2012

2011

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Origins of Business Excellence

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

What Is the Malcolm Baldrige National

Quality Award?
Program established in August 1987
by the Congress of the United States
The first clearly defined and internationally
recognized TQM model
Award is given annually to companies
in the manufacturing, small business, service,
education, health care, and not-for-profit business
Baldrige Performance Excellence Program | www.nist.gov/baldrige
 2012

Who is Malcolm Baldrige?

Secretary of Commerce of the United States from 1981
to 1987
He was a very big proponent of
quality management at a time when
quality was not a large issue
He helped draft one of the early
versions of the Quality Improvement Act
In recognition of his contributions in showing
the importance of quality, the MBNQA was named after
him.

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Reasons for the Establishment of the

Malcolm Baldrige National Quality
Award

U.S. government officials saw that
quality improvement was no longer
an option for American business, but a necessity
Many businesses did not think quality
was an important issue
Others knew that it was important, but did not
know where to begin the improvement process

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

How an Organization Is Chosen As a

MBNQA Winner
55% of evaluation is based on how the
organization is run (leadership, planning,
controls and processes)

45% on the basis of performance (Financial
records, customer satisfaction, product and
service quality, supplier performance and
productivity)

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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The
MBNQA
Framework
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ATTRIBUTES, BELIEFS AND/OR BEHAVIORS

THAT BUSINESS EXCELLENT ORGANIZATIONS
EXHIBIT -
Visionary leadership
Customer-driven excellence
Organizational and personal learning
Valuing employees and partners 11
Agility Core Values
Focus on the future and
Managing for innovation Concepts
Management by fact of MBCfPE
Societal responsibility
Focus on results and creating value
Systems perspectives

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

The Core Values and Concepts are

embodied in 7 Criteria for Performance
Excellence
1. Leadership
2. Strategic Planning
3. Customer Focus
4. Measurement, Analysis, and Knowledge
Management
5. Workforce Focus
6. Operations Focus
7. Business Results
Baldrige Performance Excellence Program | www.nist.gov/baldrige
 2012

MBCfPE FRAMEWORK: A Systems Perspective

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Key
Excellence
Indicators
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Key Excellence Indicators:

Leadership (1 of 3)
Senior leaders
communicate and demonstrate clear direction
and values
inspire the highest standards of legal and
ethical behavior
model and encourage learning, innovation,
excellence, and a focus on the future
drive strategies for performance excellence
and sustainability

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Leadership (2 of 3)
The governance body
is informed, transparent, and accountable
takes responsibility for ethics, actions, and
performance
The organization
surpasses legal and regulatory compliance
stresses ethical behavior
strengthens environmental, social, and
economic systems
Baldrige Performance Excellence Program | www.nist.gov/baldrige
 2012

Key Excellence Indicators: Leadership

Criteria in a Nutshell (3 of 3)
Examines how senior executives guide the company
and how the company addresses its responsibilities to
the public and practices good citizenship

Organizational Leadership
Social Responsibility

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Strategic Planning (1 of 3)
Strategy development
aims for sustained leadership
balances short- and long-term factors
anticipates the future environment
incorporates innovation, stakeholders needs,
challenges, and advantages
aligns work systems and learning with
strategic directions
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Key Excellence Indicators:

Strategic Planning (2 of 3)
Develops aligned, consistent action plans
Deploys action plans to the workforce, key
suppliers, and partners
Tracks the accomplishment of action plans
Develops human resource and financial plans
Uses performance projections and comparisons

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Strategic Planning Criteria in a
Nutshell (3 of 3)
Examines how the company sets strategic directions
and how it determines key action plans.

Strategy Development
Strategy Deployment

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Customer Focus (1 of 3)

Proactively captures the voice of the customer

Gathers information on customer desires and
marketplace potential
Listens to current, former, and potential
customers
Collects actionable information on
engagement, satisfaction, and dissatisfaction

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Customer Focus (2 of 3)
Innovates product offerings and services to
exceed expectations
Refines and innovates support and
communication
Builds trust, confidence, and loyalty
Resolves complaints promptly and eliminates
the causes

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Customer Focus Criteria in a
Nutshell (3 of 3)
Examines how the company determines requirements
and expectations of customers and markets.

Customer and Market Knowledge

Customer Relationships and Satisfaction

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Measurement, Analysis, and
Knowledge Management (1 of 3)
Creates a balanced composite of measures tied
to needs, strategy, and goals
Collects and uses data to determine trends,
projections, and cause and effect
Uses performance analyses in decision making,
improvement, and innovation

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Measurement, Analysis, and
Knowledge Management (2 of 3)
Maintains and safeguards information systems
Shares and transfers critical knowledge
Provides knowledge needed for work,
improvement, and innovation
Leverages knowledge of workforce, customers,
suppliers, collaborators, and partners
Captures and shares knowledge to drive
innovation
Baldrige Performance Excellence Program | www.nist.gov/baldrige
 2012

Key Excellence Indicators:

Measurement, Analysis, and
Knowledge Management Criteria
in a Nutshell (3 of 3)
Examines the management, effective use, and analysis
of data and information to support key company
processes and the companys performance
management system.

Measurement and Analysis of Organizational
Performance
Information and Knowledge Management

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Workforce Focus (1 of 3)
Optimizes capability and capacity
Organizes and manages the workforce to serve
customers and achieve strategy
Designs proactive processes and policies to
ensure safety and security
Offers practices and policies tailored to workforce
members needs

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Workforce Focus (2 of 3)
Engages the workforce through meaningful
work, clear direction, and accountability
Ensures a trusting, effective, and cooperative
environment
Supports, recognizes, and rewards high
performance
Optimizes workforce and leader development

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Workforce Focus Criteria in a
Nutshell (3 of 3)
Examines how the company enables its workforce to
develop its full potential and how the workforce is
aligned with the companys objectives.

Work Systems

Employee Learning and Motivation

Employee Well-Being and Satisfaction

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Operations Focus (1 of 3)
Designs and innovates work systems to
capitalize on core competencies
Designs agile work systems
Optimizes work systems to deliver value for
customers
Establishes a comprehensive emergency
preparedness system

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Operations Focus (2 of 3)
Designs and innovates work processes to meet
requirements
Designs work processes for agility, excellence,
efficiency, and effectiveness
Manages, measures, and improves work
processes
Manages the supply chain to improve suppliers
and partners performance

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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Key Excellence Indicators:

Operations Focus Criteria in a
Nutshell (3 of 3)
Examines aspects of how key production/delivery and
support processes are designed, managed, and
improved.

Value Creation Processes

Support Processes

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Results (1 of 3)

Performance levels are excellent in areas that

are important to accomplishing the mission.
Results reflect offerings with superior value as
viewed by customers and the marketplace.

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Results (2 of 3)
Operational, workforce, legal, ethical, societal,
and financial indicators reflect superior
performance.
Results serve as measures of progress for
evaluating and improving performance in
alignment with strategy.

Baldrige Performance Excellence Program | www.nist.gov/baldrige

 2012

Key Excellence Indicators:

Business Results Criteria in a
Nutshell (3 of 3)
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

Baldrige Performance Excellence Program | www.nist.gov/baldrige

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2011

Baldrige Performance Excellence Program | www.nist.gov/baldrige