidentoccurrences,improvingfromanaverageof1.5in
2003tozeroin2006(MESAProducts,Inc.,BaldrigeAward
winnerinsmallbusinesssector)
Steady favorable results on employee perceptions of
leadershipsethicalbehavior,from a rating of 4.5 out of
5 in 2007 to 4.6 in 2009, according to an annual employee
survey(theCenter,BaldrigeAwardwinnerinnonprot
sector)
94% employee rating on leaderships ethics and integrity,
accordingtosurveyresults,inthemostrecentyeardata
werereported.Thatlevelimprovedfrom91%theprevious
year.(CityofCoralSprings,BaldrigeAwardwinnerin
nonprotsector)
Sustained low rate of zero to 1 on its measure of fraud or
ethicsviolationsbyemployeesforthe5yearsleadingup
toitsBaldrigeAward(ARDEC,BaldrigeAwardwinnerin
nonprotsector)
88% reduction in emissionsover7years.Inaddition,
57%ofnonhazardouswasterecycledintheyearbefore
itreceivedtheBaldrigeAward.(Motorola,Inc.CGISS,
BaldrigeAwardwinnerinmanufacturingsector)
85% reduction in plate material wasteover7years(Clarke
AmericanChecks[nowHarlandClarke],BaldrigeAward
winnerinmanufacturingsector)
7% annual improvement in nonmetallic recycling for 4
years(PRO-TEC,BaldrigeAwardwinnerinsmallbusiness
sector)
50% reduction in volatile organic compound emissions
over3years(Branch-SmithPrintingDivision,Baldrige
Awardwinnerinsmallbusinesssector)
31% reduction in amount of hazardous chemicals and
74%increaseinuseofenvironmentallyfriendlywater-
basedformulations over 4 years (Stoner, Baldrige Award
winnerinsmallbusinesssector)
75th percentile in a national Press Ganey comparison on
itsmeasureofemployeetrustinseniorleaders(Heartland
Health,BaldrigeAwardwinnerinhealthcaresector)
Level of 99% or better in common goal of employees
completingethicstraining(8of11BaldrigeAwardwinners
inthehealthcaresectorwiththisresult)
100% employees trained on ethical behaviorandzero
violationsforBoardofEducationEthicsCodeinthe5
schoolyearsleadinguptoitsBaldrigeAward.Inaddition,
15%reductioninschoolhandbookviolationsper100
students,a3%improvementperyear(I-SS,BaldrigeAward
winnerineducationsector)
ZeroethicalviolationsforBoardofEducationCodeof
Ethics,StudentCodeofConduct,andAthleteCodeof
Conduct.Inaddition,100%compliancerecordforSpecial
EducationandIndividualswithDisabilitiesActregulations
(PearlRiverSchoolDistrict,BaldrigeAwardwinnerin
educationsector)
Zero violations or citations of legal, ethical, regulatory, or
operationalresponsibilitiesfortheveyearsleadingupto
itsBaldrigeAward.Inaddition,outof182U.S.business
schoolsonanEBIstudentsatisfactionsurvey,Monfort
Collegerankedinthetop2.5%onbothitemsrelatedto
curriculum/teachingofethicsandsocialresponsibility
issues.(KennethW.MonfortCollegeofBusiness,Baldrige
Awardwinnerineducationsector)
Zero violations of the Board of Education Code of Conduct
andnostaffviolationsofethicalpracticesasstatedin
boardpolicyinatleast18years(CommunityConsolidated
SchoolDistrict15,BaldrigeAwardwinnerineducation
sector)
Category2:StrategicPlanning
TheStrategicPlanningcategoryguidesyouinexamininghowyour
organizationdevelopsstrategicobjectivesandactionplans,aswell
ashowyouimplement,change,andmeasureprogressonthose
objectivesandplans.Therstiteminthiscategoryaskshowyou
developyourstrategytoaddressthepressuresonyourorganization
andleverageitsmarketplaceadvantages.Forexample,
Howdoyourstrategicobjectivesachievethefollowing?
address your strategic challenges and advantages
address your opportunities for innovation in products,
operations,andyourbusinessmodel
capitalize on your current core competencies
1
andaddressthepotentialneedfornewcorecompetencies
balance short- and longer-term challenges and
opportunities
consider and balance the needs of all key stakeholders
enhance your ability to adapt to sudden shifts in your
marketconditions
Category3:CustomerFocus
TheCustomerFocuscategoryguidesyouinexamininghow
yourorganizationengagescustomerstoattainlong-termsuccess
inthemarketplace,includinghowyoulistentothevoiceof
thecustomer,buildcustomerrelationships,andusecustomer
informationtoimproveandidentifyopportunitiesforinnovation.
1
Thetermcorecompetenciesreferstoyourorganizationsareasofgreatestexpertise.
Yourorganizationscorecompetenciesarethosestrategicallyimportantcapabilities
thatarecentraltofulllingyourmissionorprovideanadvantageinyourmarketplace
orserviceenvironment.Corecompetenciesfrequentlyarechallengingforcompetitors
orsuppliersandpartnerstoimitate,andtheymayprovideasustainablecompetitive
advantage.Absenceofaneededorganizationalcorecompetencymayresultina
signicantstrategicchallengeordisadvantageinthemarketplace.Corecompetenciesmay
involvetechnologyexpertise,uniqueserviceofferings,amarketplaceniche,oraparticular
businessacumen(e.g.,businessacquisitions).
Forexample,questionsinthiscategoryaskhowyoulisten
tocustomersandgaininformationontheirsatisfactionand
dissatisfaction,howyoudeterminewhatproductstoofferand
communicatewithcustomerstosupportthem,andhowyoumanage
customerrelationshipsandcomplaints:
How do you listen to customers to obtain actionable
information?
How do you market, build, and manage relationships with
customerstoacquirecustomersandbuildmarketshare;
retaincustomers,meettheirrequirements,andexceed
theirexpectationsineachstageofthecustomerlifecycle
(eachstageoftheirrelationshipwithyou);andincrease
theirengagementwithyou?
Category4:Measurement,Analysis,
andKnowledgeManagement
TheMeasurement,Analysis,andKnowledgeManagementcategory
examineshowyouselect,gather,analyze,manage,andimprove
yourorganizationsdata,information,andknowledgeassets.Other
questionsfocusonhowyoumanageinformationtechnology
andhowyouuseorganizationalreviewndingstoimproveyour
organizationsperformance.Forexample,
How do you select, collect, align, and integrate data and
informationfortrackingdailyoperationsandoverall
organizationalperformance,includingprogressrelativeto
strategicobjectivesandactionplans?
What are your key organizational performance measures,
includingkeyshort-andlonger-termnancialmeasures?
How frequently do you track these measures?
How do you use these data and information to support
organizationaldecisionmakingandinnovation?
Category5:WorkforceFocus
TheWorkforceFocuscategoryaskshowyourorganizationassesses
thecapabilitiesandstafnglevelsyouneedinyourworkforceand
buildsanenvironmentthatwillleadtohighperformancebyyour
workforce.Otherquestionsexploreyourabilitytoengage,manage,
anddevelopyourworkforcewiththeaimofusingitsfullpotentialin
alignmentwithyourmissionandstrategy.Forexample,
How do you assess your workforce capability and capacity
needs,includingskills,competencies,andstafnglevels?
How does your workforce performance management
systemsupporthigh-performanceworkandworkforce
engagement;considerworkforcecompensation,reward,
recognition,andincentivepractices;andreinforcea
customerandbusinessfocusandachievementofyour
actionplans?
Category6:OperationsFocus
TheOperationsFocuscategory(whichwastheProcessManagement
categoryuntiltherevised20112012Criteria)guidesyouin
examininghowyourorganizationdesigns,manages,andimproves
thesystemsitusestoaccomplishitswork,includingallexternaland
internalresources.Otherquestionsaskhowyoudesign,manage,
andimprovethekeyprocessesyouusetoimplementthosework
systemsinawaythatdeliverscustomervalueandleadstosuccess
andsustainabilityforyourorganization.Anadditionalfocusis
yourorganizationsreadinessforemergencies.Heresasamplingof
category6questions:
What are your organizations work systems?
How do you manage and improve your work systems to
delivercustomervalueandachieveorganizationalsuccess
andsustainability?
Category7:Results
TheResultscategoryguidesyouinanalyzingandreviewingresults
dataandinformationinallkeyareasofyourorganizationproduct
performanceandprocesseffectiveness,customers,workforce,
leadershipandgovernance,andnancialandmarketperformance.
Questionsfocusonyourorganizationsperformancerelativetothat
ofyourcompetitorsandotherorganizationswithsimilarofferings,as
appropriate.
Thequestionsintherstoftheveresultsitemsaskfordataand
informationontheperformanceofyourorganizationskeyproducts
(includingstudentlearningresultsineducationorganizationsand
healthcareresultsinhealthcareorganizations),aswellasprocess
effectivenessandefciencyresults.Asappropriate,youreport
yourresultsseparatelyforeachofyourproductofferings,customer
groups,marketsegments,andprocesstypesandlocations,and
includeappropriatecomparativedata.Herearesomesample
questions:
What are your current levels and trends in key measures
orindicatorsofproductandprocessperformancethatare
importanttoanddirectlyserveyourcustomers?
How do these results compare with the performance of
yourcompetitorsandotherorganizationswithsimilar
offerings?
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TheDilbertcomicstrip
spoofedtheBaldrigeProgram
inthemid-1990s.
t
HowCanthe
BaldrigeProgram
HelpYouNow?
IntegratingtheBaldrigeCriteriaintoyourorganizationisnoteasyor
aquickx.Butresultsshowthatadoptingthemcanleadtoworld-
classresultsfromproductandprocessoutcomes,tocustomer-
focusedoutcomes,toworkforce-focusedoutcomes,toleadership
andgovernanceoutcomes,tonancialandmarketoutcomes.But
whatarethenextsteps?HowcantheCriteriahelpyounow?
Self-Assessing
TheBaldrigeWebsiteincludesmanytoolsthatmayprovideyou
withinsightintoyourorganizationscurrentlevelofperformance
andopportunitiesforimprovement.Allthetoolsarefreeto
downloadanddistribute.Herearesomeexamples:
Are We Making Progress? andAreWeMakingProgress
asLeaders?arequestionnairesforyourworkforceand
leadersthatwillhelpyouassessyourorganizations
performanceandlearnwhatyoucanimprove,aswellas
focusimprovementandcommunicationeffortswhereyour
workforcefeelstheyaremostneeded.
How Can the Baldrige Program Help You Now? 93
easyInsight:TakeaFirstStepTowardaBaldrigeSelf-
AssessmentisaquestionnairebasedontheBaldrige
CriteriasOrganizationalProle.Thisself-assessmenttool
willhelpyoumeasureyourorganizationagainstothersthat
havetakenthechallenge.Thenyoucanidentifythegapsin
yourorganizationsperformanceanddevelopactionplans
foryourjourneytowardperformanceexcellence.
The OrganizationalProle(theprefacetotheBaldrige
Criteria)providesaperfectframeworkforyoutoensure
acommonunderstandingaboutyourorganization,select
informationandcollectdataasyoucontinueyourself-
assessment,andidentifygapsinyourapproachesandtheir
deploymentasabasisforperformanceimprovementefforts.
ApplyingforFeedbackandanAward
ManyorganizationsthathaveintegratedtheCriteriaforPerformance
ExcellenceintotheirownbusinessmodelsapplyfortheMalcolm
BaldrigeNationalQualityAward,thenationshighesthonorfor
organizationalperformancegivenbythePresidentoftheUnited
Statesoroneofhisdirectreports.Theorganizationsfeaturedinthis
bookhaveallreceivedthishonorbyusingtheirresponsestothe
CriteriaforPerformanceExcellenceasanawardapplication.State
andlocalBaldrige-basedprogramsthroughoutthecountryalsooffer
educationalservicesdesignedfororganizationsnewtoBaldrige,
andtheytoohaveawardprograms,usuallywithvariedtiers.Many
aregroupedaspartoftheAllianceforPerformanceExcellence,a
nonprotnationalnetworkthataimstoenhancethesuccessand
sustainabilityoforganizations.Inallawardprograms,atthelocal,
state,ornationallevels,awardapplicantsreceivefeedbackreports
writtenbytrainedexaminersthatdetailtheorganizationsstrengths
andopportunitiesforimprovement.
BenchmarkingRoleModels
andSharingBestPractices
BaldrigeAwardwinnersarerole-modelorganizationsthatareready
tosharetheirbestpractices.OntheBaldrigeProgramsWebsite,
youcanreadtheirsuccessstoriesandreviewtheirBaldrigeAward
applicationsummaries,whicharecondensedversionsoftheiractual
BaldrigeAwardapplications.Usingcontactinformationfoundon
theBaldrigeWebsite,youcancontacttheBaldrigeAwardwinners
directlyformoreinformationontheirbestmanagementpractices
and,ifapplicable,visitthemforsharingdaysandbenchmarking.
YoualsocanattendpresentationsbymultipleBaldrigeAward
winnersattheannualQuestforExcellenceconferenceheldeach
AprilinWashington,D.C.,andatthefallregionalconferencesheld
throughouttheUnitedStates.Finally,youcanlistentoonlinevideos
onhowBaldrigeAwardwinnersgotstartedwithBaldrigeandsee
portionsoftheirpresentations.
Baldrige Award Winners (1988 through 2010)
3M Dental Products Division (now known as 3M ESPE Dental
Products;1997)
ADAC Laboratories (1996)
Advocate Good Samaritan Hospital (2010)
Ames Rubber Corporation (1993)
Armstrong World Industries, Inc., Building Products Operations
(1995)
AT&T Consumer Communications Services (now known as the
Consumer Markets Division of AT&T; 1994)
AT&T Network Systems Group Transmission Systems Business Unit
(nowpartofAlcatel-Lucent;1992)
AT&T Universal Card Services (now part of Citigroup, Inc.; 1992)
AtlantiCare (2009)
Baptist Hospital, Inc. (2003)
BI (1999)
Boeing Aerospace Support (now known as Boeing Support
Systems;2003)
Boeing Airlift and Tanker Programs (now known as Boeing Global
MobilitySystems;1998)
Branch-Smith Printing Division (2002)
Bronson Methodist Hospital (2005)
Cadillac Motor Car Company (1990)
Cargill Corn Milling North America (2008)
Caterpillar Financial Services Corporation-U.S. (2003)
Chugach School District (2001)
City of Coral Springs (2007)
Clarke American Checks, Inc. (now known as Harland Clarke; 2001)
Community Consolidated School District 15 (2003)
Corning Incorporated Telecommunications Products Division
(1995)
Custom Research Inc. (now known as GFK Custom Research, Inc.;
1996)
Dana Commercial Credit Corporation (now part of Dana Holding
Corporation;1996)
Dana CorporationSpicer Driveshaft Division (now known as Dana
CorporationTorqueTraction;2000)
DynMcDermott Petroleum Operations Company (now known as
DMPetroleumOperationsCompany;2005)
Eastman Chemical Company (1993)
Federal Express Corporation (1990)
Freese and Nichols Inc. (2010)
Globe Metallurgical Inc. (now part of Globe Specialty Metals, Inc.;
1988)
Granite Rock Company (now known as Graniterock; 1992)
GTE Directories Corporation (now part of Verizon Information
Services; 1994)
Heartland Health (2009)
Honeywell Federal Manufacturing & Technologies, L.L.C. (2009)
IBM Rochester (1990)
Iredell-Statesville Schools (2008)
Jenks Public Schools (2005)
K&N Management (2010)
KARLEE Company, Inc. (2000)
Kenneth W. Monfort College of Business (2004)
Los Alamos National Bank (2000)
Marlow Industries, Inc. (1991)
MEDRAD, Inc. (2003 and 2010)
Mercy Health System (2007)
Merrill Lynch Credit Corporation (1997)
MESA Products, Inc. (2006)
MidwayUSA (2009)
Milliken & Company (1989)
Montgomery County Public Schools (2010)
Motorola Commercial, Government and Industrial Solutions
Sector(nowpartofMotorolaGovernmentandEnterpriseMobility
Solutions;2002)
Motorola, Inc. (1988)
Nestl Purina PetCare Company (2010)
North Mississippi Medical Center (2006)
Operations Management International, Inc. (now known as CH2M
HILL;2000)
Pals Sudden Service (2001)
Park Place Lexus (2005)
Pearl River School District (2001)
Poudre Valley Health System (2008)
Premier Inc. (2006)
PRO-TEC Coating Company (2007)
Richland College (2005)
Robert Wood Johnson University Hospital Hamilton (2004)
Saint Lukes Hospital of Kansas City (2003)
Sharp HealthCare (2007)
Solar Turbines Incorporated (1998)
Solectron Corporation (1991 and 1997)
SSM Health Care (2002)
STMicroelectronics, Inc.Region Americas (1999)
Stoner, Inc. (2003)
Studer Group (2010)
Sunny Fresh Foods, Inc. (now known as Cargill Kitchen Solutions;
1999and2005)
Texas Instruments Incorporated Defense Systems & Electronics
Group(nowpartofRaytheonCompany;1992)
Texas Nameplate Company, Inc. (1998 and 2004)
The Bama Companies, Inc. (2004)
The Ritz-Carlton Hotel Company, L.L.C. (now part of Marriott
International;1992and1999)
Trident Precision Manufacturing, Inc. (1996)
U.S. Army Armament Research, Development and Engineering
Center(2007)
University of Wisconsin-Stout (2001)
Veterans Affairs Cooperative Studies Program Clinical Research
PharmacyCoordinatingCenter(2009)
Wainwright Industries, Inc. (1994)
Wallace Co., Inc. (1990)
Westinghouse Electric Corporation Commercial Nuclear Fuel
Division(1988)
Xerox Business Services (1997)
Xerox Corporation Business Products & Systems (1989)
Zytec Corporation (now part of Artesyn Technologies; 1991)
Formoreinformation,includingorganizationalcontactsand
locations,proles,onlinevideos,andBaldrigeAwardapplication
summaries,visittheBaldrigePerformanceExcellenceProgram
Web site at http://www.nist.gov/baldrige/.
Appendix:Examples
byCriteriaCategory
ThefollowingsamplingofBaldrigeAwardwinnersprocesses
andresultsisprovidedtoexemplifyeachofthesevenCriteria
categories.Theinformationandgraphicsarecurrentasoftheyear
eachorganizationwontheBaldrigeAward.However,thefeatured
processesandresultsdonotnecessarilydemonstratecurrentbest
practicessinceorganizationsthatusetheCriteriaaimtoachieve
continuousimprovementsandinnovations.
Category1
PremierInc.,a2006BaldrigeAwardwinner,isarolemodelthat
hasdemonstrateditseffectiveandinnovativeleadership.Atthe
2007QuestforExcellenceconference,PremierInc.Presidentand
CEORichardNorlingdiscussedthefoundationsofhiscompanys
visioningprocess.Afterrecountinghowhishealthcarealliance
wasformedin1996throughamergerofthreesmalleralliances,
hestressedthatembeddingBaldrigewascrucialtoourshaping
Premiersuccessfullyfromthesebeginnings.
Withasharedpurposeofimprovingthehealthofcommunities,
PremierInc.executivessetagoalthatwouldextend2030years
out.ThatgoalenvisionedthatthePremierhealthcarealliances
owners(200ormorenonprothealthcareprovidersandhealth
Appendix: Examples by Criteria Category 99
systemorganizations)wouldbethehighest-qualityandmostcost-
effectivehealthcaresystemsintheirmarketsandthatthealliance
wouldbecomethemajorinuenceinreshapinghealthcare.Toalign
theorganizationwiththisgoal,PremierInc.leaderssetouttoensure
thattheorganizationscorerolesandstrategieswouldaimtowardits
achievementandthatcorevalueswouldsupportit.
SaidNorling,Overtheyears,andwithsomegreatinsightfrom
ourBaldrigeassessmentfeedbackreports,wehaveputinplacean
overallleadershipsystemusedincommonbyallourmanagers.
Itgivesthemacommon-vocabularybasisforthefunctionsthey
perform,keepsbeforeustherequirementsofleadingandmanaging,
andservesastheintegratorandsummarypointofourothermain
processes.HeaddedthatBaldrigehelpedusestablishwhatsteps,
functions, and areas our leadership/management system needs to
includeinordertomeettheCriterianotonlystrategicplanning,
forexample,butsuchthingsasrewardandrecognitionand
organizationallearning.
MercyHealthSystem,a2007BaldrigeAwardwinner,provides
anotherexampleofexcellenceinleadership.Theleadersofthe
Janesville,Wisconsin-basedhealthcareorganizationdemonstrate
theirpersonalcommitmenttotheorganizationsvaluesandserve
asrolemodelsofthosevaluesthroughMercysservantleadership
MercysServantLeadership
ValueProducers
Doctors Therapists Nurses
ValueEnhancers
VPs Directors
ValueSupporters
Clerks Housekeepers
Synthesizers
CEO
CMO
(depictedinthegraphiconpage100).Thisapproachinvertsthe
traditional,top-downmanagementstylesuchthatorganizational
leadersbecomefacilitatorswhoservetheworkforce,whosemembers,
inturn,providevaluetopatientsandotherstakeholders.Toensure
thattheentireorganizationusesservantleadershipconsistently,
MercysleadersaretrainedonthephilosophyattheMercyInstitute
forLeadershipExcellenceandtheLeadershipDevelopmentAcademy.
VeteransAffairsCooperativeStudiesProgramClinicalResearch
PharmacyCoordinatingCenter,whichreceivedtheBaldrigeAward
in2009,alsodemonstratesexcellenceinleadership.Oneway
executivesoftheAlbuquerque,NewMexico-basedorganization
personallypromotelegalandethicalbehavioristhroughapopular
coursetakenbytheentireworkforce:TheCodeoftheWest:Ethics
theCowboyWay.TheCowboyEthicsProgramsetsbehavioral
expectationsforemployeesandconveysthemthroughbeliefssuch
asliveeachdaywithcourage;takeprideinyourwork;betough,
butfair;andrideforthebrand.
Asanotherexampleofrole-modelleadership,NestlPurinaPetCare
Company,a2010BaldrigeAwardwinnerinmanufacturing,has
establisheditsvisionandvaluesbasedonfourprinciplesofthe
companysfounder:StandTall,ThinkTall,SmileTall,andLiveTall.
SeniorleadersoftheSt.Louis,Missouri-basedcompanyhaveadded
a5thTall:Wecreatetallwithinnovation.Theycommunicate
theseidealsthroughmanymeansandensurethattheyareintegrated
withcompanystrengthsandprocesses,includingemployee
recruitmentandhiring.
HeartlandHealth,a2009BaldrigeAward
winner,demonstratesexcellenceinleadership
andsocialresponsibilityinitsvisionofand
commitmenttocommunityhealth.BasedinSt.
Joseph,Missouri,thisnonprot,community-
basedintegratedhealthsystemhasdevelopeda
three-tiered,collaborativeapproachtoimproving
thehealthoftheresidentsoftheMissouri,
Kansas,Nebraska,andIowacommunities
itserves.Thisapproachisvisualizedasa
pyramidofthreelayersthatillustrateshow
theorganizationsentitiesworktogetherto
accomplishacommonvisionofmaking
HeartlandHealthanditsserviceareasthebest
andsafestplacesinAmericawherepeople
canreceivehealthcareandliveahealthyand
productivelife.Thisvisionismaintainedinplain
sightthroughitsintegrationatallfourentitiesoftheorganization:
HeartlandRegionalMedicalCenter,HeartlandClinic,Community
HealthImprovementSolutions,andHeartlandFoundation.
HeartlandHealthparticipatesinacommunity-wideplanningprocess
thataddressessevenareasofpublichealth:healthykids,deliberate
safety, healthy/active elderly, community-wide mental health,
optimalcostandaccesstohealthcare,healthylifestyles,andhealth
management.Thisapproachhasledtothedevelopmentofinitiatives
suchasemPowerU,astate-of-the-arttechnologylearningcenter
managedbyHeartlandHealthsfoundationthatoffersprogramsto
supportyouthandpromotecommunityhealth.
Category2
2007BaldrigeAwardwinnerCityofCoralSprings,Florida,has
demonstratedexcellenceinstrategicplanningbyinvolvingall
citizens,includingbusinessowners,increatingasharedvision
forthefuture.CoralSpringsgathersinputfromcitizensthrough
acitywideannualsurvey,focusgroups,transactionsurveys,an
automatedcomment-and-complaintsystem,theCityHallinthe
Mall,advisoryboardsandcommittees,communityvisioningforums,
CoralSpringsStrategicPlanning
DataAnalysis CitizenInput
Strategic Plan
Business Plan
Budget
OutputtoCitizens
andannualSliceoftheSpringsmeetings.Basedoninputfrom
theseforumsandonkeyenvironmentalandperformancedata,the
cityestablishesthestrategicplan,whichincludesstrategicpriorities,
directionalstatements,goals,corevalues,andkeymeasuresof
intendedoutcomes.Asillustratedinthegureontheprevious
page,thestrategicplan,inturn,drivesthecitysoperationalplan,
itsbudgets,andtheservicesitprovidestocitizens,whothengive
feedbackthatbecomesinputforthenextplanningprocess.
FreeseandNicholsInc.,a2010BaldrigeAwardwinnerinthesmall
businesscategory,alsodemonstratesstrategicplanningexcellence.
Themultiserviceengineering,architecture,andenvironmental
scienceconsultingrmusesayear-longstrategicplanningprocessto
identifyindicatorsinkeyfocusareas,aswellascriticalactionsand
measures,foritsbalancedscorecard.Representativesfromallareas
oftheorganizationparticipateintheprocess.Andamanagement-
levelFuturesCommitteeexaminestrendsandchangesthatare
likelytoimpacttherminveto15years.Inaddition,therm
usesacatch-ballprocesstocascadeplansdowntotheindividual
levelwithintheorganizationinordertoensureacommitmentof
resourcestocarryouttheplannedstrategies.
FreeseandNicholssAnnualStrategicPlanningProcess
Establish
Strategic
Direction
External
Scan
Strategic
Imperative
Revised
Mission/
Vision/Guiding
Principles
Market
Scan
Develop
Strategies
andPlans
Market &
Service
Strategies
Growth
Strategies
Capability
Strategies
Goals and
Actions
Deploy
Strategies
andPlans
Freese and
Nichols Inc.
Planning
Retreat
Group Annual
Operating Plan
Retreats
Annual
Operating Plan
Budget
Individual
Dev. Plans
2010BaldrigeAwardwinnerMontgomeryCountyPublicSchools
(MCPS)providesanotherexampleofexcellenceinstrategic
planning.Thisexcellenceisseeninthesystematicalignmentof
thestrategicplan,OurCalltoAction:PursuitofExcellence(OCA),
withactionsateveryleveloftheschoolsystem.TheOCA,rooted
intheschooldistrictsvision,mission,values,goals,andacademic
priorities,alsoalignswiththeMarylandStateBoardofEducations
masterplanandfederaleducationrequirements.Theplanreects
thesharedconcernsandexpectationsofthedistrictspartners,
customers,andcommunitymembersasaresultofseniorleaders
extensiveoutreacheffortstothem.Andtheplancascadesdownward
such that each offce, department, and school in the 144,000-student
systemhasdevelopedrelatedimprovementplansandperformance
measures.Thewell-alignedplansenablethesuburbanD.C.school
districttodevelopanddeliverrigorousinstructionthatmeets
studentsindividualneeds.
Category3
Ritz-CarltonHotelCompany,a1992and1999BaldrigeAward
winner,demonstratesexcellenceincustomerfocus.Thecompanys
CustomerLoyaltyandSatisfactionSystem(C.L.A.S.S.;depictedin
thegurebelow)andtheMystiquesystemdevelopedinmorerecent
years,forexample,haveenabledRitz-Carltontorememberthe
individualservicepreferencesofhundredsofthousandsofguestsby
documentingandstoringinformationonguestslikesanddislikesin
adatabase.Suchapproacheshaveallowedthecompanysworkforce
andsupplierstoknowwhatisdistinctiveabouteachcustomeror
eventattheRitz-Carltonshotels.FormerRitz-CarltonVicePresident
ofOperationsJohnTimmermanhasnotedthat,throughprocesseslike
C.L.A.S.S.,theRitz-Carltoncanadjustitsofferingstochangessuchas
thelessformalstyleofservicenowrequiredbymanycustomers.
Ritz-Carltons
C.L.A.S.S.
GuestPreference
Name:
Likes:
Dislikes:
Knowledge
ofIndividual
Customers,
Storedin
C.L.A.S.S.
Likes/Dislikes
Previous Difficulties
Family Interests
Personal Interests
Preferred Credit Cards
Recent and Frequent Use:
The Ritz- Carlton, Naples
Other Ritz-Carlton Hotels
Lifetime:
Usage
Amount of Purchase
AtlantiCare,a2009BaldrigeAwardwinner,isalsoarolemodelin
itsfocusoncustomers.Throughave-phase,voice-of-the-customer
inquiryprocess,the
southeasternNewJersey
healthcareprovidergathers
theneedsandpreferences
ofitspatientsandother
stakeholders.AtlantiCare
usesthisinputtoidentify
healthcareservicesand
innovationsthatwillsatisfy
customers.Information
fromfocusgroupsheld
byAtlantiCareledtothedevelopmentoftheAccessCenter,a
multilingualtelephoneinformationserviceforthecommunitythat
includes a 24-hour, Web-based, self-service feature. The Access
CentermetpatientsneedforexpandedaccesstoAtlantiCareand
helpedthemnavigatethehealthcaresystem.Ameasureofthe
AccessCenterssuccessisthatthenumberofreturningcallerstripled
from2006to2008.
SharpHealthCarealsoexemplies
excellenceincustomer
focus.ThroughtheCustomer
KnowledgeSystemandmultiple
waysoflisteningtothevoice
ofthecustomer,theSanDiego,
California-basedhealthcare
organizationsystematically
identies,considers,andtakes
actiontomeetcustomerneeds
andpreferences.Sharpsworkforce
isempoweredtouseawiderange
oftoolstoidentifytheneeds,
expectations,andpreferencesof
former,current,andpotentialcustomersandpartnersatalllevels.
ThisinformationisintegratedintoSharpsstrategicplanning,goal
setting,programdevelopment,workprocessredesign,selectionof
technology,andconsumermarketing.
Assess Customer Group &
Target Segment Research
Receive Customer Group
Feedback (Listening &
Learning Tools)
Analyze Learning
Develop Marketing Plans
Implement Strategies
Measure Results
Communicate
Results
SharpHealthCares
Customer
KnowledgeSystem
Category4
TexasNameplateCompany,Inc.,aBaldrigeAwardwinnerin1998
and 2004, demonstrates excellence in measurement, analysis, and
knowledgemanagement.Thissmallbusinesshasusedcustomized
software(includingSimon,Real-TimeDashboard,andPipeline
Dashboard)onaWeb-browser-basedintranetknownasTheNew
Hotrodtoshareandanalyzedatainsupportofdecisionmaking
andinnovation.OnTheNewHotrod,thecompanydocumentsthe
factsofitsbusinessinWebpagesthatareconstantlyupdatedwith
real-timeinformation,andemployeesmaymaintaintheirownWeb
pagestoshareinformation.Thecompanyrenesitsworkprocesses
asthesignicanceofdatabecomesapparent.ForTexasNameplate,
theresultsofthiseffectivemanagementoforganizationalknowledge
havebeeninnovationandimprovedintegration.
TexasNameplatesTheNewHotrod
2007BaldrigeAwardwinnerU.S.ArmyArmamentResearch,
DevelopmentandEngineeringCenter(ARDEC)hasdemonstrated
excellenceinitsconsistentuseoffact-baseddecisionmaking.
Asillustratedinthegurebelow,ARDECassemblesandtransfers
relevantknowledgeforuseinstrategicplanningthroughits
PerformanceAssuranceSystem.Withthissystem,ARDECensures
thatitsperformanceisalignedwithandsupportsitsoverall
strategy.Employeesateachoftheorganizationsdirectoratesgather
competitiveandcomparativedataduringstrategicplanning.ARDEC
usesthesedatatoensurethatitremainsthemostinnovativesupplier
ofarmamentsolutionswhilemeetingitscustomersrequirementsfor
cost,schedule,andperformance.
ARDECsPerformanceAssuranceSystem
Strategic Planning Process
Strategic Objective/End
Determine Measures, Assign Owners, Align
with Strategic Initiatives/Way
Determine Who Reviews and
at What Frequency
Collect and Validate Data
Communicate Results Report via Strategic
Management System, Compare to Target
No
Target
Met?
Yes
Gap Analysis/
Action Plan
Revision
Improvement
Cycle
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Daily, Weekly, Monthly, Quarterly, Annual Scorecard,
Reports and Responsive Ad-Hoc Reporting
Category5
2009BaldrigeAwardwinnerHoneywellFederalManufacturing
&Technologies,L.L.C.(FM&T)hasmodeledexcellenceinits
workforcefocus.Themanagementandoperatingcontractorof
aNationalNuclearSecurityAdministrationplantinKansasCity,
Missouri, among other contract locations, has a workforce of 2,704.
Theyservegovernmentandprivate-sectorclientsinmultidisciplinary
engineeringandmanufacturingoperations.ThroughtheEnterprise
AlignmentProcess,thecompanylinksthedailyaccountability
ofitssalariedandhourlyemployeestoitsbalancedscorecardof
performancemeasuresanditsstrategicplan.Theresulthasbeen
highlevelsofemployeesatisfactionasmeasuredbysurveyscores.
Seventy-twopercentofthecompanysemployeesagreedthatthey
feltappreciated,and81percentagreedthatmanagementlistenedto
theirideas.Inaddition,72percentweresatisedwiththepositive
environment,and80percentweresatisedwiththeinformation
providedtothem.Inalloftheseareas,FM&Tsworkforcehadhigher
satisfactionsurveyscoresthantheorganizationscompetitors,who
arebest-in-classcommercialmanufacturers.
2007BaldrigeAwardwinnerMercyHealthSystemhasalso
demonstratedexcellenceinworkforcefocus.Thehealthcare
organizationscommitmenttoengagingandsatisfyingworkforce
members,whoarecalledpartners,isconveyedthroughits
three-prongedapproach:inform,involve,andcelebrate.As
partofinform,theMercyLeadershipGroupcommunicates
inwaysthatensurethattheworkforceknowstheorganizations
goals,understandsthem,and,mostimportant,canrelatethemto
Mercysmission:toprovideexceptionalhealthcareservicesthat
resultinhealinginthebroadestsense.Fortheinvolveprong,
Mercyformsapartnershipwithitsworkforce.Forexample,the
organizationadministersannualsatisfactionsurveystolearnwhat
ismostimportanttoemployees;conductsfocusgroupsondiversity,
wellness,andsafety;andinvolvestheworkforceindeveloping
actionplans.Aspartofcelebrate,programssuchastheCulture
ofExcellenceensurethatworkforcemembersachievepersonaland
organizationalsuccess.Todeterminethefactorsthataffectworkforce
engagementandsatisfaction,theCultureofExcellenceSteering
CommitteeandtheHumanResourcePlanningCommitteeanalyze
employeefeedbackandotherdata.Theorganizationcelebrates
people,ideas,andachievementswithrecognitiondinners,baskets
forchampions,andthePartnerIdeaProgram,whichhasrewarded
over$15,000incashprizestoworkforcememberswhosubmit
ideas.
AnotherBaldrigerolemodel,MEDRAD,Inc.,whichreceivedthe
BaldrigeAwardin2003andagainin2010,hasgreatlybenetted
fromengagingitsemployeesinorganizationalimprovement.
ParticipationinMEDRADsValueImprovementProgram,which
captures,measures,tracks,andrecognizesemployeesideasfor
improvement,hasincreased12-foldfrom50employeesin1999
tomorethan600in2009.Valuedeliveredfromtheprogramhas
increased from $23,000 per employee in 2005 to $45,000 in 2009,
dramaticallysurpassingIndustry WeekmagazinesBestPlant
benchmarklevelof$10,000peremployeeforsimilarimprovement
programs.
Category6
BoeingAirliftandTankerPrograms,a1998BaldrigeAwardwinner
nowknownasBoeingMobility,hasdemonstratedexcellence
indesigning,managing,andimprovingitsworkprocesses.Asa
subunitoftheBoeingCompany,withheadquartersinLongBeach,
California,themanufacturercreatedaseven-stepapproachto
dening,managing,stabilizing,andimprovingitsworkprocesses.
Thisprocess-basedmanagement,orPBM,helpedthecompany
continuallyimprovethedesign,development,andproductionof
theC-17Globemaster11airlifterforitsprimarycustomer,theU.S.
AirForce.ThecompanyalsousedPBMtosetmeasuresofquality,
timeliness,andcycletimewhichserveasindicatorsofefciency
andarethechiefdriversofcustomersatisfactionforthecompany.
MidwayUSA,asmallbusinesswith
twofacilitiesinColumbia,Missouri,
isanotherrolemodelinhowit
designs,manages,andimprovesits
workprocessestodelivervalueto
customers.TheInternetandcatalog
retailmerchantofshooting,reloading,
gunsmithing,andhuntingproducts
uses1,500documentedprocessesto
runthebusiness.Everyoneofthese
processesfocusesonakeystakeholder.
Thestrongfocusonoperationsdemonstrated
byDynMcDermottPetroleumOperations
Company(DM;nowDMPetroleumOperations
Company),whichreceivedtheBaldrigeAward
in2005,hasdeliveredvaluetoitscustomer,the
U.S.DepartmentofEnergy(DOE),andboosted
organizationalsuccessandsustainabilityin
partnershipwiththeDOE.DMdeterminesthe
requirementsforitskeyvaluecreationprocesses
(seegurebelow)incollaborationwithits
customer.IftheDOEsmissionrequirements,
orders,orstrategicplanchanges,DM
incorporatesthosechangesintoitsstrategicplan
andimplementsthemthroughrelatedaction
plans.Changesintheneedsofcustomers,
suppliers,andstakeholdersareincorporatedin
realtimethroughdailycommunicationsand
fromweekly,monthly,quarterly,andsix-month
reviews.Allprocessesincorporatecustomer
feedback,andmanyincorporatesupplierfeedback,suchasinputon
securityandemergencypreparedness.
DMsKeyValueCreationProcesses
Crude Oil Acquisition (Fill Process)
Drawdown Process
Vapor Pressure
Crude Oil Quality
Maintenance Process
Cavern Integrity
Emergency Preparedness Process
ISO 14001 Process (Environmental)
Category7
BoeingAirliftandTankerPrograms(nowknownasBoeingMobility)
achieved excellent results, including a 54 percent reduction over
veyearsintimespentonreworkandrepairoftheC-17.In
addition,themeantimebetweencorrectivemaintenanceprocedures
increasedeightfoldbetween1993and1997,andwhentheBoeing
subunitreceivedtheBaldrigeAwardin1998,theC-17slevelof
performancewasnearlyfourtimesbetterthanthatofthenext
bestcompetitorsaircraft.Boeingattributedtheseresultstoquality
improvementsandefcienciesachievedthroughitssystematic
methodologyformanagingitsmanufacturingandotherprocesses.
Ritz-CarltonHotelCompanysextraordinarycustomerfocushas
paidoffincustomersatisfactionandnancialgains.Inasurveyof
frequentleisuretravelers,Ritz-Carltonheldthetopscoreincomplete
satisfactionduringtheperiodleadinguptoitssecondBaldrige
Award. Its closest competitors score was 14 percentage points lower.
Thecompanysreturnoninvestmentincreased85percentoverthree
years.Revenueperavailableroomexceededtheindustryaverage
bymorethan300percentandtheupscalehotelgroupaverageby
morethan150percent.Inturn,itsgrossprotincreasedmorethan
12percentoverthreeyears.Ritz-Carltonalsomanagedtodecrease
employeeturnovernearly60percentoverthenineyearsleading
uptoits1999Baldrigerecognition.Itsturnoverratewasmorethan
Sharp HealthCares Patient Perception of Quality
20percentagepointslowerthantheindustryaverageatthetime.
At77percent,employeesatisfactiononallissuessurveyedwas23
percentagepointshigherthantheservicecompanynorm.
2007BaldrigeAwardwinnerSharpHealthCareledtheSanDiego
regioninconsumersperceptionofquality(seethegurebelow)as
aresultofeffortstolistentothevoiceofthecustomerandrespond
tothecommunitysrequirements.Inaddition,Sharpsfocuson
enhancingcustomerrelationshipsandloyaltyledtosustained
improvementinbothinpatientandoutpatientloyaltytoand
likelihoodofrecommendingSharp.Intheseareas,ratingsofSharp
eitherapproachedormetthe75thpercentileforhospitalstrackedby
PressGaney,asshowninthegureonthenextpage.
SharpHealthCaresPatientPerceptionofQuality
Has the best clinical quality
Is the best place to work
Has the best customer service
Has the best doctors
Has the best nurses
Is the best overall
Better
0% 5% 10% 15% 20% 25% 30%
Percentage of Respondents
Sharp 2003
Sharp 2006
Closest Competitor 2006
Sharp HealthCares Patient Loyalty and Likelihood to Recommend
SharpHealthCaresPatientLoyaltyandLikelihoodtoRecommend
P
e
r
c
e
n
t
a
g
e

S
c
o
r
e
Top-Quartile Performance
100
80
60
40
20
0
P
e
r
c
e
n
t
i
l
e
Better
Likely to RecommendInpatient Likely to RecommendOutpatient
FY5 FY4 FY1 FY3 FY2
Press Ganey 75th
For2005BaldrigeAwardwinnerDynMcDermottPetroleum
OperationsCompany(DM;nowDMPetroleumOperations
Company),themeasureofdrawdownreadiness(displayedinthe
gurebelow)showshoweffectiveprocessmanagementenables
theorganizationtomeetcustomerrequirements.DMsrstpriority
isoperationalreadinessbecause,intheeventofaninterruption
tothenationsoilsupplyandanorderfromthePresidentofthe
UnitedStates,theStrategicPetroleumReservemustdistribute
crudeoiltoreneries.Calleddrawdown,thisisDMsprimary
mission.Overthedecadepreceding2005,DMcontinually
improveditsOperationalReadinessSystem,astrategicplanningand
organizationaltooltoensureefcient,secure,andsafedrawdown
andll.DMsorganizationalapproachhasworkedwell;between
2001and2005,DMsdrawdownsystemwasavailable98percentof
thetimeormore.Ineachyearandateachsite,thesystemexceeded
theDOEsexpectations.
In2005,DMsresponsestoHurricanesKatrina
DMs Drawdown Readiness
andRitademonstratedthecompanyssystematic
approachestooperationalreadiness,emergency
100%
planning,andemergencyresponse.Although
bothhurricanesaffectedseveralcompanysites,
80%
displacingemployees,DMrestoredoiloperations,
processes,anddatacommunicationsystems
60%
withinvedays;inresponsetothePresidents
drawdownorder,DMdeliveredapproximately30
DM Total Readiness Status
DOE Drawdown Target = 95%
millionbarrelsofoilwithoutincident.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY
PatrickGallagher,DirectorandUnderSecretaryofCommerceforStandardsand
Technology
PhillipSingerman,AssociateDirectorforInnovationandIndustryServices
BALDRIGE PERFORMANCE EXCELLENCE PROGRAM
HarryS.Hertz,Director
JeffLucas,DeputyDirector
BOARD OF OVERSEERS FOR THE MALCOLM BALDRIGE
NATIONAL QUALITY AWARD
BryanBushick,ChiefHealthCareStrategyOfcer,Covisint
ThomasC.Dolan(Chair),PresidentandCEO,AmericanCollegeofHealthcare
Executives
DanielDomenech,ExecutiveDirector,AmericanAssociationofSchoolAdministrators
S.ThomasFoster,Jr.,Professor,GlobalSupplyChainManagement,BrighamYoung
University
GrandeLum,U.S.SmallBusinessAdministration,Director,HUBZoneProgram
WilliamMcBee,III,VicePresident,TCEandQuality,Hewlett-Packard
StephenPerry,PresidentandExecutiveDirector,ProFootballHallofFame
KathrynRawls,TennesseeCenterforPerformanceExcellence
BarryK.Rogstad,FormerPresident,AmericanBusinessConference;BoardChair,
SuburbanHospital
MaxSummers,StateDirector,MissouriSmallBusinessDevelopmentCenters
MargaretTownsend,QBEConsulting,L.L.C.
FOUNDATION FOR THE MALCOLM BALDRIGE NATIONAL
QUALITY AWARD
DebbieJ.Collard(Chair),Director,StrategyIntegration,TheBoeingCompany
P.GeorgeBenson,Ph.D.(Chair-elect),President,CollegeofCharleston
WilliamPetasnick(secretary),PresidentandCEO,FroedtertandCommunityHealth
LetitiaBaldrige,LetitiaBaldrigeEnterprises
AnneBryant,Ph.D.,ExecutiveDirector,NationalSchoolBoardsAssociation
FrankFusco,ExecutiveDirector,SouthCarolinaBudgetandControlBoard
G.RichardHastings,PresidentandCEO,SaintLukesHealthSystem
WrightLassiter,Jr.,Ph.D.,Chancellor,DallasCountyCommunityCollegeDistrict
MichaelMurphy,PresidentandCEO,SharpHealthCare
SusanSarfati,CAE,President/CEO,HighPerformanceStrategies
HorstSchulze,PresidentandCEO,TheWestPacesHotelGroup
E.DavidSpong,Ph.D.,President(Retired),BoeingAerospaceSupport
W.PaulWorstell,President/CEO(Retired),PRO-TECCoatingCompany
Baldrige Performance Excellence Program
NationalInstituteofStandardsandTechnology
UnitedStatesDepartmentofCommerce
Web Site: http://www.nist.gov/baldrige
B
ecausetheCriteriaarefocusedonwhatbest-in-classcompaniesdoandareever-
evolving,measuringourselvesagainstthemandapplyingfortheAwardhashelped
CGISSstrivetobethebestwecanbe.TheCriteriaprovideaconsistentframeworkto
ensurewecreateandbalancebothshort-andlong-termvalueforourstakeholders.
MartinSwarbrick,VicePresidentandDirector,OfceofBusinessExcellence,
MotorolaCGISS
T
hebiggestchallengeanyorganizationhastodayissustaininghighperformanceand
IreallybelievetheBaldrigemodelfocusesattentiononallaspectsofthebusiness
andforcesyoutocontinuallyre-assessandre-evaluateeverythingthatyouredoing.
KenSchnitzer,Chairman,ParkPlaceLexus
I
fIwereinchargeoftheworld,allorganizationsinAmericawouldadopttheBaldrige
CriteriaandpursuetheMalcolmBaldrigeNationalQualityAward.IfAmericaisto
competeintheworld,itsgottoimproveitsperformance,andtheBaldrigeCriteriais
thetooltodoexactlythat.
LarryPottereld,CEO,MidwayUSA
W
efeltthattheBaldrigeprocesswasbesttomeetourmissionstatement,andour
missionisthatallstudentscanandwilllearn.Wepassionatelybelievethatand
welookedforamodelthatwouldgetustothatlevelofachievementandtheBaldrige
processworksforus.
RichardE.Maurer,SuperintendentofSchools,PearlRiverSchoolDistrict
I
thinkthatBaldrige,especiallyinhealthcare,isextremelyimportant.Baldrigeisa
commitmenttoexcellencethatneverends....Wewanttolearneveryday,wewant
tobebettereveryday,andBaldrigegaveustheframework...topursuethatjourneyof
excellence.
MarkLaney,PresidentandCEO,HeartlandHealth
T
heveteranisthebenefactorofwhatweprovideforourclinicaltrials,andIthink
thattheBaldrigeProgramactuallyenabledustotransformtheorganizationfrom
beinggoodtoagreatorganization,onethatisveryhighperforming.
MikeSather,Director,VeteransAffairsCooperativeStudiesProgramClinical
ResearchPharmacyCoordinatingCenter
ToorderacopyofBaldrige20/20:AnExecutivesGuide
totheCriteriaforPerformanceExcellence,
contacttheAmericanSocietyforQuality(ASQ):
600NorthPlankintonAvenue
Milwaukee,WI53203
Telephone:(800)248-1946;Fax:(414)272-1734;
E-Mail:asq@asq.org;WebSite:http://www.asq.org
T1537

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