BALDRIGE FOR BEGINNERS
2012 Conference November 14-16, 2012
© 2012 Excellence in Missouri Foundation
Bob Dorste, Performance Consultant
Excellence in Missouri Foundation
Workshop
Workshop Overview
Overview

Introduction to Performance Improvement

Introduction to the Baldrige Criteria for
Performance Excellence

Baldrige Gets Results!

Ways to Get Started
History
Historyof
ofBaldrige
Baldrige Criteria
Criteria

In the mid-1980s, U.S. leaders realized that American companies needed to focus on
quality in order to compete in an ever-expanding, demanding global market.

Then-Secretary of Commerce Malcolm Baldrige was an advocate of quality management
as a key to U.S. prosperity and sustainability. After he died in a rodeo accident in July
1987, Congress named the Award in recognition of his contributions.

The goal of the Malcolm Baldrige National Quality Improvement Act of 1987 was to
enhance the competitiveness of U. S. businesses. Its scope has since been expanded to
health care and education organizations (in 1999) and to nonprofit/government
organizations (in 2005).

Congress created the Award Program to
 Identify
and recognize role-model businesses
 Establish criteria for evaluating improvement efforts
 Disseminate and share best practices
Excellence
ExcellenceininMissouri
Missouri Foundation
Foundation
The Excellence in Missouri Foundation was
established in 1992 to help Missouri
organizations improve performance and
succeed in the competitive marketplace.
 EIMF is the administrator of the Missouri
Quality Award process, designed to recognize
exemplary organizations for their
achievements in Performance Excellence.

Not About
Receiving
an
Award
Not About Receiving an Award – It’s
It’s AboutAbout
Being
“Award-Worthy”
Being
“Award-Worthy


Dr. Terry Holliday, former Superintendent of IredellStatesville Schools, a 2008 Baldrige Award recipient,
said, “If you get into Baldrige because of the Award,
it’ll be a short journey. But if you get into it for the
right reasons, the feedback and continuous
improvement, then it’s well worth the journey.”
Ernest Davenport, former Chairman and CEO of
Eastman Chemical Company, a 1993 Baldrige Award
recipient, said, “We didn’t apply the [Baldrige]
concepts…to win an award. We did it to win customers.
We did it to grow. We did it to prosper.”
Excellence
is aisJourney,
Excellence
a Journey,
Not
Nota Destination
a Destination
K & N Management
2010 Baldrige
Recipient
“I realized only 5% of the population truly
wants to do what it takes to be excellent.”
http://www.baldrige.nist.gov/PDF_files/2010_K&N_Management_Profile.pdf
© 2012 Excellence in Missouri Foundation
Excellence
is aisJourney,
Excellence
a Journey,
Not
Nota Destination
a Destination
“We still use the Baldrige Criteria the same way. It’s
the framework that we use to manage our company.
We’re better because we use it, and we don’t have
any plans to stop. … The Criteria bring alignment that
keeps us all rowing in the same direction.”
--Ken Schiller, co-owner and co-founder, K&N
Management, 2010 Baldrige Award Recipient
• Keynote Speaker at 2011 MQA Annual
Conference
© 2012 Excellence in Missouri Foundation
Assessment/Criteria
Framework
The Baldrige Burger
Baldrige Categories

Leadership
 How
senior leaders’ personal actions guide and
sustain your organization
 Governance system
 Fulfilling legal, ethical and societal
responsibilities
 Supports key communities
Baldrige Categories

Strategic planning
 Developing
strategic objectives and action plans
 Strategy deployment
 Changing strategic objectives and action plans
if circumstances require
 How progress is measured
Baldrige Categories

Customer focus
 Engaging
customers for long-term success
 Building a customer-focused culture
 Listening to the voice of the customers…and
using this information to improve and identify
innovation opportunities
Baldrige Categories

Measurement, analysis, and knowledge
management
 Selecting,
gathering, managing and improving
data, information and knowledge assets
 Managing information technology
 Reviewing and using reviews to improve
performance
Baldrige Categories

Workforce focus
 Engaging,
managing and developing
workforce
 Ability to assess workforce capability and
capacity
 Workforce environment delivering high
performance
Baldrige Categories

Operations Focus
 Designing
work systems
 Designing, managing and improving key
processes
 Readiness for emergencies
Baldrige Categories

Results
 Product
Outcomes
 Customer – Focused Outcomes
 Workforce – Focused Outcomes
 Operations-Focused Outcomes
 Leadership Outcomes
 Category-based,
trends, comparisons where
applicable
 Important! 450 out of 1,000 points
What Makes the Criteria for
What Makes the
Criteria for Performance
Excellence Different
Performance
Excellence
Different from
FromManagement
Other Management
Approaches?
other
Approaches?
The Criteria for Performance Excellence
are a comprehensive management
approach that focuses on results in all
areas, organizational and personal
learning, and knowledge sharing.
Why
Whythe
theCriteria
Criteriafor
for Performance
Performance
Excellence?Excellence?


Provides a management approach to improve your
organization’s performance validated by thousands of
organizations nationwide
Guides organizations to:
 Think and act strategically
 Align processes and resources
 Engage workforce and customers
 Focus on key results
Why Conduct a Baldrige –
Based Assessment?





Provides a fact-based analysis
Uses a proven (25 year) tool
Enables determining performance on a national yardstick
Enables focus on improving that which will have the
greatest positive impact on customers, stakeholders, and
the organization
Builds a customer focus and results oriented culture
Baldrige Gets Results!
(Business)
Honeywell Federal Manufacturing & Technologies



Overall customer satisfaction reached or exceeded 95%.
Customer product quality and reliability reached 99.9% for traditional customers and 99%
for nontraditional customers.
72% of the workforce indicated a “positive environment,” compared to 56% for
commercial best-in-class manufacturers.
Cargill Corn Milling (CCM)
 CCM saved more than $15 million from 2006 to 2008 by using ideas generated by
employees.
 The error-free delivery rate was 99% or above from 2005 to 2008.
 Per-bushel costs held steady from FY2006 to FY2008 even though energy costs increased
50-80%, chemical costs rose 30%, and maintenance costs increased 10%.
Baldrige Gets Results!
(Business)
Nestle Purina
2010 Baldrige
Recipient
http://www.baldrige.nist.gov/PDF_files/2010_Nestle_Purina_Profile.pdf
© 2012 Excellence in Missouri Foundation
Baldrige Gets Results!
(Non-Profit)
City of Coral Springs



The crime rate decreased by nearly half over 10 years.
The percentage of residents who are satisfied with city services has been 95% or higher
since 1999.
Business satisfaction rose from 76% in 2004 to 97% in 2008.
VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center
 Budget for new studies grew 143% from 2002 to 2008, compared to 58% for Veterans
Affairs.
 In 2008, productivity (as measured by revenue/employees) of $221,000 compared
favorably to that of eight top competitors, with the highest competitor at $195,000.
 Overall, customer satisfaction increased: the percentage of customers rating the program
“good-excellent” increased from 83% in 2003 to 100% in 2009. Customer complaints were
consistently fewer than 3.4 per million units shipped from 2001 to 2009.
Baldrige Gets Results!
(Non-Profit)
Concordia
Publishing House
http://www.nist.gov/baldrige/award_recipients/concordia_profile.cfm
© 2012 Excellence in Missouri Foundation
Baldrige Gets Results!
(Education)
Montgomery County
Public Schools
http://www.baldrige.nist.gov/PDF_files/2010_MCPS_Profile.pdf
© 2012 Excellence in Missouri Foundation
Let the record show…
100%
91%
Percentage Change
90%
79%
80%
Award Winners
Control Firms
69%
70%
60%
50%
43%
40%
37%
32%
30%
23%
20%
7%
10%
9% 6%
8%
0%
0%
Operating
Income
Sales
Total
Assets
Employees
Return on
Sales
Return on
Assets
Performance Measures
HENDRICKS AND SINGHAL STUDY
Let the record show…
B ENEFITS OF B ALDRIGE
The Baldrige Model
Tailored to Help Your Organization Grow
That’s why thousands of organizations of all sizes in every
industry use the Baldrige Criteria—and a select group applies
for the Missouri Quality Award and the Malcolm Baldrige
National Quality Award , including many Missouri companies
representing the best of the best in management practices:

Large, Fortune 500 companies, including Boeing Aerospace
Support (2002 recipient of the Missouri Quality Award, and
2003 Malcolm Baldrige National Quality Award recipient).

Small businesses, such as Midway USA (2008 recipient of
the Missouri Quality Award and 2009 Malcolm Baldrige
National Quality Award recipient), and Missouri Corporate
Credit Union (2006 Missouri Quality Award Recipient).
The Baldrige Model
Tailored to Help Your Organization Grow


Large hospitals and hospital systems, like SSM Health
Care (2-time Missouri Quality Award recipient and
2002 Malcolm Baldrige National Quality Award
recipient), Heartland Health (2-time Missouri Quality
Award recipient and 2009 Malcolm Baldrige National
Quality Award recipient) as well as single hospitals like
Lake Regional Hospital (2003 Missouri Quality Award
recipient).
Large and small schools and colleges, such as
Northwest Missouri State University (4-time Missouri
Quality Award recipient) and Park Hill School District
(2009 Missouri Quality Award Recipient).
The Baldrige Model
Tailored to Help Your Organization Grow
Why Are These Organizations Outperforming?

They view their organizations as a 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”
The Baldrige Model
What it is NOT






NOT a fad…effective performance model for 25 years
NOT (intended to be) additive
NOT easy
NOT a quick fix
NOT a program
NOT an award
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?
How does EiMF help your
organization with Baldrige?
The Excellence in Missouri Foundation offers organizations:
 An integrated management framework that gets results
 Assessment tools to evaluate improvement efforts
 Training for examiners so that they can learn best practices
from other organizations and bring those back to your
organization
 Feedback reports from a team of trained experts,
highlighting organizational strengths and opportunities for
improvement
How does EiMF help your
organization with Baldrige?
The Excellence in Missouri Foundation offers organizations:
 Presentations and workshops on how to improve using the
Baldrige Criteria
 Customized assistance tailored to your organization’s needs
 Conferences and other learning events that showcase best
management practices
 The Missouri Quality Award for organizations recognized
as national role models
How to Get Started

Many organizations tell EIMF that they are not
ready to apply for the Missouri Quality Award.
So, where do you get started?
 Examiner
Training
 Assessments
 Missouri
Quality Award Process
 Customized
Consulting
 Membership
and Baldrige Community of
Excellence Groups (BPEGs)
© 2012 Excellence in Missouri Foundation
Why Serve as an Examiner?

Many organizations choose to send examiners through the MQA process to
become trained in the Baldrige Criteria.
 Understanding
the MQA Criteria has been compared to
completing a “mini-MBA.” Through their training and
assessment work, Examiners have the chance to learn how
high-performing organizations have used the criteria to
improve their own organizations.
 Examiners also get an opportunity to develop their personal
and analytical skills as they work with their fellow team
members. The extensive insight they obtain as a result makes
them a more valuable person when they bring this learning
back to their regular job.
© 2012 Excellence in Missouri Foundation
Training Your Workforce
MQA Examiner Training
© 2012 Excellence in Missouri Foundation
Examiner Benefits





Strengthen your ability to use the Criteria for Performance
Excellence for organizational assessment
Network with peers and enhance your own professional growth
Review applications from leading organizations in Missouri to
learn how they achieve performance excellence
Develop analytical and consensus building skills and a systems
perspective that can be applied to your organization
Possibly participate in site visit reviews of the highest scoring
applicants
© 2012 Excellence in Missouri Foundation
Examiner Process and Commitments








Expert Examiner Training (3 Days for New Examiners) *
8 Hours General Examiner Training
20 – 30 Hours for Pre-Work
40 Hours for Individual Review
10 Hours for Consensus Prep
8-10 Hours for Consensus Meeting
8-10 Hours for Site Visit Training
1 week of Site Visit work (Sunday – Friday, 60 – 80 Hours, all
examiners stay in hotel near applicant with team)
*$350 charge for training in 2012, HOWEVER, member organizations can send up to six
examiners free of charge. There is a $350 cancellation fee for examiners who do not
© 2012 Excellence in Missouri Foundation
complete site visit.
Examiner Hierarchy







New Examiner
Returning Examiner – Typically serves 3 years before becoming a senior
examiner
Senior Examiner – Skilled at comment writing, and diligent about
performing volunteer duties; shows promise as becoming a team leader
Team Back-up – Ready to take on additional responsibility of helping
organize and assist with new examiners
Team Leader – Shows leadership and responsibility, strong ability to
organize team activities, answer questions, and direct team members
according to the criteria
Overseer – Expert on criteria, expected to oversee the team and make sure
they are following proper procedures throughout the process
Judge – Neutral parties that read feedback reports from the teams, and
make determinations on the recipients of the
Missouri Quality Award
Introduction to Assessments
© 2012 Excellence in Missouri Foundation
Assessment Purpose

Identifies strengths on which to continue building

Identifies next steps to enable achieving the next
level of performance

Identifies the most important next steps to take

Develops widespread understanding of the Baldrige
Performance Excellence/Management Model
Assessment Hierarchy
Malcolm Baldrige National
Quality Award
Missouri Quality
Award
Leadership Triad
Application
Show Me More!
Show Me Challenge
Why Do the Show Me
Challenge Assessment?

Educate Leadership Team - Baldrige is a top down
approach.

Educate organization - Organization needs to have a
basic understanding of the Baldrige model.

Conduct baseline organizational assessment against the
Baldrige criteria
Show Me Challenge

Timeline is 3-6 months for most organizations
 Team of 6 OR 12 members of your mid-level
employees trained in Baldrige concepts
 Comprehensive Feedback Report based on the
Baldrige Criteria, written by EiMF staff that
addresses
 Strengths and OFIs in each category
 Key Themes for the identification of next steps
Show Me” Internal Assessment
Process
Team Training
(1 day)
Leadership
Interviews
Walk Around
Interviews
Walk Around
Training
(2.5 hours)
EIMF develops
Feedback
Report based on
Findings
Consensus
(1-2 days)
Final
Report
After the Assessment…
“Now What?”

Prioritize opportunities for improvement

Develop action plans

Execute the plans

Measure progress
 Show
Me More Assessment
 MQA Application
Missouri Quality Award Process
© 2012 Excellence in Missouri Foundation
Missouri Quality Award Process
It’s Not About a Trophy


The Missouri Quality Award is the state’s highest
honor of recognition for an organization’s
achievements in Performance Excellence and
implementation of the Baldrige Criteria.
The MQA process is also a valuable tool that can be
used to help an organization identify strengths and
opportunities for improvement, regardless of whether
an organization receives the award.
© 2012 Excellence in Missouri Foundation
Missouri Quality Award Process
1.
An organization can apply to three different award
levels.
1 – Fifteen page application including Organization
Profile, 6 process questions and 4 results
 Level 2 – Thirty-five page application including
Organization Profile, 24 process questions and 6 results
 Level 3 – Full 50 page application, to apply for the
Missouri Quality Award
 Level
© 2012 Excellence in Missouri Foundation
Missouri Quality Award Process
2.
After application submission…
Level 1 – Two senior examiners would lead application review
and feedback report
 Level 2 – Four examiners (1 Team Lead and 3 examiners)
perform application review and provide feedback report
 Level 3 – A team of 8-12 examiners from various sectors and
areas of the state perform an individual review of the
application. The examiners formulate 6-8 feedback comments
addressing each area of the criteria, identifying both strengths
and opportunities for improvement. Each examiner spends an
average of 60 hours during this stage.
© 2012 Excellence in Missouri Foundation

Missouri Quality Award Process
3.
Consensus Process:
Level 1 – Two examiners collaborate throughout process to
create feedback report
 Level 2 – Coordinate consensus with Level 3 depending on
Overseer availability, same process as Level 3
 Level 3 – Following Individual Review, the team of examiners
come together for a one-day consensus meeting in July,
identifying the Key Themes from the comments of all the
examiners. During consensus, the team arrives on a score for
the application.

© 2012 Excellence in Missouri Foundation
Missouri Quality Award Process
4.
In August, the Board of Judges reviews the
consensus scorebook from the teams and
determines if an applicant will receive a site visit.
© 2012 Excellence in Missouri Foundation
Missouri Quality Award Process
5. Once a site visit has been awarded, the team of
examiners travels in September to the applicant’s
location for “walk arounds.”
Level 1 – Proposing two ½ day visits separated by 1 to 2 weeks
 Level 2 – Coordinate with Level 3 site visits, proposing 2 ½
days
 Level 3 – After 2-3 days on-site, the team spends 2-3 days
compiling their final findings into a completed feedback report,
usually approximately 50 pages.

© 2012 Excellence in Missouri Foundation
Missouri Quality Award Process
6.
Based on the final report and scoring, the Board of
Judges choose which applicants receive the
respective award level.
Level 1 – Scoring range of 10-25% receives a Transition to
Quality Certificate, scoring range of 30-45% receives a Basic
Achievement in Quality Certificate
 Level 2 – Scoring range of 10-25% receives a Transition to
Quality Certificate, scoring range of 30-45% receives a Basic
Achievement in Quality Certificate, scoring range of 50-65%
receives Overall Achievement in Quality Certificate
© 2012 Excellence in Missouri Foundation
 Level 3 – Missouri Quality Award

Missouri Quality Award Process


In November, the MQA recipients are recognized at
the annual conference in Columbia, MO.
During the conference, examiners are also
recognized for their dedication and service, and all
attendees are invited to hear speeches from previous
MQA recipients and past national Baldrige award
recipients.
© 2012 Excellence in Missouri Foundation
Missouri Quality Award Recipients

There is no limit to the number of awards presented.
Previous winners include:

2012 (2 recipients): Research Psychiatric Center (Kansas City), SSM Home Care (St.
Louis)

2011 (4 recipients): Federal Reserve Bank of Kansas City (Kansas City), SSM Health
Care and SSM Integrated Health Technologies,(St. Louis), University of Missouri Health Care
(Columbia)

2010 (6 recipients): Capital Region Medical Center (Jefferson City), Citizens Memorial Healthcare

2009 (3 recipients): Concordia Publishing House (St. Louis), Park Hill School District

2008 (5 recipients): Federal Reserve Bank of St. Louis (St. Louis), Midway USA
(Bolivar), Lake Regional Health System (Osage Beach), Mid-America Transplant Services (St. Louis), Saint Luke’s
Health System (Kansas City), SSM Health Care (St. Louis)
(Kansas City), St. Mary’s Health Center (Jefferson City)
(Columbia), Northwest Missouri State University (Maryville), SSM Integrated Health
Technologies (St. Louis), SSM St. Francis Hospital and Health Services (Maryville)
© 2012 Excellence in Missouri Foundation
Thoughts to Consider


Applicants who have completed a Show Me Challenge
Assessment score, on average, 100 points higher on
their state level application than those organizations
who did not complete an internal assessment.
Of the seven Missouri Organizations who have received
Baldrige, every one competed and won at the state level
prior to applying to and winning Baldrige.
Thoughts to Consider


All of the Missouri Baldrige winners build their
expertise of the criteria and the examination process by
serving as an examiner at the state level.
The completion of an internal assessment aids in the
completion of an application for the State or National
level programs. The feedback report can be leveraged to
respond to the criteria questions.
Customized Consulting
With expertise in all aspects of the Baldrige
Performance Excellence and Business Management
Model, EiMF can customize consulting services to
your needs. Examples include:

Focus Groups

Balanced Scorecard

Strategic Planning

Core Competencies

Communications Planning
B ECOME A M EMBER
O RGANIZATION
Benefits of Membership

Entrance into local BPEG group for networking
& educational experiences (cohort learning)
 Discounts on workshops, conference & Quest
events
 Listing on EiMF promotional materials such as
conference programs, website, etc.
 FREE new examiner training for up to 6
employees ($350 value/each)
Membership Levels
Individual
Organizational Membership
Premium Membership
2-15
16-50
51-75
76-99
100-199
200-499
500+
Stakeholder
Supporter
Collaborator
Facilitator
Leader
Visionary
Partner
$150
$150
$250
$500
$750
$1,200
$2,000
$3,000
$3500+
$5K+
$10K+
$20K+
$35K+
$50K+
$75K+
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# Employees
Dues
Benefits Category 1
Benefits Category 2
Benefits Category 3
Benefits Category 4
Benefits Category 5
Benefits Category 6
Benefits Category 7
+
What are your Questions?