Malcolm Baldrige National Quality Award

By FESanchez

The Malcolm Baldrige Award was established in 1987 with the signing of the
Malcolm Baldrige National Quality Improvement Act of 1987 by President Reagan. The
purpose for establishing this award was to promote quality awareness and innovation and
to publicize these successful strategies to U.S. companies. This improvement in quality
became apparent when during the early and mid-1980's, industry and government leaders
were seeing American companies make quality performance a necessity for their
businesses in the expanding and ever competitive world market. Yet many American
companies did not know much about quality, hence, many did not implement quality or
didn't know where to begin in implementing quality control. For this reason the Baldrige
Award was created so that a standard of excellence in quality would exist in order to help
U. S. companies achieve world class status. The award recognizes U.S. companies for
their achievements in quality and business performance.
The award was named after Malcolm Baldrige who was Secretary of Commerce
from 1981 until his tragic death in a rodeo accident in 1987. Baldrige was a proponent of
quality management and believed it was the key to the U. S.' s prosperity and long-term
strength in business. He was a leader in business and management and spent much time
and interest in helping to write and establish the quality improvement act which was
eventually named after him.
Two awards may be given annually in each of the following categories:
1. manufacturing companies or subsidiaries
2. service companies or subsidiaries
3. small businesses
Fewer than two awards may be given in a category if the high standards of the
Award Program are not met.

Eligibility
Any for-profit business headquartered in the U.S. or its territories may apply for
the award, including U. S. subunits of foreign companies. Small businesses must be
independently owned with not more than 500 full-time employees.

Award Criteria
There are seven categories that make up the Baldrige criteria. These criteria are
the basis for choosing the award recipients and were designed to enhance
competitiveness. More importantly these criteria provide a framework for which an
organization can use to improve overall performance. The criteria are the following:
1. Leadership - Examines how senior executives guide the company, how the
company addresses its responsibilities to the public and how the
company practices good citizenship.
2. Strategic Planning - Examines how the company sets strategic directions and
how it determines key action plans.
3. Customer and Market focus - Examines how the company determines
requirements and expectations of customers and markets.
4. Information and Analysis - Examines the management, effective use, and
 analysis of data and information to support key company
processes and the company's performance management system.
5. Human Resource Development and Management - Examines how the company
enables its workforce to develop its full potential and how the
workforce is aligned with the company's objectives.
6. Process Management - Examines aspects of how key production, delivery, and
support processes are designed, managed, and improved.
7. Business Results - Examines the company's performance and improvement in
the key business areas of customer satisfaction, financial and
marketplace performance, human resources, supplier and partner
performance, and operational performance. The category also
examines how the company performs relative to competitors.

Examination Process
Each participant fills out and submits an application where members of the Board
of Examiners evaluate it. The Board of Examiners is comprised of more than 300 quality
experts selected from industry, professional and trade organizations, universities,
government agencies, education and healthcare, organizations, and from the ranks of the
retired. Examiners look for achievements and improvements in all seven categories. High
scoring applicants are selected for site visits by a Panel of Judges. The Judges verify
information in the application and clarify questions during the review. The Judges
recommend Award recipients to the Secretary of Commerce from among the applicants’
site visited. Each applicant receives a written feedback summary of strengths and areas
for improvement in each area addressed by the criteria.

Unlike most award programs, the participants don't necessarily apply for the
rewards or recognition but quite often for a thorough evaluation of their company. The
application and review process is quoted as being the best and most cost effective and
comprehensive business health audit any company can get. Thousands of organizations
now are using the Baldrige Award performance excellence criteria to assess their
company and to improve.
Not only can companies get audited at a bargain price but also receive information
from the winners' quality programs that they can use for their own needs. Sharing and
presenting the successful quality programs is a major part of the award even though the
requirements are minimal.
Federal funding for this program is about $3 million annually. Application fees
are charged to cover expenses associated with distribution and review of applications and
development of feedback reports. For large businesses the fee is $4,500 and for small
firms the fee is $1,500. Companies receive at least 300 hours of review by a minimum of
eight business and quality experts. Site-visited companies receive over 1,000 hours of in-
depth review.

For more information about the Malcolm Baldrige National Quality Award refer to the
following websites:
http://www.quality.org
http;//www.quality.hist.gov