The Colorado Performance
Excellence (CPEx) Award Program
Creating a Culture of Excellence
Pervasive Throughout Colorado
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In today’s highly competitive
global environment …
Is it possible to …
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Increase market share
in a
tight market?
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YES!
In the stagnant food manufacturing
industry, The Bama Companies, Inc.
 Increased sales 72% from 1999 to 2004
 Increased total revenue from $123
million to $211 million
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YES!
Since 2000, MESA Products, Inc.
 Increased sales 93%, growing total
revenues from $14M to $27M in 2006
 Improved return on equity from –5% in
1999 to > 25% in 2005, exceeding
industry competitors by 20%
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Yes!
PRO-TEC Coating Company
 Has been continuously profitable for 12
years in an industry that has been
undergoing widespread bankruptcies
and consolidations.
Has doubled profits over the past five
years!
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YES!
RWJ Hamilton Hospital’s occupancy rate
grew from 70% to 90%
– More than 25 percentage points
higher than its nearest competitor!
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Have totally satisfied
customers?
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YES!
The Bama Companies, Inc. has
increased customer satisfaction
 from 75% in 2001
 to 100% in 2004
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YES!
From 2001 to 2005
Sunny Fresh Foods maintained
nearly 100% customer satisfaction
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YES!
Park Place Lexus’
Customer Satisfaction Index
for new cars is
nearly 100% for both its locations
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In today’s highly competitive
global environment …
Is it possible to …
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Have highly satisfied
employees?
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YES!
In 2005 employee satisfaction at
DynMcDermott Petroleum Operations
was 83%
vs.
the industry benchmark of 43%
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YES!
For 3 years in a row (2004, 2005 & 2006)
Bronson Methodist Hospital
Has been named one of Fortune Magazine’s
“100 Best Companies to Work For”
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YES!
In 2005
At Jenks Public Schools
staff enthusiasm for work
has increased to 4.62
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Why Are These Organizations
Outperforming?
 They view their organizations as an
integrated holistic system
 They recognize that high-performance comes
from all the parts of the system working
effectively together
 They use the Criteria for Performance
Excellence as a framework to assess and
improve their system
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What is Performance
Excellence?
An integrated
performance management approach
based on continuous improvement
that leads to
outstanding organizational results
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WHY IS IT IMPORTANT?
 Global Environment
 Competitive Advantage
 Demonstrated Results
 Why Not???
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Where is your organization on the
Performance Excellence Continuum?
Ad Hoc Management Approach
High Performance Management System
 Do your leaders set clear a direction that is aligned
with the vision, mission, and values and is cascaded
throughout the organization with measurable goals?
 Does your organization factually understand
customers—their needs, expectations, and
preferences?
 Do people in your organization have the
information they need to make good decisions?
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Continuous Improvement,
It’s All Relative!
 Excellence Model is based on “continuous
improvement”
 Even the best try to continuously improve
 Departure point is irrelevant
– Low to high
– High to World Class
 Staying in place is not an option
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The Excellence Model
What is it & Where did it come from?
 Malcolm Baldrige National Quality Award
 Enactment of Congress 1987
 Setting the new standard of “Excellence”
 Expansive use for award programs and
road-mapping for improvement
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Demonstrated, Sound Management
Framework
Baldrige-Based Model – a Systems Perspective
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS, AND
CHALLENGES
5
2
Strategic
Planning
Human
Resource
Focus
7
Organizational
Results
1
Leadership
3
Customer &
Market Focus
6
Process
Management
4
Measurement, Analysis, and Knowledge Management
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Endorsed by Presidents
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President Ronald Reagan –
“The Malcolm Baldrige National Quality Award offers
companies a standard with which to compare their
own progress to that of the country’s very best.”
President Bill Clinton –
“Every year I feel more strongly that this is the way
America ought to work. This is the way all of our
organizations ought to work.”
President George W. Bush –
“These organizations have been selected as
exemplifying the qualities of excellence and ethics.
They are being recognized for their continual
improvement, their commitment to employees and
community, and their enterprising spirit.”
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HENDRICKS AND SINGHAL STUDY
100%
91%
90%
79%
Percentage Change
80%
Award Winners
Control Firms
69%
70%
60%
50%
43%
40%
37%
32%
30%
23%
20%
7%
10%
9%
8%
6%
0%
0%
Operating
Income
Sales
Total
Assets
Employees
Return on
Sales
Return on
Assets
Performance Measures
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The Excellence Model, A Few
Big Picture Thoughts
 A flexible systems approach
 Non-prescriptive - not an “aspirin for all
ailments”
 Validated management practices
 A set of “How do you” questions
– What is your approach
– How is it deployed
– How is it continuously improved
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CPEx Award Program
Creating a Culture of Excellence
Pervasive Throughout Colorado
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About the CPEx Program
 State-wide
 Enhances and recognizes organizational
performance excellence
 Creates communities of performance
excellence practice
 Private, non-profit 501(c)(3) corporation
 Based on the Baldrige National Quality
Program Criteria for Performance Excellence
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Who we are
Vision – The CPEx community creates a culture
of excellence that is pervasive throughout Colorado.
Mission – We serve the people of Colorado by
cultivating performance excellence that generates
outstanding results. We fulfill this promise through:
training and education,
assessment and feedback,
recognition and awards,
networking, and
the sharing of best practices.
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What we do
 Recognize Colorado organizations that
have a role model organizational
management system
 Raise awareness about the importance
of quality and performance excellence
as a competitive edge
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Core Values of Your State
Program
 Visionary Leadership
 Customer Driven
 Organizational and
Personal
 Learning
 Valuing Employees
and
 Partners
 Agility
 Focus on the Future
 Managing for
Innovation
 Management by Fact
 Public Responsibility
and
 Citizenship
 Focus on Results and
 Creating Value
 Systems Perspective
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CPEx Assessment and Award
Program
 Open to all organizations
 Annual Awards Cycle:
–
–
–
–
–
–
–
Training: Anytime!!
Letter of Intent: March
Written Application to CPEx/Baldrige: May
Application Review & Consensus: May-July
Site Visit July: Sept
Feedback Report: Oct
Quest for Excellence Conference/Award
Ceremony: Oct - Nov
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CPEx Award Levels
 High Plains (Organizational Profile)
– Organizations in the initial stage of self-assessment
– A snapshot of the organization that includes key influences
and challenges
 Foothills (Approach)
– How the Category and Item requirements are addressed,
i.e. the methods used
 Timberline (Deployment)
– The extent to which the approach is applied
 Peak (Results)
– Results refer to outcomes
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Past CPEx Award Recipients
Peak:
– Poudre Valley Health System (Fort
Collins, CO) – 2004, 2008
– GCC (Denver, Pueblo, Hesperus) - 2008
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Past CPEx Award Recipients
Timberline:
– LexisNexis Case Law and Citations (Colorado Springs, CO) –
2006
– McKee Medical Center (Longmont, CO) – 2006
– North Colorado Medical Center (Greeley, CO) – 2006
– Veterans Administration Health Administration Center (Denver,
CO) – 2005
– Transportation Expansion (T-REX) Project (Centennial, CO) –
2004
– Monfort College of Business, University of Northern Colorado
(Greeley, CO) – 2004
– Colorado Department of Labor Unemployment Insurance
Program (Denver, CO) – 2008
– St. Mary’s Hospital and Regional Medical Center ( Grand
Junction) – 2008
- The Aurora Mecical Center/Centennial Medical Plaza - 2008
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Why Apply?
“For us, Baldrige has provided the best consulting
services we’ve ever received and the least expensive.
Over the four years that we applied, we received more
than 200 pages of feedback from highly trained,
experienced, and professional Examiners, who spent
literally hundreds of hours with our application and on
site visit.
Sr. Mary Jean Ryan, President/CEO
SSM Health Care
Baldrige Award Recipient, 2002
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Why Apply?
“Because the Criteria are focused on what bestin-class companies do and are ever evolving.
Measuring ourselves against them and applying
for the Award has helped us strive to be the best
we can be.”
Martin Swarbrick, VP & Director
Office of Business Excellence
Motorola CGISS
Baldrige Award Recipient, 2002
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Why Apply?
“What evolved was a very clear direction toward the
Baldrige definition of quality. You can’t afford not to
focus on it. Because really if you break the Baldrige
criteria down, all it is is how to run a quality
organization…and get great results. And isn’t that what
companies are in business for?”
John Heer, President
Baptist Hospital Inc.
Baldrige Award Recipient 2003
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Benefits of Applying
 Accelerate improvement efforts
 Energize employees
 Gain an outside perspective
 Learn from the feedback
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Benefits of Applying
 Align efforts
 Focus on results
 Enhance certification & accreditation
efforts
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To Sum Up
Improved
 Alignment of plans and processes
 Communication
 Employee morale
Results!
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Doesn’t this quality stuff apply
just to manufacturing?
NO!
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EDUCATION
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Education Market Sector
Baldrige Recipients







Pearl River School District, NY – 2001
Chugach School District, AK – 2001
University of Wisconsin-Stout, WI – 2001
Community Consolidated School District 15, IL – 2003
Kenneth W. Monfort College of Business, CO – 2004
Jenks Public Schools, OK – 2005
Richland College, TX – 2005
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Monfort College of Business
2004 Baldrige Award Recipient in Education
(College/University)
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Results!
“Student applications have increased 28%
after we received the Baldrige award.
Contributions have increased nearly 20%.”
Dr. Joe Alexander, Dean
Kenneth W. Monfort College of Business
University of Northern Colorado
Baldrige Award Recipient in Education, 2004
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Richland College
2005 Baldrige Award Recipient in Education
 Enrollment has increased from approx. 12,500
credit students in 2000 to approx.14,500 in
2005 (16%)
 Exceeded local competitors in all five years,
including the next highest performer by more
than 3,000 in 2005.
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Jenks Public Schools
2005 Baldrige Award Recipient in Education
Results: Drop-Out Rates
Drop-Out Rate
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1999
2000
2001
2002
2003
2004
School Year
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RESULTS
Pearl River
School District
Cost Efficiency
Annual Per Pupil Expenditure
vs. Consumer Price Index
25
20
15
8
10
5
0
2.3
CPI
PPE
10.1
13.7
11.9
19
16.7
5.2
8.9
12.6
4.4
0.0
-3.3
-5
-10
17.8
16.1
-4
-1
-4.3
1995
1996
1997
1998
1999
2000
2001
2002
2003
2.3
0.0
5.2
-3.3
8
-4.3
10.1
-4
11.9
-1
13.7
4.4
16.1
8.9
17.8
12.6
19
16.7
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Why Apply?
“For us, going through the full application cycle was a
major catalyst in improving our organization. … For an
affordable application fee and site visit expenditure,
Baldrige provides education applicants with teams of
experts who conduct a thorough review and provide
detailed feedback, expertise that would be too costly for
us to purchase on the open market.”
Dr. Frank Auriemma,Superintendent
Pearl River School District
Baldrige Award Recipient, 2001
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HEALTH CARE
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“Five health care systems that have either won the Malcolm
Baldrige National Quality Award in Health Care or have been
documented in extensive case studies share a common
model of management…this approach produces results that
are substantially and uniformly better than average across a
wide variety of acute care settings.
As customers, courts, and accrediting and payment
agencies recognize this management approach, we argue
that it will become the standard for all hospitals to achieve.”
John R. Griffith, University of Michigan, and
Kenneth R. White, Virginia Commonwealth University
Journal of Health Care Management, May/June 2005
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Healthcare Sector








SSM Healthcare, MO – 2002
Baptist Hospital, FL – 2003
St. Luke’s Hospital of Kansas City, MO – 2003
Robert Wood Johnson University Hospital
Hamilton, NJ – 2004
Bronson Methodist Hospital, MI – 2005
North Mississippi Medical Center – 2006
Mercy Health System – 2007
Poudre Valley Health System - 2008
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Results
“We do this for one simple reason. We
have found it saves lives.”
Rulon Stacey, CEO
Poudre Valley Health System
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North Mississippi Medical Center
2006 Baldrige Award Recipient in Health Care
 Since 1999 a Care-Based Cost Management
Approach has provided cumulative gains of
$11.1M
 Debt has
from 26% to 21.8% in 2006
 2006 Physician overall satisfaction was 99%
 2006 Patient Likelihood to Recommend Scores
approached the Press Ganey 90th percentile
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Bronson Methodist Hospital
2005 Baldrige Award Recipient in Health Care
PhysicianSatisfaction
Satisfaction
Physician
Physician Satisfaction with IT at Bronson
100
95
90
85
80
75
70
65
60
55
50
99th Percentile*
85.6
79.9
70.2
56.7
2001
59.6
2002
2003
2004
2005
* Professional Research Consultants, Inc.
(Percentile calculated from a database of
19,684 physician responses across 161 hospitals)
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Proven Bottom-line Results
SSM Healthcare – 2002 Baldrige recipient
 Physicians connected to an automated
information system have increased steadily
from 3,200 in 1999 to 7,288 in 2002.
 For four years, SSMHC has maintained an
“AA Credit Rating” attained by < 1% of U.S.
hospitals.
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Robert Wood Johnson University
Hospital Hamilton
2004 Baldrige Award Recipient in Health Care
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What we tend in health care to focus on a lot of times is
the bottom line … the financials. That’s not what health
care is all about. Hospitals were not created to make
money. Hospitals were created, at the very first to take
care of patients, to take care of people. So, the Baldrige
criteria actually forces organizations to be focused on the
right things and to spend the right amount of time on the
things that are really important in health care.
John Heer, President
Baptist Hospital Inc.
Baldrige Award Recipient 2003
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NON-PROFIT/
PUBLIC SECTOR
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While some may suggest that business would go down if they
launch a thorough examination of their practices using WSQA
(Washington State Quality Award) tools and methodology (who has
the time, right?), well, DCS (Dept. of Child Services) is experiencing
the opposite. Business is booming. Collections were up over 8%
from last year at this time. Well above the norms from years past
and well beyond what might be attributed to a positive economy or
other outside factor.
Bottom line, by using WSQA tools and philosophies, committing to a
performance culture, being unafraid to ask the hard questions,
supporting continuous improvement and quality awareness at all
levels, DCS is kicking some serious quality behind.
Sam Senn, Acting Assistant Secretary
Division of Social and Health Services /Economic
Services Administration
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City of Coral Springs, FL
 GOV’T FIN. OFFICERS ASSOC.
DISTINGUISHED BUDGET AWARD FOR 16
CONSECUTIVE YEARS
 LOWEST CRIME RATE IN STATE
 4TH LOWEST CRIME RATE IN NATION
(POPULATION 100K – 500K)
 10TH LOWEST CRIME RATE OVERALL FOR
TYPE 1 CRIMES
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U.S. ARMY ARMAMENT RESEARCH,
DEVELOPMENT AND ENGINEERING CENTER
(ARDEC)
 Overall revenue
$1.2B in FY 07
from ~ $600M in FY 01 to ~
 Approx. 75% of technology projects transition
from research to customer funded development
 Job satisfaction from 87% in FY 04 to 92% in
FY07 (exceeding Gov’t Prod. & Qlty benchmarks)
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More Nonprofit Impacts
U.S. Army Engineering and Support
Center, Huntsville
 Saved over $107M from quality
improvements
 Has become 68% more efficient
 Leader in the Army for timeliness, quality,
and overall customer satisfaction
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More Nonprofit Impacts
New Mexico State Highway and
Transportation Department
Since 1996:
– Improved its average Ride Quality Index for
Interstate Roads by 24%
– Increased the number of interstate highway
miles in good condition by 16%
– Decreased fatalities by 15%
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But We …
 Don’t need an award
 Aren’t interested in an award
 Don’t have time to apply for an award
 Aren’t anywhere near a role model
organization
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It’s Not Just Another Award!
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Just for Applying ….
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Your Organization Receives …
A low cost value-added
assessment of your
organization’s
operational excellence
by a team of highly
trained examiners
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Value
“We applied for the Award, not with the idea of
winning, but with the goal of receiving the evaluation
of the Baldrige Examiners. That evaluation was
comprehensive, professional, and insightful …
making it perhaps the most cost-effective, valueadded business consultation available anywhere in
the world today.”
Bob Barnett, Executive Vice President,
Motorola, Inc.
Baldrige Award Recipient, 1988
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Your Organization Also
Receives ….
An extensive, objective feedback report that
 Highlights strengths and opportunities for
improvement
 Is based on independent assessment by
recognized experts
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Feedback
“If you use the feedback, your
organization will improve and so will your
results. Baldrige is the best way to get
better faster.”
Sr. Mary Jean Ryan, President/CEO
SSM Health Care
Baldrige Award Recipient, 2002
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The Power of a CPEx
Assessment
 Internal Analysis
– provides insightful self-assessment
 External Analysis & Feedback Report
– provided by a team of trained examiners
 Powerful strategic planning tool
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Value of the CPEx Evaluations
 Factors
# of hours per examiner x # of
examiners x $100 per hour
 Foothills – $ 20,000 - $25,000
 Timberline – $ 50,000 - $ 60,000
 Peak – $ 100,000
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The Return on Investment (ROI) on
application fee and site visit expense
is at least 10:1
but probably more!!
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Cost
“I’m often asked how much this effort costs. My
reply is that it is not a cost; on the contrary, it
makes us money.
Since we have been involved in the Baldrige
process, our growth and earnings have doubled
from the previous five-year period.”
Bill Enloe, CEO & Chairman of the Board,
Los Alamos National Bank
Baldrige Award Recipient, 2000
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The Relationship
Between
Other Performance Management
Systems
and
Baldrige
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But We’re Already Accredited ….
 ISO 9000 registrars
 Health care accreditors, such as JCAHO
 Education accreditors, such as the North
Central Association of Colleges and
Schools
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Basic difference:
acceptable performance
Vs.
Excellent Performance!
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Demonstrated, Sound Management
Framework
Baldrige-Based Model – a Systems Perspective
ORGANIZATIONAL PROFILE:
ENVIRONMENT, RELATIONSHIPS, AND
CHALLENGES
5
2
Strategic
Planning
Human
Resource
Focus
7
Organizational
Results
1
Leadership
3
Customer &
Market Focus
6
Process
Management
ISO 9000:2001
Lean/Six Sigma
JCAHO
4
Measurement, Analysis, and Knowledge Management
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ISO 9001:2000
 Applicable to manufacturing companies as well
as other organizations
 Based on eight quality management principles
 Focused on process management and
relationships across an organization
 Emphasis on quality systems, the monitoring of
customer perception, supplier and regulatory
compliance, and continuous improvement
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Lean Mfg./Process Improvement
 Systematic elimination of waste from all
aspects of organizational operations
 Methods include:
–
–
–
–
Kaizen
Value Stream Mapping
JIT/Kaban
Six Sigma
 Tools in an overall systems approach
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How Does Baldrige Differ from
ISO and Lean Mfg.?
Baldrige
 Offers an overall systems framework
 Focuses on the future
 Emphasizes organizational and personal
learning and knowledge sharing
 Emphasizes corporate governance and
ethics
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The Joint Commission on
Accreditation of Healthcare
Organizations (JCAHO)
 Established in 1951
 Evaluates and accredits nearly 19,000 health
care organizations and programs in the United
States
 Health care organizations benefit from JCAHO
accreditation as a qualification to operate
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Baldrige and JCAHO
Similarities
 Focus on continuous improvement
 Based on a set of core values
 Means for self-assessment
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Baldrige and JCAHO
Differences
JCAHO
Baldrige
 Patient care focus
 Overall organizational
focus, including focus
on patients
 All organizations can
qualify
 Has the same
expectations for all
orgs. & prescribes
compliance to those
expectations
 Role model
performance
 Considers individual
factors and strategic
challenges
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North Central Association
(NCA)
 Representing 19 states and the Department of
Defense Dependents Schools overseas
 NCA CASI has adopted Baldrige-compatible criteria
as the basis of its new District and School
Accreditation frameworks.
 The NCA Higher Learning Commission has created
the NCA Academic Quality Improvement Project
(AQIP).
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Show Me the Money!!!
Results, Results, Results
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Do We Get Business Results?
You bet…OMI wins almost 66% of the projects it
pursues, compared to our competitors’ average of
only 30%. And we have a contract renewal rate of
nearly 100% and surpass our competitors in
customer satisfaction!”
Roger B. Quayle, Executive Vice President
Quality and Technology, OMI, Inc.
2000 Baldrige Award Recipient in Service
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Boeing Aerospace Support
2003 Baldrige Award Recipient in Service
Revenue Performance
Started Baldrige
2000
2001
PLAN
ACTUALS
2002
AVG GROWTH
2003
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Boeing Aerospace Support
2003 Baldrige Award Recipient in Service
Earnings Performance
Started Baldrige
2000
2001
PLAN
ACTUALS
2002
2003
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More Results …
Boeing Aerospace Support
 Improved its supplier on-time delivery rate
from approx. 68% to 95% (1999-2003)
 Its quality of supplier deliverables
– above 99.5 % (1999-2002)
– 99.7% (2003)
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Customer Satisfaction
The Ritz-Carlton Hotel Company, L.L.C. (1992 and
1999 Baldrige Award Recipient in Service), reports that
75% of its customers would not use a competitor
regardless of the offer.
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The Bottom Line: Results
 Improved customer satisfaction and
loyalty
 Higher return on assets
 Greater employee productivity and
satisfaction
 Increased market share
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The Bottom Line: Results
 Reduced cycle time
 Decreased time to market
 Lowered costs
 Increased revenue
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Okay …
But Does It Really, Really Work?
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Sunny Fresh Food
1999 & 2005 Award Recipient in Manufacturing
Since receiving the 1999 Baldrige Award
 Revenues are up 93%
 Market share has increased while competitors’
has decreased by > 10%
 Customer satisfaction has remained near 100%
since 2001
 Sales and profit per stakeholder (employee)
have increased by 19%
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Long-Term Success
“It amazes me that U.S. businesses spend so much
money on ‘how-to’ books and coursework to teach
leaders how to build successful organizations.
My recommendation: implement the Baldrige-based
Criteria in your business. No other single document
can help build a long-term successful organization.”
Jerry Rose, President
Sunny Fresh Foods
Baldrige Award Recipient, 1999 & 2005
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Texas Nameplate
1998 & 2004 Award Recipient in Small Business
Since receiving the Award in 1998,
 Nonconformity to specs as a % of sales has dropped
to 0.5% vs. industry avg. of 2%
 Profitability has increased to > 40%
 Trimmed its production cycle from 14 days to 8 days
 Reduced its quote response time from 6 hours to < 2
hours
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Texas Nameplate, Inc.
2004 Award Recipient in Small Business
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Improve Performance
“If it weren’t for the state Baldrige award process,
Texas Nameplate would not be celebrating its 60th
year in business as a small manufacturer. I strongly
advocate the state award programs to any
organization wanting to focus and improve its
business performance.”
Dale Crownover, President & CEO
Texas Nameplate Company, Inc.
State Program
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No False Promises
 Not pushing “Snake Oil,”—this is not a “Silver
Bullet”
 Baldrige is not “aspirin for all ailments” or a
“cookbook” approach
 Long-term Leadership Commitment is critical
 There are options for management teams pursuing
excellence
 Baldrige is a proven performer. Those who use
it outperform!
State Program
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Not Just Another Fad
 Criteria are almost 20 years old
 > 2 million copies distributed
 Expanded to health care, education, and
non-profit
 More than 40 state & local award programs
 Dynamic management model based on
continuous improvement
State Program
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Want More Information?
 CPEx
www.coloradoexcellence.org
 Baldrige National Quality Award Program
www.quality.nist.gov
 The Alliance for Performance Excellence
www.networkforexcellence.org
State Program
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