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Baldrige National Quality Program 2005 Baldrige National Quality Program Be the Best Leader, Lead the Best Organization: How Baldrige Can Help You Harry S. Hertz NCHE Meeting January 11, 2005

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Baldrige National Quality Program 2005Baldrige National Quality Program

Be the Best Leader, Lead the Best Organization: How

Baldrige Can Help You

Harry S. Hertz

NCHE Meeting

January 11, 2005

Baldrige National Quality Program 2005

Outline

Where Are We As Leaders?

What Are the Baldrige Criteria? How Do We Improve?

- Are We Making Progress?- Organizational Profile- Learn from Others

Tomorrow Morning

Baldrige National Quality Program 2005

Where Are We As Leaders?Committee of 200 Study – October 2004

933 Graduate Students and 807 MBA Graduates Companies are not run honestly

– 67% of female students– 57% of male students

Lack of ethics still is a serious issue– 70% of female graduates– 60% of male graduates

Business is not done ethically or honestly– 64% of graduates with jobs– 61% of students

Baldrige National Quality Program 2005

Where Are We As Leaders?

What’s the message……

Baldrige National Quality Program 2005

Where Are We as Leaders?

I believe the answer is enlightened organizational and labor leadership leading, with vision and conviction.

Baldrige National Quality Program 2005

What Are the Baldrige Criteria?

Performance ExcellenceAn integrated approach to organizational performance management that results in:• delivering ever-increasing value to

patients and other customers, contributing to improved health care quality

• improving organizational effectiveness and capabilities as a health care provider

• organizational and personal learning

Baldrige National Quality Program 2005

What Are the Baldrige Criteria for Performance Excellence?

A set of expectations or requirements

A structured approach to performance improvement

A framework for a systems view of performance management

Baldrige National Quality Program 2005

Criteria Purposes

To help improve organizational performance practices, capabilities, and results

To facilitate communication and sharing of best practices

To serve as a performance improvement tool

Baldrige National Quality Program 2005

Baldrige National Quality Program 2005

Baldrige National Quality Program 2005

How Do We Improve?

Are We Making Progress?

Are We Making Progress as Leaders? Employee (Leadership Team)

Questionnaires Seven Category Framework 40 Statements, 5-Point Scale Compare Results Focus Improvement and Communication

for Your Organization Measure Trust

Baldrige National Quality Program 2005

1a) I know my organization’smission.

StronglyDisagree

%

0

Disagree%

3

NeitherA/D%

3

Agree%

32

StronglyAgree

%

62

1b) My senior leaders use ourorganization’s values to guide us. 5 11 17 39 291g) My organization asks what Ithink. 6 12 22 41 192a) As it plans for the future, myorganization asks for my ideas. 8 20 20 36 187a) My customers are satisfied withmy work. 0 2 17 61 207e) My organization removes thingsthat get in the way of progress. 7 27 31 29 77f) My organization obeys laws &regulations. 0 2 4 31 647i) I am satisfied with my job. 3 8 21 37 31

Are We Making Progress?N=228

Baldrige National Quality Program 2005

Baldrige Examiner Results - Differences Greater than 20%

% Employees % Leaders

2b. Employees know plans that effect them

68 42

3d. Employees ask if customers satisfied 74 45

4a. Employees know how to measure work quality

80 48

4b. Employees know how to analyze work quality

80 32

4c. Employees use analyses to make decisions

74 24

4d. Employees relate their measures and business results

62 35

5a. Employees can make work improvements

83 61

6b. Employees collect data on work quality

69 38

7d. Employees time and talent used well 57 37

Baldrige National Quality Program 2005

% Employees % Leaders

3c. Customers tell employees their needs

77 75

4f. Employees know how organization is doing

57 55

5b. Employees work as a team 74 76

5e. Safe workplace 89 88

7e. Organization removes barriers 36 35

7f. Organization obeys laws 95 95

7g. Organization has high standards 82 83

7h. Employees are satisfied with job 68 67

Baldrige Examiner Results Similar Perceptions

Baldrige National Quality Program 2005

How Do We Improve?“Are We Making Progress?” Discussion

Points Ask your employees for their ideas for

the future Ask your employees about

organizational barriers to progress Ask your employees how they analyze

work quality and make decisions Ask about the differences in leadership

and employee perceptions

Baldrige National Quality Program 2005

How Do We Improve?

Organizational Profile Purpose:

- Describe what is relevant and important- Ensure common understanding - Guide selection of information/data- Identify gaps/lack of deployment- Serve as first Baldrige assessment

Baldrige National Quality Program 2005

Organizational Profile

Organizational Description– Organizational Environment– Organizational Relationships

Organizational Challenges – Competitive Environment – Strategic Challenges– Performance Improvement System

Baldrige National Quality Program 2005

Organizational ProfileRelationships

Organizational structure and governance system

Key patient/customer groups or market segments and their key requirements

Most important suppliers/dealers/partners and supply chain requirements

Key supplier and customer partnering relationships and communication mechanisms

Baldrige National Quality Program 2005

Baldrige National Quality Program 2005

How Do We Improve?

“Organizational Profile” Discussion Points

Do you know the answer? Would your organizational colleagues

give the same answer? Who are your key customers and what

are their requirements? What are your strategic challenges?

Baldrige National Quality Program 2005

How Do We Improve?

…What are management and employees measuring?

Customer RequirementsDeck Furniture

Baldrige National Quality Program 2005

1999 & 2000 Award Process Mean Item Percentage Scores: All Business Categories (Stage 1 and

Award Recipients)

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

1.1 1.2 2.1 2.2 3.1 3.2 4.1 4.2 5.1 5.2 5.3 6.1 6.2 6.3 7.1 7.2 7.3 7.4 7.5

Item

Mea

n P

erce

nta

ge

Sco

res

Award Recipients

Stage 1

Baldrige National Quality Program 2005

Baldrige Role Model Characteristics -

Business (2001 & 2002), Business (1999 & 2000), Education (2001)

Visionary Leadership Guidance (1.1) Process Driven (6.1) Customer and Market Knowledge (3.1)

Baldrige National Quality Program 2005

Early Adopters -Business (2001 & 2002), Business (1999 & 2000), Education (2001

& 2002)

Process Driven (6.1) High Performance Work Systems (5.1) Customer and Market Knowledge (3.1) Visionary Leadership Guidance (1.1)

Baldrige National Quality Program 2005

How Do We Improve?

“Lessons Learned” Discussion Points What are your organization’s values?

How do you demonstrate them? How do you motivate employees? What are your key processes? How do you listen and learn from

customers? How do you align work, jobs, and

processes?

Baldrige National Quality Program 2005

SSM Top 10 Lessons Learned from Using Baldrige

10.Don’t wait until you are “ready.”

9.It takes longer then you think.

8.Everyone must be involved and understand what’s important.- CEO, medical staff, support staff...

Baldrige National Quality Program 2005

SSM (continued)

7.It’s important not just to understand the Baldrige health care criteria, but also to understand the connections among the criteria.

- A systems perspective

6. In well-run organizations, everything is intentional.

5. Never confuse activity with accomplishment

- Measure results and outcomes,

not activity

Baldrige National Quality Program 2005

SSM (continued)

4. You don’t know what you don’t know until someone tells you.

3. So, you say you want to be exceptional…- “Through our exceptional health

care services, we reveal the healing presence of God.” SSM mission

2. If you’re in this to win, don’t bother.

Baldrige National Quality Program 2005

SSM (continued)

1. Leadership is not seeing which way the parade is moving and running to the front.- “Leadership is getting people from

where they are to where they have not been.” Henry Kissinger

Baldrige National Quality Program 2005

Tomorrow Morning

Consider Using Are We Making Progress?, Organizational Profile, Lessons Learned, Baldrige Criteria- But choose among them

Consider the Discussion Points- Stimulate a discussion- Do some data gathering- But choose your focus

Baldrige National Quality Program 2005

Tomorrow Morning

“The task of the leader is to get people from where they are to where they have not been.”

Henry Kissinger

You can be that leader

Baldrige National Quality Program 2005

Thank You!