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Celebrating 25 Years of the Baldrige Criteria:
Looking Back and Looking to the Future
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What Is Performance Excellence
Twenty-five Years in Ten Slides
Hot Off the Press
The Longer-term Future
Lessons Learned
Baldrige Simplified
Harry S. Hertz | 2013 Excellence in Tennessee Conference
February 20, 2013
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Performance Excellence
An integrated approach to organizational
performance management that results in
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delivery of ever-improving value to customers
and stakeholders, contributing to organizational
sustainability
improvement of overall organizational
effectiveness and capabilities
organizational and personal learning
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What Are the Criteria?
A set of expectations or requirements
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A structured approach to performance
improvement
A common language for facilitating
communication and sharing of best practices
A framework for a systems view of
performance management
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Role of the Criteria
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Education
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Award competition
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Baldrige Criteria Framework:
A Systems Perspective
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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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
2013
It’s the System
tools
building
blocks
a
delegated
responsibility
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Quality/Performance Excellence
Then and Now
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42 Items
17 Items
Building Blocks System
Business Results Are What It’s About
Product/Service QA
Quality Management
Performance Excellence
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Quality/Performance Excellence
Then and Now (continued)
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Human Resource Utilization
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Customer Satisfaction
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Quality Planning
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Quality Improvement Activities
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Improvement
Workforce Focus
Customer Engagement
Strategic Thinking
Organizational Learning
Innovation
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Baldrige National Quality Program
2013
Tenth Anniversary
CEO Survey and Forum
21st Century Challenges
• Use of the Internet
• Execution of Strategies
– Three-to-one over Development
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Baldrige Arrived!
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Why the Criteria Change and Evolve
“The future ain’t what it used to be”.
Yogi Berra
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Criteria Evolution
The Leading Edge of
Validated Management Practices
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Evolution of Criteria Concepts
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Manufacturing Quality (1988)
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Alignment (1992)
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Public Responsibility and Corporate Citizenship (1993)
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Business Results, including Financial Results (1995)
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Strategic Planning (1995)
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Current Criteria Framework (1997)
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Organizational Profile (2001)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Evolution of Criteria Concepts (continued)
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Knowledge Management (2003)
Governance and Ethics (2003)
A-D-L-I (2004)
Succession Planning (2005)
Strategic Challenges, Strategic Advantages, and Core
Competencies (2007)
Le-T-C-I (2008)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Evolution of Criteria Concepts (continued)
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Customer Engagement (2009)
Line-of-Sight: Core Competencies→Strategy→Work
Processes (2011)
Innovation: Strategic Opportunities and Intelligent Risk
Taking (2013)
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Social Media (2013)
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Work Systems as a Strategic Concept (2013)
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
2013–2014 Criteria Revisions
Cultivating and Managing Innovation
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Innovation….
o making meaningful discontinuous change to
products, processes, or organizational
effectiveness to create new value for stakeholders
o results from a supportive environment and a
process for identifying strategic opportunities and
pursuing the intelligent risks
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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2013–2014 Criteria Revisions
Cultivating and Managing Innovation
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Innovation Requires ….
o senior leaders fostering the right climate
o resource and infrastructure (information) support
o prioritization and re-prioritization
o tolerance for failure
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
2013–2014 Criteria Revisions
Mastering Social Media
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Leading the leading edge of validated management
practice
Social media roles
o reaching customers and potential customers
o connecting employees with leaders and each other
o coordinating with suppliers and partners
o gathering data and performing research
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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2013–2014 Criteria Revisions
Mastering Social Media
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Engaging in social media poses risks
Mitigating risks relies on clear organizational
values
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
2013–2014 Criteria Revisions
Designing and Implementing Work Systems
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Work Systems….
o how your organization’s work is accomplished
o internal work processes and external resources to
succeed in your marketplace
o involve employees, suppliers and partners,
contractors, and collaborators
o from concept to customer support
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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2013–2014 Criteria Revisions
Designing and Implementing Work Systems
Decisions are strategic (Category 2)
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o protecting IP
o capitalizing on core competencies
o seeking efficiency and sustainability
o affecting organizational design and structure
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
2013–2014 Criteria Revisions
Designing and Implementing Work Systems
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Example: manufacturer of electronic widgets
o next generation product research: in-house or
contract R&D
o manufacturing : all in-house or critical components
or final assembly
o sales: sales force or distributors
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Affects workforce size, facilities needs,
geographic footprint, organizational design,
carbon footprint, and societal responsibilities
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Customer of the tax system
Is this a high-performing work system?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Baldrige Enterprise
• Baldrige Program
• Baldrige Foundation
• Alliance for Performance Excellence
• ASQ
Vision: To enhance the competitiveness, quality, and
productivity of organizations through an integrated,
financially sustainable Baldrige Enterprise with a strong
core program and strong partner programs that carry the
Baldrige brand.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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The Future Trends
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Global Markets vs. Protectionism and Local Sourcing
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Social Responsibility as a Business Driver
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Business Model Innovation and Agility
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The Protection and Role of IP
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Delivery of Higher Education and Lifelong Learning
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Regional Enterprise Integration
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“Home” Manufacturing
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2012 Baldrige Applicant Scoring
2013
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Lessons Learned
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The Changing Pace of Change
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The Need for Agility
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The Demands of Complexity
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The Bar Is Always Getting Higher
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Performance Excellence Is a Journey
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
What We Have Learned
Measure Business Impact
Financial Performance Results
Cumulative EAT vs. budget
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Thomson Reuters Study
Baldrige hospitals were six times more likely to
be counted among the 100 Top Hospitals.
http://www.nist.gov/baldrige/upload/baldrige-hospitalresearch-paper.pdf
Baldrige Performance Excellence Program | www.nist.gov/baldrige
2013
Baldrige in Three Questions
1.
Is your organization doing as well as it could?
2.
How do you know?
3.
What and how should your organization improve or
change?
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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Resources for More Information
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Most Baldrige Performance Excellence Program
(BPEP) documents are available both in printed
form and on the BPEP Web site.
To obtain these documents,
call (301) 975-2036, e-mail baldrige@nist.gov, or
visit www.nist.gov/baldrige.
Baldrige Performance Excellence Program | www.nist.gov/baldrige
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