2012 Baldrige Excellence Begins with Senior Leadership Excellence • • • • Why Baldrige Challenges Leaders CEO Challenges Leadership Excellence & Challenges Baldrige Simplified Excellence in Tennessee Conference Harry S. Hertz | February 22, 2012 Baldrige Performance Performance Excellence Excellence Program Program || www.nist.gov/baldrige www.nist.gov/baldrige Baldrige 2012 Why Baldrige Challenges Leaders ● ● ● ● ● Because Baldrige Can’t Be Delegated Because Baldrige Starts with Leadership Vision, Leadership Responsibilities, and Governance Because Baldrige Matches the Complexity of the Enterprise and Its Environment Because Baldrige Is Strategic Because Baldrige Is about Results Tied to Process Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Baldrige Criteria Framework: A Systems Perspective Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 The Baldrige Criteria, Six Sigma, and Lean are complementary, not mutually exclusive. Many organizations use Baldrige to develop an overall performance map to identify areas that need improvement, and then they may use one or more of these tools to design operations or improve processes within the organization. . Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Capitalizing on Complexity ● ● IBM 2010 Global CEO Study More Than 1500 CEOs - Face-to-Face Interviews - 60 Countries - 33 Industries Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Capitalizing on Complexity CEO’s: ● Embody Creative Leadership - Ambiguity and Experimentation - Lead and Interact in New Ways ● Reinvent Customer Relationships - Getting Connected Highest Priority ● Build Operational Dexterity - Strategies that Allow Speed and Flexibility - Complexity that Strives for Simplicity Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 www.inceosurvey.com Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Corporate Reputation 1.1a (1) How do senior leaders’ actions reflect a commitment to the organization’s values? 1.1a (2) How do senior leaders’ actions demonstrate their commitment to legal and ethical behavior? How do they promote an organizational environment that requires it? 1.2 Governance and Societal Responsibilities a. Governance System b. Legal and Ethical Behavior c. Societal Responsibilities and Support of Key Communities Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Customer Loyalty and Retention 1.1a (3) – How do senior leaders create a workforce culture that delivers a consistently positive customer experience and fosters customer engagement? Baldrige Performance Excellence Program | www.nist.gov/baldrige Consistent Execution of Strategy Being Able to Adapt Quickly to Change Product or Service Innovation Sustained and Steady Growth 1.1a(3) How do senior leaders create a sustainable organization? How do senior leaders create an environment for the accomplishment of your mission and strategic objectives, innovation, performance leadership, and organizational agility? 1.1b(2) How do senior leaders create a focus on action to accomplish the organization’s objectives, improve performance, and attain its vision? Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 2012 Employee Retention and Recruitment 1.1a(3) How do senior leaders: - Create an environment for workforce learning? - Participate in succession planning and the development of future organizational leaders? 1.1b(1) How do senior leaders communicate with and engage the entire workforce? How do senior leaders take an active role in reward and recognition programs? Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Health Care Costs Thomson Reuters research study issued last week found: - Baldrige hospitals six times more likely to be among the 100 Top Hospitals - Baldrige hospitals statistically outperform 100 Top Hospitals on CMS core measures Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Key Excellence Indicators: Leadership 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 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 Distinguishing Role Model from Really Good • • • • • • Evidence-Based Management Achievement in Results Entrepreneurism and Innovation Agility Governance and Leadership Metrics Work Systems and Work Process Baldrige Performance Performance Excellence Excellence Program Program || www.nist.gov/baldrige www.nist.gov/baldrige Baldrige 2012 VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center: Leadership 10 timeless “principles” Cowboy Ethics: What Wall Street Can Learn from the Code of the West by James P. Owen, © 2004 Baldrige Performance Excellence Program | www.nist.gov/baldrige VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center: Leadership VA CSP Core Values Cowboy Ethics: Code of the West Leadership Live each day with courage. Always finish what you start. Do what has to be done. When you make a promise, keep it. Customer Service Remember that some things aren’t for sale. Continuous Learning Take pride in your work. Teamwork Be tough, but fair. Talk less, say more. Ride for the brand. Safety Know where to draw the line Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 2012 Leadership Do’s Do: ● Make improvement your focus, not an award ● Accept feedback; it can identify blind spots ● Things your way; there is no magic formula ● Focus on relationships and building trust ● Stay committed and be patient Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Leadership Don’ts Don’t: ● Expect only highs along the journey ● Let Baldrige become an add-on activity ● Expect magic bullets ● Focus on the Award ● Retreat when facing resistance ● Give up! Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Baldrige Leadership Challenges Transition to an Enterprise Business Model: ● ● ● ● ● ● Mutual Respect and Trust Constant Communication Agility Take Pride in Our Accomplishments and Work Innovate Show the Love Baldrige Performance Excellence Program | www.nist.gov/baldrige Baldrige Leadership Challenges Reorganized Team Structure: ● ● 6 Teams 2 Teams Operations Transition Team - Provide Essential Products and Services - Eliminate, Streamline, Innovate ● Enterprise Transition Team - Alternate Assessment - Revenue Generation - Partnering - Communications Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 An Executive Guide Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 2012 What We Have Learned Measure Business Impact Financial Performance Results Cumulative EAT vs. budget Baldrige Performance Excellence Program | www.nist.gov/baldrige 23 2012 Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Leadership Ethics……. Drives Workforce Engagement Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 Baldrige Is Too Complex? Baldrige in Three Questions ● ● ● Is your organization doing as well as it could? How do you know? What and how should your organization improve or change? Baldrige Performance Excellence Program | www.nist.gov/baldrige 2012 For More Information ● ● ● ● ● ● Baldrige 20/20 Criteria booklets Self-assessment tools based on the Criteria Award recipient videos and profiles Case studies Baldrige community www.nist.gov/baldrige baldrige@nist.gov (301) 975-2036 Baldrige BaldrigePerformance PerformanceExcellence ExcellenceProgram Program|| www.nist.gov/baldrige www.nist.gov/baldrige