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 Maybe need more information,

identified problems, work on those first Category teams: info & data on area

Action plan for improvement Senior leaders, champions, teams

evaluate how to improve process for future

10-step Process1. Boundaries of org. to be assessed2. Champions for each area3. Decide format & scope for self-

assessment4. 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

5. Practice self-assessment with champions

Use Item 1.1 Criteria for Performance Excellence

See if meeting goals, on track6. Champions select category teams

3-5 enthusiastic team members, different levels

Maybe outside organization being studied

Read the criteria, gather data, write an analysis

Explain how approaches used throughout org.

10-step process

7. Share findings among teams, stengths & weaknesses

8. Prioritize key strengths and areas to improve

9. Develop and implement action plan for improvement

Who will lead each step, what is to be accomplished, progress dates, how progress will be measured

10. Evaluate and improve your self-assessment 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 company’s 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 company’s 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 company’s 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 Japan’s 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

information.

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

concentrates on measuring product quality and improving process engineering.

drives process improvement and cost savings. ISO 9001:2000 Registration

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 Model? More than 20,000 organisations across

Europe 60% of Europe’s largest 25 companies 9 of the 15 European companies & 50

World’s Most Respected Companies in 2002

More than 10,000 SMEs 20 out of the 50 Euro stock companies

The Benefits The EFQM Excellence Model is a registered trademark of EFQM

Who is using the Model? More than 18 different Excellence-related

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 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 Wales Quality Award

The Benefits

The EFQM Excellence Model is a registered trademark of EFQM