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Malcolm Baldrige

National Quality
Award

How We Got Here

National conference on Productivity,


1982
7 conferences leading up to White
House Conference on Productivity
August 20, 1987 Award created
Stimulate companies to improve quality
and productivity
Recognize success to be example to
others
Guidelines for companies to assess
progress

Malcolm
Baldrige

1981-87 secty. of Commerce.


Proponent of quality management as
key to US economic survival
Helped draft early version of quality act
Resolved technology transfer
differences with China and India
First Cabinet-level meetings with Soviet
Union in 7 years

Paved way for increased access for US firms

Each category has several items (18


total), and each item has several
areas to address

Point
Values

ADLI = Approach, Deployment, Learning, Integration

How to Get Started

Questionnaires (10 minutes)


Are we making progress?
Are we making progress as leaders?
40 questions

Online Assessment

Easy Insight Online assessment


How much information do you have?
How much have you thought about
strategy and operations and your
customer?
Help you figure out where to start
digging

Self-Analysis

Categories

Manufacturing
Service
Small Business
Education (added 1999)
Health Care (added 1999)
Nonprofit (2005)

Application
Process

Questionnaires for
company and
management
Online assessment

Application process

Self-Assessment, Application turned in


Consensus Review: Initial screen by
independent Board of Examiners (8)
Site Visit Review by teams of examiners

Verify information, get questions answered


Written summary of strengths, areas for
improvement

300 volunteer examiners


U.S.-Based companies only
Winners agree to spread the word about
quality

Preparing the
Application

Organizational profile describes org.


and challenges

Category teams: info & data on area

Maybe need more information,


identified problems, work on those first
Action plan for improvement

Senior leaders, champions, teams


evaluate how to improve process for
future

10-step Process
1.
2.
3.

4.

Boundaries of org. to be assessed


Champions for each area
Decide format & scope for selfassessment
Senior leaders, champions prepare Org.
Profile

Organizational profile describes org. and


challenges & environment
Common understanding of what is important
System for improvement, strategic
challenges
Go directly to 9 develop & implement
improvement plan

10-step process
Practice self-assessment with
champions

5.

Use Item 1.1 Criteria for Performance


Excellence
See if meeting goals, on track

6.

Champions select category teams

3-5 enthusiastic team members,


different levels
Maybe outside organization being
studied
Read the criteria, gather data, write
an analysis

10-step process
Share findings among teams, stengths &
weaknesses
Prioritize key strengths and areas to
improve
Develop and implement action plan for
improvement

7.

8.

9.

10.

Who will lead each step, what is to be


accomplished, progress dates, how progress
will be measured

Evaluate and improve your selfassessment and action process

Leadership

Examines how senior executives


guide the company and how the
company addresses its
responsibilities to the public and
practices good citizenship.
1.1 Organizational Leadership
1.2 Social Responsibility

Strategic planning

Examines how the company sets


strategic directions and how it
determines key action plans.
2.1Strategy Development
2.2 Strategy Deployment

Customer and market


focus

Examines how the company


determines requirements and
expectations of customers and
markets.
3.1Customer and Market Knowledge
3.2 Customer Relationships and
Satisfaction

Information and analysis

Examines the management, effective


use, and analysis of data and
information to support key company
processes and the companys
performance management system.
4.1Measurement and Analysis of
Organizational Performance
4.2 Information and Knowledge
Management

Human resource focus

Examines how the company enables


its workforce to develop its full
potential and how the workforce is
aligned with the companys
objectives.
5.1 Work Systems
5.2 Employee Learning and
Motivation
5.3 Employee Well-Being and
Satisfaction

Process management

Examines aspects of how key


production/delivery and support
processes are designed, managed,
and improved.
6.1V alue Creation Processes
6.2 Support Processes

Business results

Examines the companys performance and


improvement in its key business areas:

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.

better market performance, gains in market


share, and customer retention and satisfaction

The Trophy

Is Baldrige a U.S. version of


Japans Deming award?

The basic purposes of both awards are the


same:

to promote recognition of quality


achievements and
to raise awareness of the importance and
techniques of quality improvement.

However, the Baldrige Award:

focuses more on results and service,


relies upon the involvement of many different
professional and trade groups,
provides special credits for innovative
approaches to quality,
includes a strong customer and human
resource focus, and
stresses the importance of sharing

Baldrige vs. ISO 9000

Purpose of MBNQA to enhance US


competitivenes
Promotes quality awareness,
recognizes achievements of US
companies
Vehicle for sharing success
strategies
ISO covers less thatn 10 percent of
the Baldrige award criteria
Many apply, few are selected
MBNQA not required for business

Six Sigma, ISO, BNQA

Six Sigma

ISO 9001:2000 Registration

concentrates on measuring product quality and


improving process engineering.
drives process improvement and cost savings.
is a product/service conformity model for guaranteeing
equity in the marketplace.
concentrates on fixing quality system defects and
product/service nonconformities.

Baldrige Criteria for Performance


Excellence

focus on performance excellence for the entire


organization in an overall management framework.
identify and track all-important organizational results:
customer, product/service, financial, human resource,
and organizational effectiveness.

EFQM Model

Who is using the


More than 20,000 organisations across
Model?

Europe
60% of Europes largest 25 companies
9 of the 15 European companies & 50
Worlds Most Respected Companies in
2002
More than 10,000 SMEs
20 out of the 50 Euro stock companies

The EFQM Excellence Model is a registered trademark of EFQM

The Benefits

Who is using the


More than 18 different Excellence-related
Model?
Awards

European Quality Award


Austrian Quality Award
Belgian Quality Award
Danish Quality Award
Irish Business Excellence Awards
Finnish Quality Award
French Quality Award
Ludwig Erhard Award
Italian Quality Award
INK Prize (based on Model)
Northern Ireland Quality Award
Norwegian Quality Award
The EFQM Excellence Model is a registered trademark of
EFQM
Excellence Award, Portugal
Scottish Award for Business Excellence
Swedish Quality Award
Swiss Quality Award for Business Excellence
UK Business Excellence Award
National Quality Award Turkey

The Benefits